Strengthening EU development finance key to addressing global challenges
New report endorses dedicated EIB development subsidiary proposal
Plans for European Bank for Sustainable Development to be discussed with Finance Ministers
European Investment Bank President Werner Hoyer today welcomed publication of the report by the Wise Persons Group on the European financial architecture for development and confirmed how proposals for a European Bank for Sustainable Development would address systematic investment gaps identified by the report.
“The European Investment Bank welcomes the report by the Wise Persons Group. It confirms the important role the EIB Group is playing in delivering EU policies outside the Union. The report highlights the fact that establishing a development subsidiary at the EIB is politically and financially the most feasible option to address systemic gaps in the European development finance architecture.” said Werner Hoyer, President of the European Investment Bank.
EIB proposal for a dedicated development finance subsidiary
The new report recommends three options to streamline European Union development finance activity outside Europe and strengthen support for achieving the Sustainable Development Goals.
“We should now focus on delivering results quickly. That is why the EIB has proposed a dedicated EIB development subsidiary to strengthen the EU institutional setup, the European Bank for Sustainable Development (EBSD). As a dedicated structure, EBSD can strengthen the development focus of the EIB, with a stronger involvement by the European Commission, EEAS, the European Parliament, Member States and their National Promotional Institutions and development agencies. What we propose is a modular approach, starting EBSD as a dedicated structure within the EIB, which can deliver immediate and visible benefits without significant additional financial resources.” added President Hoyer.
In recent months the EIB has developed detailed proposals for a dedicated development finance subsidiary, the European Bank for Sustainable Development. This is intended to strengthen the development focus of the EIB, use existing resources and increase engagement with EU development policy stakeholders.
Discussions with EIB Governors and Board in coming days
President Hoyer will discuss the findings of the new report and proposals for European Bank for Sustainable Development with European Finance Ministers, the Governors of the EIB, in Luxembourg later this week and the EIB Board of Director’s next week.
The EIB is assisting the Madrid Region in its efforts to tackle the COVID-19 health emergency. The EU bank is providing a EUR 600 million loan on favourable terms to enable the authorities to adapt Madrid’s health facilities and cope with the additional health costs caused by the pandemic.
At a meeting of the European Battery Alliance on Tuesday 19 May, EIB Vice-President Andrew McDowell, confirmed the Bank’s commitment to supporting a strong, independent European battery industry. The alliance was initiated by European Commission Vice President Maroš Šefčovič in 2017, who also hosted the meeting.
The EIB, with the support of the European Commission, has granted a EUR 75m loan to ArcelorMittal[iii] for the construction of two ground-breaking projects at ArcelorMittal Ghent, Belgium, to considerably reduce carbon emissions by converting waste and by-products into valuable new products, helping to develop low-carbon steelmaking technologies, in line with the EU’s climate objectives.