12/11/2024 | Press release | Distributed by Public on 12/11/2024 10:47
The European Investment Bank (EIB) approved €15.6 billion of new financing in areas ranging from security and defence to energy supply and flood protection.
The EIB Board of Directors agreed a €1 billion dedicated programme to provide credit and guarantees to finance investments and working capital of SMEs businesses active in the supply chains of Europe's security and defence industry.
"We are stepping up support to Europe's security and defence industry. During 2024 we have already enlarged the scope of dual-use projects eligible for financing and today we are launching a dedicated programme to support SMEs in the supply chain of large European contractors, " said EIB Group President Nadia Calviño. "Activity is picking up and we are confident that investment will accelerate during 2025 with a solid pipeline of European projects contributing to peace, security and strategic autonomy."
The Board of Directors also approved the EIB Group "Operational Plan" 2025-2027. This anticipates a maximum signature volume of up to €95 billion in 2025, a significant increase over previous years.
This ambitious and flexible plan, designed to be adapted to reflect changing priorities and needs. It includes record financing for higher risk activities and foresees the development of a Tech-EU programme to scale up venture debt capital investment and other instruments to support innovative companies and start-ups involved in clean technologies, artificial intelligence, chips, high-performance and quantum computing, health sciences and neurotechnology.
The Operational Plan outlines ways to strengthen Europe's competitiveness and better protect Europe from global economic and security threats. It focuses on delivery and impact along the eight core investment priorities laid out in the EIB Group's Strategic Roadmap endorsed by EU finance ministers.
Energy, water and anti-flood support
The Board also approved new financing to support energy, water, flood- protection and climate projects totalling €8.9 billion.
This includes €6.8 billion for energy investment, including district heating and private-sector renewable projects in France, urgent energy infrastructure reinforcement and repair in Ukraine, storage of renewable and battery energy in Greece, solar power in Italy, wind power in Cabo Verde and renewable energy in Latin America. It also covers electricity transmission and distribution in Spain, France, Portugal and the Netherlands as well as hydropower in Spain, Ghana and Burundi.
This part of the package includes a €1 billion initiative to accelerate flood recovery and strengthen resilience across Europe as well as to support small-scale sustainable development projects in northern France.
The Board also approved €1.2 billion of financing for water investment to increase treatment capacity in France, Hungary and Spain, reduce ocean pollution in Angola and Benin and increase water supply in Bangladesh and India.
Corporate innovation and business investment
New financing of €2.9 billion is earmarked for business innovation, business and agricultural investment. This includes research and development in the steel industry, lithium production for batteries using renewable energy and business investment in France, Ireland, the Netherlands, Poland and Cote d'Ivoire and agriculture in Spain and Cambodia.
Railways and roads
The Board approved €1.5 billion in financing for railway and road investment. This covers projects to acquire electric trains, upgrade coaches and replace outdated rolling stock on intercity routes in Poland.
The Board also backed funding for upgrading ports in Spain as well as airports in Germany and the Netherlands and for improving roads in Cyprus and Laos.
Background information
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.
The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400,000 companies and 5.4 million jobs.