- The European Investment Bank (EIB) provided climate finance totalling more than €600 million in 2022 to accelerate the green transition in Hungary.
- EIB support last year included financing for residential building retrofits to improve energy efficiency and for electric train purchases.
- The EIB and EXIMBANK teamed up to provide €100 million in financing to SMEs and mid-caps to support new investments and climate action.
The European Investment Bank (EIB) and the European Investment Fund (EIF) signed €804 million in new financing for priority investments across Hungary last year.
In 2022, the EIB’s operations in the country included financing for energy, transport and innovation, and small and medium-sized enterprises (SMEs) and mid-caps. Three-quarters of total financing signed across these sectors supported climate action and environmental sustainability. In particular, the EIB backed the energy-efficient refurbishment of residential buildings and the installation of domestic renewable energy systems across the country. This project aims to make energy saving investments in homes and is part of Hungary’s Home Renovation Programme launched in 2021. It adds a second tranche to an EIB green loan signed in 2021 and supports different types of energy-efficient renovations and upgrades.
The EU bank also provided targeted support for new safer, more comfortable and eco-friendly regional buses and trains and to improve the country’s road network. In addition, the Bank made €100 million available to small and medium enterprises and mid-caps by partnering with EXIMBANK. The partnership will enable EXIMBANK to provide financing at competitive and accessible rates, expanding the number of potential beneficiaries.
“Our support for affordable energy-efficient homes, safer and cleaner public transport, and green financing for SMEs and mid-caps is helping Hungary accelerate the transition to a greener and more prosperous future that leaves no one behind,” said EIB Vice-President Teresa Czerwińska. “Looking ahead, the EIB Group is particularly focused on green investments in the railway sector, infrastructure development, energy, and financing for SMEs and mid-caps.”
EIB advisory services help Hungary attract more than €22 billion in investment
In 2022, EIB advisory services provided more tailored advisory support for public and private entities related to sectors such as climate change, transport, and research and development. In January 2023, EIB experts had 27 active advisory assignments, with more than 140 closed to date. Since 2006, JASPERS alone has helped prepare investment projects worth close to €22 billion in transport, water, health, research, circular economy and other sectors.
Background information
The EIB has been working in Hungary since 1990, channelling more than €24 billion in financing to projects supporting the country’s economy. The EIB finances sound investment contributing towards EU policy goals. The EIB’s key priorities are climate and the environment, development, innovation and skills, small businesses, infrastructure and cohesion. It works closely with other EU institutions to foster European integration, promote the development of the European Union and support EU policies in more than 120 countries worldwide.
Since its inception, the EIF has provided financing worth €289 million through 29 contracts in Hungary. These investments are expected to leverage approximately €2.5 billion in financing, and have so far supported more than 147 000 jobs. The EIF is part of the EIB Group. Its central mission is to support Europe’s microenterprises and SMEs by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF contributes to the pursuit of key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact and inclusiveness, skills and human capital, climate action and environmental sustainability.