EIB Group supercharges REPowerEU with €30bn in loans and equity

The EIB Group will pour into REPowerEU €30 billion ($29.9 billion) in loans and equity, which is expected to mobilise up to €115 billion ($114.6 billion) by 2027 in renewables, energy efficiency, grids and storage, EV charging infrastructure, and breakthrough technologies, such as low-carbon hydrogen.

The additional funds from the EIB Group (European Investment Bank, European Investment Fund) will be directed to renewables, energy efficiency, grids and storage, electric-vehicle (EV) charging infrastructure, and breakthrough technologies, such as low-carbon hydrogen.

In addition to raising expected energy-lending volumes for the next five years to unprecedented levels, the EIB’s board of directors also adopted a series of technical and policy measures aimed at accelerating the pace and maximising the impact of the new investment.

Key elements include higher upfront disbursements, longer tenors that will make EIB loans to the energy sector more attractive and a co-financing ceiling of up to 75% for projects contributing to the REPowerEU objectives, up from the typical 50% EIB limit per project.

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The board of directors has also introduced a temporary and exceptional extension of the exemptions to the EIB Group’s Paris Alignment for Counterparties (PATH) framework. The existing exemption under the EIB Group’s PATH framework for projects with high innovative content will be extended to include all renewable energy projects and EV charging infrastructure inside the EU.

This will allow EIB Group financing of a greater number of clean energy projects with a wider range of clients and utility companies contributing to the EU`s climate objectives and energy security. The extension will run until 2027, subject to a Climate Bank Roadmap review foreseen in 2025. Over this period the EIB will continue to engage with all its clients to support them in developing decarbonisation plans.

Put together, the package of additional financing, policy and technical flexibility, as well as dedicated support for high-risk investments, like pilot facilities, is hoped to help supercharge Europe’s transition to a more sustainable and secure future.