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Add to Preferred SourcesCrucial new investment to strengthen green infrastructure, benefit biodiversity and adapt infrastructure to a changing climate has been unlocked by the Natural Capital Financial Facility, a EUR 400 million initiative intended to better protect Europe’s natural capital.
The unique scheme is now looking to expand cooperation with partners across Europe to enhance investment that better supports nature conservation and climate change adaptation.
Launched 3 years ago by the European Investment Bank and by the European Commission, the Natural Capital Financial Facility has backed new investment by nature-focused businesses and is supporting transformational schemes across Europe.
Unique financing available to support nature-based investment across Europe
Companies, public authorities and local financial partners can all benefit from dedicated new financing to support nature-based investment.
The first three projects to receive investment from the Natural Capital Financing Facility will support activities in approximately 12 countries. The European Investment Bank is now looking to continue rollout of the Facility to support new projects covering a broad range of nature-focused investment.
First project to encourage Continuous Cover Forestry in Ireland
New investment in sustainable forestry across Ireland will be supported by the latest operation under the Natural Capital Financing Facility. Irish commercial forests are amongst the most productive in the world and the new scheme will enable global institutional investors to support a more sustainable forestry model.
“The European Investment Bank is pleased to work with SLM Silva Fund to improve sustainable practices in Irish forests. The new EUR 12.5 million investment builds on the EIB’s recent support for forestry and agriculture in the country and will demonstrate how best practice in Ireland’s world-class forestry industry can take better account of the need to safeguard biodiversity, soils and landscapes, and help resist the threats associated with climate change.” said Andrew McDowell, Vice President of the European Investment Bank responsible for Ireland.
Successful partnership with national authorities to protect natural assets and enhance green growth
National financial institutions understand local investment challenges and priorities. A new EUR 15 million cooperation with the Croatian Bank for Reconstruction and Development (HBOR) under the Natural Capital Financing Facility is supporting new investment that will improve conservation of existing biodiversity, improve green infrastructure and strengthen resilience to climate change.
Mobilising public and private investment in natural capital
More than EUR 400 million of new nature conservation investment is expected to be supported by the EUR 125 million Natural Capital Financial Facility by 2021.
The Natural Capital Financial Facility supports both loan financing and equity participation by the European Investment Bank and is expected to mobilize additional investment up to four times of the original financing. The initiative is supported by the European Investment Bank own resources, and a EUR 50m guarantee and a EUR 10m technical assistance from the European Union LIFE Programme.
Original source: EIB
Published on 28 May 2018