EIB backs 9,3-billion-euro development plan in Europe and beyond
On November 15th, 2023, the European Investment Bank (EIB) Board of Directors approved a 9,3-billion-euro plan to support sustainable transport, corporate innovation, water, and urban infrastructures in Europe and all over the world. This includes reconstruction plans in Ukraine.
The plan is allocated as follows:
- 3,3 billion euros for transport projects
- 3,1 billion euros for business investment and corporate innovation
- 2 billion euros for energy and water
- 550 million euros for urban development
- 450 million euros to support Ukraine's reconstruction
The approved 3,3 billion for transport investment includes funding for expanding Madrid Atocha railway station with an underground pass-through station, acquiring new rolling stock for Madrid's metro, and constructing a road and rail tunnel to alleviate congestion. Additionally, the EIB will finance new trains for Cologne's regional rail network and upgrade trains and lines in southwestern France.
Corporate research and business innovation projects
The EIB reserved 3,1 billion euros for corporate research, development, and business investments, including advancing electric vehicle technology and software, recycling vanadium waste in Finland and Sweden, and developing solid-oxide electrolyzers in Germany for increased hydrogen production. Additionally, the funding supported digitalizing pharmaceutical production in Romania and specialized industrial engineering in Spain. The EIB also facilitated long-term financing for business investment and financial inclusion in Moldova and dedicated support to enhance microfinance access for rural women-owned micro-businesses in Uganda. New support for business investment, including improving energy infrastructure, agriculture, digitalisation, and innovation, was agreed with financing partners in Croatia, France, and Italy.
Energy and water
The plan includes 2 billion euros for energy and water investments across Europe and globally. This includes funding renewable energy and battery storage projects in several European countries, as well as geothermal innovation, district heating, and small-scale wind and solar projects. Additionally, the EIB approved financing for nuclear safety improvements in Romania. Moreover, the investment will enhance electricity access for 750,000 rural residents in northern Cameroon and support sustainable energy schemes in Rwanda and Bhutan. Finally, the EIB backed projects to modernize water supply and sewage services in Belgium, Germany, and Brazil.
The EIB granted 450 million euros to aid Ukraine's recovery from the war and provided streamlined financing for crucial water infrastructure. Of this, 250 million will support essential services for internally displaced individuals, aiding in constructing and repairing social housing, district heating systems, hospitals, schools, roads, and bridges nationwide. Furthermore, 200 million will be allocated to restore water supply systems in war-affected areas, enhancing access to water services and centralized wastewater collection and treatment.
The Group Climate Bank Roadmap
The EIB Board of Directors also endorsed the midterm assessment of the Group Climate Bank Roadmap, a comprehensive review tracking the progress towards its outlined goals in line with regulatory and market changes. It set ambitious objectives, such as backing 1 trillion euros in green investments by 2030, aligning all operations with the Paris Climate Agreement, and allocating at least 50% of annual financing to climate action by 2025. The midterm review confirmed the EIB Group’s advancement toward these targets, with climate action financing reaching 58% of total funding in 2022.
Despite the ongoing geopolitical challenges, particularly the Ukraine crisis and subsequent energy issues, the EIB Group reinforced its commitment to the green energy transition by boosting its REPowerEU support package by 50% to 45 billion euros in July 2023. This aims to facilitate 150 billion in investments by 2027, fostering the green energy transition, enhancing energy security, and promoting innovative technologies crucial for a net-zero economy.