EIB Board approves €805mn in clean energy financing

The European Investment Bank (EIB) Board has approved €805 million ($857.4 million) in clean energy financing, including investment to integrate more renewable energy in Germany and for pumped storage in the Baltics.

The clean energy financing forms part of a larger, €4.3 billion ($4.6 billion) package of financing for regional transport and energy distribution, business investment in innovation and climate action, energy storage and improved water and waste treatment.

The energy segment investment will go into upgrading the German power system to enable the integration of additional renewable capacity, cater for increased energy demand from industry and for charging EVs and shield power infrastructure from extreme weather risk.

The Board also agreed backing for investment to expand grid energy pumped storage in the Baltics to enable increased use of intermittent wind and solar power and to enhance security of energy supply by reducing dependency on imports.

New streamlined financing to support small and medium scale renewable energy investment in Italy, in cooperation with a local financing partner, was also approved.

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“Access to finance is crucial for business growth, job creation and better services,” said EIB president Nadia Calviño in a release.

“The investment projects approved today will help European companies innovate, expand renewable energy use and improve public transport and local recycling, boosting the competitiveness of our economies.”

The larger package

Under the full EIB financing package, new projects are being backed across Austria, the Czech Republic, France, Germany, Hungary, Italy, Lithuania and Slovakia.

The EIB Board agreed to finance sustainable transport in France, including the deployment of electric buses and electric bikes, renovation and upgrading of train, tram and metro rolling stock, and accessibility improvements. The EIB will also purchase green bonds issued by the regional transport operator to finance the operation.

Financing was also approved for circular economy investment by a regional regulated utility body in Italy to upgrade drinking water distribution and protect water supply from extreme weather and to increase waste recycling capacity.

€3 billion ($3.2 billion) of financing will back business investment that will strengthen corporate research innovation, tackle financing gaps holding back the growth of midcap companies, support the expansion of activities in cohesion regions and boost private sector’s climate action.

EIB support for climate action investment by businesses in five central European countries, to help engineering, construction and manufacturing companies reduce energy use and costs, was also agreed.