In a challenging year, the European Investment Bank Group (EIB) exceeded its own targets, signing a record number of 1 095 operations and increasing financing volumes to EUR 72.22 billion.
This was in spite of uncertainty and delays linked to Brexit and to the need for the remaining EU Member States to come to an agreement, last spring, over the replacement of the UK’s share of EIB capital. The EIB Group also approved ambitious new climate targets and a revised energy lending policy that put it at the forefront of the fight against climate change.
“The EU bank has performed well in the markets, proving that there is a strong demand for its products. It has also won support from the Member States in addressing and resolving the Brexit challenge. Now, as Europe puts a strong emphasis on climate action, the EU bank has decided to dramatically strengthen its role as the European Union’s climate bank. Contrary to what some believe, there is no trade-off between climate action and competitiveness. On the contrary: green is more, not less, and we could increase our efforts on climate while growing our support for investment in Europe’s future,” EIB President Werner Hoyer said at the EIB Group’s annual press conference in Brussels.
The financing provided by the EIB Group in 2019 supports the total investment of around EUR 280 billion in Europe and worldwide, an increase of EUR 50 billion compared to 2018.
A record 31% share of this financing went into climate action projects, transforming Europe’s energy markets, but also mitigating the effects of climate change and helping people in greatly affected areas to adapt.
“We are ramping up our climate action. The EU bank plays an integral part in the European Green Deal announced by the new President of the European Commission, Ursula von der Leyen,” Hoyer said.
Ramping up climate action
The EIB aims to dedicate 50% of its financing to climate action and environmental sustainability as of 2025. It expects to unlock more than one trillion euros in green finance by 2030. And it will align all its activities with the Paris Agreement already by the end of this year. Under its new energy lending policy, the EIB has decided to stop financing conventional fossil-fuel projects as from the end of 2021.
No trade-offs between financing climate action, cohesion and innovation
The EIB Group remains strongly committed to supporting Europe’s competitiveness in the global economy. EUR 25.5 billion went to small and medium-sized companies in the past year, providing much-needed support to entrepreneurs that form the backbone of the EU’s economy and still often struggle to access finance. The EU bank made available EUR 14.4 billion for innovation, supporting new technologies and helping to build the industries of the future. EUR 15.7 billion financed the construction of modern infrastructure to improve people’s lives.
Operations signed in the last year alone will provide power supply for 7.4 million households and fresh drinking water for 10 million households around the world. They will support 4.4 million jobs in small and medium-sized enterprises and improve mobile communication services for 117 million people and health services for 12 million citizens.
Improving lives and tackling climate change around the world
Last year, the EIB Group provided 12% of all financing – EUR 8.8 billion – outside the EU for a wide range of projects targeting female entrepreneurs, renewable energy, telecoms infrastructure, and other sectors of the economy. 43 of the countries where the EIB has active operations are defined as fragile states, those most in need of investment.
Over the last 10 years, EIB financing outside the EU totals EUR 69.6 billion, of which EUR 21.8 billion has gone to Africa.
EIB attracts money from sustainable investors around the world
The EIB Group funds its activities on the global capital market and benefits from an “AAA” rating. In the last year, it borrowed EUR 50.3 billion from international investors, less than the year before. It continues to sets standards, especially in the market segments for green and sustainability bonds. The EU bank issued its first green bond in 2007 and today is still the market leader in this segment with a volume of EUR 26.7 billion issued.
Read and download the: EIB Group Operational Plan 2020
Original source: EIB
Published on 30 January 2020
