President Hoyer speaks at the Green transition conference in Sofia

President Radev,

Deputy Prime Minister Karadzhov,

Commissioner Ferreira,

Ministers,

Members of the business community,

Thank you for inviting me to speak to you this morning.

It was very inspiring for me to start this session listening to the voices and the ideas of two young speakers.

I am more than ever convinced that the motivation, the resolve and the ideas of young generations will bring us to net-zero.

It is the collective duty of decision makers to leverage these ideas to make this happen.

 

Ladies and Gentlemen,

We are living in a time of crises.

• The health and economic crisis caused by the COVID-19 pandemic is not yet over.
• Russia’s invasion of Ukraine has created a humanitarian tragedy and prompted a rise in global energy and food prices.
•  And last, but by no means least, there is the climate emergency.  The window to limit global warming to 1.5°C is rapidly closing and we may have just a few years left to avoid the worst.

These challenges require massive investments, in our youth and businesses, in new technologies and in their large-scale adoption.

At the European Investment Bank we are fully committed to working with Bulgaria, the other EU Member States, the European Commission and the international community to invest, together, to overcome these challenges.

Just days after the invasion of Ukraine, the EIB, in cooperation with the European Commission, prepared an emergency solidarity package for Ukraine:  €668 million of financial support to cover the government’s most urgent financial needs – to buy food and medical supplies for its citizens.

And last month, our board approved a €4 billion credit line to help those communities in the European Union hosting Ukrainian refugees to ensure they can offer vital social services – housing, schools, hospitals.

More support is on its way – to both Ukraine and countries in its neighbourhood, in cooperation with the European Commission.

Russia’s aggression

… has disrupted the world’s energy system, causing economic and social hardship, and intensified energy security concerns.

… has brought to the forefront Europe’s dependence on gas, oil and coal imports from Russia.

… and has also revealed a massive investment gap in Europe’s energy sector.

Energy is not only at the centre of the climate debate, but has become a matter of national and European security – on top of being key for the economic competitiveness of Europe.

So, we need to act … urgently and with resolve.

The good news is that investments towards a climate neutral economy are also key to make us independent from Russia’s energy.

The energy transition makes our energy supply not only cleaner, but also cheaper and safer.

So, we need to invest more:

• in renewable energies. Solar and wind have become cheaper than fossil fuels in many instances.
• but also in energy efficiency. The cheapest energy is the energy we don’t need.

 

As the EU climate bank, the EIB has provided financing of almost €10 billion to energy efficiency and renewable energy projects across the European Union during the last year alone.

We know we need to do more:

• to adapt to those climate impacts that cannot be avoided.
• to develop, bring to scale and make affordable the technologies Europe, and the world, need to get to net-zero.
• Hydrogen, batteries, advanced biofuels, digital solutions …

 

This transition will bring huge opportunities.

• It will contribute to the fight against the climate change and make our air cleaner.
• It will increase energy security and ultimately contribute to our economies’ competitiveness.

 

But we cannot afford to be blind about the challenges it will bring along. Not every coal miner will become a clean-tech entrepreneur.

The green transition will not succeed if we do not support businesses and municipalities in fossil fuel-dependent sectors and regions.

This is why we are glad to be the main partner of the European Commission for the implementation of the Just Transition Mechanism.

This is a key objective of the European Investment Bank Group. We will continue to explore ways to support Bulgaria in Just Transition projects with technical expertise and finance.

The European Investment Advisory Hub and the Joint Assistance to Support Projects in European Regions, known as JASPERS, can help companies and authorities design and implement effective projects and make the most of funding available from the European Union.

In the area of sustainable transport, the EIB has already supported the expansion of Sofia’s metro system with €260 million. We are currently working on a new loan for €200 million to finance new sections of the metro in the Bulgarian capital. This is a key project for sustainable urban mobility. It will contribute to less traffic, more convenient travel and better air quality, and play a transformational role for Sofia.

At the EIB, we will provide more support through financial instruments over the period of the current EU budget. These instruments include the new InvestEU programme and the Just Transition Mechanism.

 

Ladies and Gentlemen,

The European Investment Bank Group is a key partner of the European Commission for the implementation of the European Green Deal in Bulgaria.

As the EU climate bank, we will work closely with the government, cities, businesses and financial institutions to accelerate the green transition and regional cohesion in Bulgaria, by financing projects that make life better for everyone.

This means more investment in sustainable transport, climate action and energy security and support for innovation and small and medium-sized businesses.

We are open for business and I encourage you to contact the EIB Sofia office.

Thank you and I wish you a very successful conference.