The project, involving the construction and operation of a new biomass boiler at the Figueira da Foz pulp and paper plant, is a major step in the company's recent decarbonisation strategy
Funds are provided under the Investment Plan for Europe
The European Investment Bank (EIB) will support The Navigator Company, a major Portuguese industrial group and Europe’s leading pulp and paper manufacturer, with a €27.5 million loan for the construction and operation of a new biomass boiler at their integrated mill facility located in Figueira da Foz, a cohesion region in Portugal.
This project is the first major step of The Navigator's decarbonisation strategy, launched recently with the aim of making the company carbon neutral by 2035 (15 years ahead of the EU target of 2050) in line with the Paris Agreement, the EU Green Deal and Portugal’s Roadmap to Carbon Neutrality.
Replacing the existing equipment with a new biomass boiler is part of the company’s investments for offsetting carbon emissions and is seen as crucial for preserving and improving its competitiveness and market presence in a cyclical business sector, especially now amid the far-reaching economic consequences of the COVID-19 pandemic.
The Figueira mill only uses feedstock from forests that are either certified by internationally accredited forest certification systems or considered to be controlled wood. This project will also contribute positively to supporting rural economies and employment in Portugal through the further development of a forest and bioeconomy value chain.
“We are very pleased to support the Navigator Company’s ambitious decarbonisation strategy and their efforts in modernizing production to make it more sustainable and to strengthen their competitiveness. While boosting economic recovery from COVID-19, this project will promote circular economy and help the EU reach its objective of climate neutrality by 2050” said EIB Vice-President Emma Navarro, responsible for the operations in Portugal as well as for the Bank’s climate action. “Climate action and cohesion, along with sustainable growth, continue to be key priorities for the EIB, even amid this pandemic. We are glad to support a project that is strongly contributing to these goals in Portugal and in Europe”.
This is the eighth transaction between the EIB and The Navigator Company with the last operation signed in 2018. In that project, the EIB Group supported The Navigator Company's investments in innovation and climate action, such as the financing of the modernisation of the Figueira da Foz mill and the upgrade of their production technologies. As a result, energy consumption and the amount of chemicals used were reduced, as were greenhouse gas emissions thanks to fossil fuels being replaced with the greater use of renewable biomass energy.
The EIB is the world's largest multilateral provider of climate finance. Its goal is to be a leader in mobilising the finance needed to limit the average global temperature increase to 1.5°C compared to pre-industrial levels to meet the Paris Agreement’s objectives. On 14 November 2019, the EIB Board of Directors approved its new climate objectives and the new energy lending policy. The Bank will gradually increase its financing for climate and environmental objectives by up to 50% by 2025, with the goal of ensuring that the EIB Group mobilises at least €1 trillion in the critical decade between 2021 and 2030 to promote investments helping to meet these objectives. It also announced its intention to align all EIB Group activities with the Paris Agreement. To this end, the EIB will cease financing fossil fuel-based projects from late 2021.
The outbreak of COVID-19 in Europe had immediate and wide-ranging consequences for investment: according to the new edition of the EIB Investment Report 2020/2021 “Building a smart and green Europe in the COVID-19 era”, EU firms are likely to reduce investment by at least 25% in the year following the crisis. The report also shows that in a post-pandemic “new normal”, investment in digitalisation, innovation and climate will be more important than ever before. Without such investment, large sections of Europe’s economy risk falling behind. However, the European Union now has the opportunity to build on its leadership in green and digital technologies to recover from the pandemic, manage the climate transition and maintain its ability to compete in the global technology race.
2020 a été une année d’activité record pour le Groupe BEI en France avec un peu plus 10 milliards d’euros de financements dédiés à l’investissement dans les secteurs public et privé. Le volume d’activité du Groupe BEI en France en 2020 s’est réparti de la façon suivante : 8,9 milliards d’euros issus de la BEI et 1,2 milliards d’euros du FEI.
In the year of the worst global health and economic crisis for generations, the European Investment Bank (EIB) Group rapidly redirected its business to fight the COVID-19 pandemic and its economic consequences on all fronts. It increased financing volumes to €76.8 billion, exceeding its own targets. A third of these funds, €25.5 billion, went into the immediate crisis response that started with a first package in March. Most of it went to small and medium-sized businesses to avoid insolvencies and job losses, especially in countries that did not have the budgetary means for massive national rescue packages.