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.
Climate financing by seven of the world’s largest multilateral development banks (MDBs) accounted for $61.6 billion in 2019, of which $41.5 billion (67%) was in low- and middle-income economies, according to the 2019 Joint Report on Multilateral Development Banks’ Climate Finance. The study expands the scope of reportingfor the first timeto all countries of operation. It now provides data on MDB climate finance commitments beyond those directed solely at developing and emerging economies, but with the focus remaining on low- and middle-income countries.
The EIB is set to support the development of new treatments for progressive vascular calcification, an area of significant unmet medical need where there are currently no approved treatments. To this end, the EU bank will provide a €20 million loan to Spanish biopharmaceutical company Sanifit, which is developing novel treatments in two disease indications linked to calcification.
The EIB and Italian biotech company EryDel SpA have signed a contract to provide a loan of €30 million to EryDel. This late-stage biotech company aims to develop and commercialise therapies based on its proprietary RBC technology for the treatment of rare diseases. The EU bank’s loan is backed by a guarantee from the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe under which the EIB and the European Commission are working together as strategic partners, with the EIB’s financing operations boosting the competitiveness of the European economy.