As Hoyer explained during the EIB annual press conference, the year proved to be a “difficult yet crucial” one for EU institutions, and although the covid-19 crisis caused many businesses to struggle or fail, “the EIB Group was able to exceed expectations [and] demonstrate its role as a vital instrument of strategic autonomy for the EU and its member states, a vehicle that allows the union to act swiftly and with one voice” while “recognising the incontrovertible links between innovation, climate and development.”
Supporting covid crisis, health sector
In 2020, approximately one-third of the aforementioned funds were directed toward immediate crisis activities (€25.5bn). Support for SMEs and mid-caps remained a priority area, witnessing a €5bn increase to €30.6bn. A total €16.8bn was spent on environment investment, while infrastructure and innovation financing were at €14.9bn and €14.4bn, respectively.
As Hoyer explained, early in 2020 the EIB provided a €100m loan to German company BioNTech which, together with Pfizer, developed the first covid-19 vaccine. “EIB was partner with BioNTech long before the pandemic because we financed their cancer research and development… When they said this technology we have applied to the cancer medication might be applicable to covid medication and possibly vaccines, we were already prepared, we knew them, and this is why we were the first to be in that boat.”
Hoyer added that the EU bank has also been financing other developers working in diagnostics, treatments and vaccines, a testament to the “patient work we have done over the years, building expertise in this field that is second to none in the banking industry.”
The EIB estimates that as a result of its investment activities, some 280m people will receive covid vaccines, not to mention some 4.2m jobs will have been sustained, despite the crisis.
“The fight against the pandemic and its economic consequences will keep us busy in 2021. On top of the €25bn already provided, our Board has already approved close to another €25bn of financing for ailing companies and the health sector.”
Climate Bank Roadmap
In November 2020, member states greenlighted the EIB Group Climate Bank Roadmap, which sees it aligning the entirety of its financing activities with the goals set out in the Paris Agreement, and aims by 2025 for half of its annual financing to be devoted to green investment, thereby supporting objectives in the European Green Deal. For 2020, 40% of total financing was green.
Among the concrete steps the EIB has recently taken is the appointment this January of Kris Peeters as VP and member of the management committee, representing Benelux countries. Peeters, who gave a brief statement at the start of Tuesday’s press conference, has among other remits the oversight of mobility which he called “a key element in finding the right solutions for the Green Deal and for climate change”.
But as Hoyer noted, “the fight against climate change cannot wait until the pandemic is over. The covid crisis is not a reason to stop tackling the climate and environmental challenges facing humanity… We need massive investment in a green recovery.”