The European Investment Bank is joining seven other Multilateral Development Banks (MDBs) in committing to a just transition that supports countries and other clients moving towards net-zero emission economies.
The MDBs today released a joint statement outlining their commitment to five High-Level Principles for a just transition. The statement outlines how the MDBs will support countries and other clients in moving away from the use of fossil fuels and towards low greenhouse gas emissions and climate resilience in a way that shares the costs and benefits, while supporting and protecting communities, industries, and workers.
The MDBs will work with national development banks and other financial institutions to develop financing and policy strategies supporting a just transition that promotes economic diversification and inclusion.
EIB Vice-President Ricardo Mourinho Félix, who is responsible for Just Transition, stated: “To meet the Paris climate goals, we must switch to a green economy and create opportunities to ensure that no one is left behind. The EIB is partnering with fellow multilateral development banks on common principles to finance a Just Transition. We are currently working on a Just Transition proposal under our Climate Bank Roadmap, which will demonstrate how our lending, our financial instruments, but also our technical assistance and advisory services can support a green future for all of us, in particular in the regions and for the communities that have the furthest to go.”
The need for a just transition is set out in the Paris Agreement preamble, which cites “the imperatives of a just transition of the workforce and the creation of decent work and quality jobs in accordance with nationally defined development priorities”. This is at the heart of the climate work of the MDBs as they work together to align their activities with the long-term goals of the Paris Agreement.
The five principles are: delivering climate objectives while enabling socio-economic outcomes and building progress on Paris Agreement goals and the Sustainable Development Goals; support to move away from greenhouse gas emissions-intensive economic activities through financing, policy and advisory activities, and knowledge sharing; the mobilisation of public and private finance and enhanced coordination; support for affected workers and communities to mitigate impacts and increase opportunities; and transparent and inclusive planning, implementation and monitoring of just transition programmes that include relevant stakeholders and affected groups.
The European Union’s Just Transition Mechanism is an integral part of the European Green Deal. It supports a wide range of investments helping to address the social, employment, economic and environmental impacts of the transition towards carbon neutrality in the regions most affected by the transition. Inside the EU, the EIB Group will support all pillars of the Just Transition Mechanism. Outside of the EU, the EIB will support Just Transition in the context of climate action and social development, framing its approach in collaboration with the other MDBs.
EIB at COP26
The EIB will be present with a pavilion in Hall 4 of the Scottish Event Campus and run a series of side events on numerous topics. You will find the full agenda here.
The European Investment Bank is active in around 160 countries and is the world’s largest multilateral lender for climate action projects. The EIB Group has recently adopted its Climate Bank Roadmap to deliver on its ambitious agenda to support EUR 1 trillion of climate action and environmental sustainability investments in the decade to 2030 and to deliver more than 50% of EIB finance for climate action and environmental sustainability by 2025. Also, as part of the Roadmap, from the start of 2021, all new EIB Group operations will be aligned with the goals and principles of the Paris Agreement.
The European Investment Bank (EIB) and RLB NÖ-Wien will support investments in small and medium-sized renewable energy and energy efficiency projects in Austria. The EIB will make a framework loan of up to €100 million available to the Austrian regional bank, which will then create a credit portfolio of up to €200 million for financing clean energy projects.
The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has issued a guarantee to AS Citadele banka to support new lending to companies based in all three Baltic States. The Group’s first agreement with AS Citadele banka, the deal will provide capital relief for the bank and enable it to grant at least €460 million in additional loans and leases to businesses in the Baltics over the next three years. Against the uncertainty of the current economic climate and geopolitical situation, the agreement is especially welcome and affirms EIB Group’s status as a countercyclical investor.
The European Investment Bank (EIB) will lend €35 million to the Spanish multinational GAM (BME ticker: GALQ), which specialises in turnkey machinery solutions for industry, to make its rental fleet electric and develop more sustainable last-mile solutions for its subsidiary Inquieto. The loan will also be used to digitalise and develop Kirleo, the company’s vocational training school, therefore supporting digital skills development and training at the company. The EIB loan is backed by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe. This financing is in line with GAM’s strategic approach based on innovation and sustainability.