The European Investment Bank Group, comprised of the European Investment Bank and the European Investment Fund, has backed the European Commission’s green deal industrial plan for the net-zero age with a multi-billion euro funding package.
During their July meeting in Luxembourg, the EIB’s board of directors voted to bolster funding for projects under the umbrella of REPowerEU, the EU’s plan designed to end Europe’s dependence on imported fossil fuels. An extra €45bn was added to the original pot, signifying a 50% increase from the initial €30bn package announced in October 2022.
As part of the plan to enhance financial support for the EU’s manufacturing sector, the EIB board also broadened the range of sectors eligible for funding. This will encompass industries focusing on state-of-the-art net-zero technologies, as well as the extraction, processing and recycling of crucial raw materials.
The additional funding, which is anticipated to be fully utilised by 2027, is projected to stimulate over €150bn of investment in these targeted sectors, stated a .
EIB president Werner Hoyer underscored the bank’s commitment to propelling Europe’s industrial competitiveness and facilitating a swift and just transition to net-zero. “We are deploying the full range of our available financial firepower to support Europe’s industrial competitiveness, manufacturing and the rollout of critical technologies that will lead us to a swift and just transition to net zero,” he stated.
The EIB’s additional support is set to benefit sectors engaged in manufacturing advanced technologies like solar photovoltaic and solar thermal technologies, onshore and offshore wind energy, battery storage, heat pumps, geothermal technologies, electrolysers, fuel cells, sustainable biogas, carbon capture, storage and grid technologies.
The EIB’s board also approved €10bn in new loans for a slew of projects, including new wind and solar power generation in Spain and Austria, grid upgrades in Italy, and an electric vehicle battery cell manufacturing Gigafactory in France.
In addition, the board greenlit a €400m support package to refurbish drinking water, wastewater treatment and stormwater infrastructure and basic services in southeastern Turkey, regions severely ravaged by the February 2023 earthquakes.
Beyond the EU, the board endorsed financing for a new electricity interconnector between Ecuador and Peru, and streamlined financing for small-scale clean energy and green transition projects across Africa.