EU Investment Bank Pledges €2.7 Billion for Climate Change Adaptation Efforts
The European Investment Bank (EIB), the lending arm of the European Union, is making significant strides in its commitment to combat climate change. In 2021, despite efforts to cease lending to fossil fuel projects, the EIB generated approximately 45 million tonnes of carbon dioxide equivalent emissions across €380bn worth of investments. However, it's important to note that a portion of these emissions stemmed from emissions linked to the bank's legacy fossil fuel assets.
Ambroise Fayolle, EIB vice-president in charge of climate action and the environment, has emphasised the importance of climate financing in the EIB Group's overall financing. This focus on climate action is evident in the bank's recent investments.
In 2022, the EIB doubled its financing of climate adaptation projects compared to the previous year, investing more than €2.7bn. This investment aims to avoid 5.2 million tonnes of carbon dioxide emissions yearly. The bank's goal is to attract institutional investment with these climate transition projects.
One such investment was made in Rondo Energy, a venture aimed at decarbonisation projects. The EIB's increased climate financing is part of a trend where intergovernmental banks provide early funding for climate transition projects.
The EIB's efforts extend beyond Europe as well. In collaboration with Belgian logistics firm WDP, the bank invested €250m in green energy infrastructure across the continent. The aim is to scale up its climate financing to €1trn by the end of the decade, supporting the European Green Deal and the transition to climate neutrality by 2050.
The EIB Group signed financing deals worth €88bn in 2021, aiming to mobilize around €320bn in investment. The bank's statement of intent to prioritise climate action in its financing efforts is a promising step towards a greener future for Europe and beyond.
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