UN Climate Action Summit: EIB and fellow MDBs commit to collectively raise annual climate finance to USD 175 billion by 2025 in response to climate crisis
22 September 2019
Individual efforts to collectively total at least USD 65 billion annually by 2025, with USD 50 billion for low and middle income economies, 50 percent above current levels
Joint adaptation finance provided to clients expected to double to USD 18 billion annually by 2025, compared to current levels.
Collective efforts to result in a further USD 40 billion of climate investments mobilized annually from private sector investors
The EIB, together with eight other multilateral development banks (MDBs)* pledged in a statement today during the UN Secretary-General’s Climate Action Summit to raise their annual global climate action investment to USD 175 billion by 2025.
This increase would notably focus on low and middle-income economies, and on climate adaptation. To reach their target, the MDBs intend to strengthen partnerships, particularly with private sector investors, to optimise the impact of their climate finance. Rising to USD 110 billion, co-financing is indeed expected to represent almost 2/3 of the total USD 175 billion planned for climate financing by 2025. This would include USD 40 billion mobilised from private sector investors.
Speaking from New York, EIB President Werner Hoyer said: "As a public financial institution, we have a major role to play in making our economies carbon-neutral, greener, climate resilient and more inclusive. We must lead by example, by showing unprecedented ambition with our own investments and by facilitating the flow of private capital into sustainable investments at the needed scale globally. This is what we are doing now, all multilateral development banks together, with this new commitment. To significantly step up our climate finance for this fight we need to better mobilise private investment. This is the key to make a real impact”.
Multilateral development banks have been leading climate action for more than a decade to meet the objectives of the Paris Agreement, which aims to limit the increase in global temperatures to well below 2°C, pursuing efforts for 1.5°C.
This statement confirms the MDBs’ collective efforts already demonstrated by the record level of climate finance and co-finance with USD 111 billion reached in 2018 in developing countries and emerging economies.
* Asian Development Bank, African Development Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank and World Bank Group.
The European Investment Bank (EIB) is the long-term lending institution of the European Union and is owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals both in Europe and beyond. The European Investment Bank is active in around 160 countries. It is one of the world’s largest financiers of climate-related investment with USD 100bn committed for climate action in the 5 years up to 2020 in support of the Paris Agreement.
Today, the City Climate Finance Gap Fund (“The Gap Fund”) was launched jointly by ministers and directors of the Governments of Germany and Luxembourg together with the World Bank, EIB and Global Covenant of Mayors. It paves the way for low-carbon, resilient and livable cities in developing and emerging economies by unlocking infrastructure investment at scale.
Szczecin has become the second Polish town to receive a loan from the EIB to finance a municipal development plan for social and affordable housing. The EIB has agreed to lend up to PLN 85 million (approx. €20 million) to two housing companies owned by the City of Szczecin for the construction and renovation of 250 social and affordable housing units (169 new and 81 renovated) and associated underground parking facilities.
This wide-ranging collaboration between the bank of the European Union and the Lazio Region will lead to funding of €500m in all production sectors in the coming years. This is the goal of the agreements already signed or still being finalised that were announced today by Dario Scannapieco, Vice-President of the EIB, and Nicola Zingaretti, President of the Lazio Region, and which are also intended to support the post COVID-19 recovery.