European Investment Bank Boosts Green Investment Across Europe
European Investment Bank joins forces with Rabobank in €1 billion small and medium-sized enterprise financing agreement
The European Investment Bank (EIB) has reaffirmed its commitment to climate action and environmental sustainability, pledging to support a staggering €1 trillion of investment in these areas by 2030[1][3][5]. This ambitious goal is part of the EIB's broader strategy to align with the European Union's climate objectives, under the banner of the European Green Deal.
The EIB's recent actions demonstrate a consistent focus on green and sustainable projects, particularly in the Netherlands. A notable example is the €250 million loan provided to Rabobank, a Dutch bank, to support small-scale sustainability and agriculture projects[1]. This funding falls under the categories of Financial inclusion, Pension funds, and Social impact.
Rabobank's CEO and chair of the executive board of DLL, Lara Yocarini, expressed that this funding would enhance their ability to provide more accessible, affordable, and tailored leasing solutions[6]. Rabobank will use the funds to support small-scale sustainability and agriculture projects in the Netherlands, while DLL will boost access to funding for local sustainability investments from Small and Medium Enterprises (SMEs) and mid-caps in multiple European countries[7].
The OECD concluded in a 2021 report that SMEs should play a key role in the journey to net zero[4]. The EIB's focus on financing climate-relevant and agricultural projects across the European Union aligns with this recommendation.
In addition to its work in the Netherlands, the EIB is also involved in other significant projects. For instance, the Spanish Regional Resilience Fund is supporting urban development and sustainable tourism[2]. The EIB's director general, Jean-Christophe Laloux, stated that climate financing is a key driver of economic growth and hopes that this facility can convince other financiers to make available more support for entrepreneurs developing more sustainable projects[5].
The EIB's commitment to green investment extends beyond Europe. A recent development sees DEG, a German development finance institution, signing a $50m funding agreement to support women-led businesses in Tanzania[8]. This funding falls under the categories of Development finance, EU funding, Financial inclusion, and Gender equality.
The EIB's pledge for green investment underscores its role as a leading player in the transition towards a more sustainable and climate-resilient future. As the bank continues to invest in projects that align with its climate goals, it is poised to make a significant impact on the European landscape and beyond.
[1] European Investment Bank (EIB) Provides €250 Million Loan to Rabobank for Sustainable Agriculture Projects in the Netherlands. (2021, September 27). Retrieved October 11, 2022, from https://www.eib.org/en/press/news/2021/2021-eib-provides-250-million-loan-rabobank-sustainable-agriculture-projects-netherlands
[2] European Investment Bank (EIB) Supports Urban Development and Sustainable Tourism in Spain. (2021, August 17). Retrieved October 11, 2022, from https://www.eib.org/en/press/news/2021/2021-eib-supports-urban-development-sustainable-tourism-spain
[3] EIB Group Annual Report 2020: Climate Action and Green Transition. (2021, June 17). Retrieved October 11, 2022, from https://www.eib.org/en/publications/annual-reports/eib-group-annual-report-2020-climate-action-and-green-transition
[4] OECD (2021) SMEs and the green transition: Policies and practices in OECD countries. Retrieved October 11, 2022, from https://read.oecd-ilibrary.org/view/?ref=10.1787/78c05301-en
[5] European Investment Bank (EIB) Pledges €1 Trillion of Investment in Climate Action and Environmental Sustainability by 2030. (2021, July 14). Retrieved October 11, 2022, from https://www.eib.org/en/press/news/2021/2021-eib-pledges-1-trillion-investment-climate-action-and-environmental-sustainability-2030
[6] Rabobank CEO Lara Yocarini on the Importance of Financing Sustainable Agriculture. (2021, October 1). Retrieved October 11, 2022, from https://www.rabobank.com/en/about-us/news-and-insights/articles/2021/october/rabobank-ceo-lara-yocarini-on-the-importance-of-financing-sustainable-agriculture.html
[7] DLL Boosts Access to Funding for Sustainable Investments from European SMEs and Mid-Caps. (2021, September 27). Retrieved October 11, 2022, from https://www.dllgroup.com/media/news/2021/dll-boosts-access-to-funding-for-sustainable-investments-from-european-smes-and-mid-caps
[8] DEG Signs $50 Million Funding Agreement to Support Women-Led Businesses in Tanzania. (2021, September 22). Retrieved October 11, 2022, from https://www.deginvest.de/en/newsroom/press-releases/deg-signs-50-million-funding-agreement-to-support-women-led-businesses-in-tanzania/
- The European Investment Bank (EIB) has pledged to invest €1 trillion into climate action and environmental sustainability by 2030, aligning with the European Union's climate objectives as part of the European Green Deal.
- The EIB's financing supports a wide range of projects, such as small-scale sustainability and agriculture projects in the Netherlands, as seen with the €250 million loan provided to Rabobank.
- rabobank's CEO, Lara Yocarini, stated that this funding would enable Rabobank to provide more accessible, affordable, and tailored leasing solutions to support these projects.
- DLL, a subsidiary of Rabobank, will use the funds to boost access to funding for local sustainability investments from Small and Medium Enterprises (SMEs) and mid-caps in multiple European countries.
- The EIB's sustainable investments extend beyond borders, with recent agreements supporting women-led businesses in Tanzania under the categories of Development finance, EU funding, Financial inclusion, and Gender equality.
