EU Commission, EIB Announce €18bn Funds to Boost Climate Action Investment

 EU Commission, EIB Announce €18bn Funds to Boost Climate Action Investment

The European Commission and the European Investment Bank have announced €18 billion of financing under Global Gateway, Europe’s investment strategy for partner countries.

According to the partners, this will boost investment in Global Gateway’s priority areas – climate action, clean energy and connectivity – in Europe’s partner countries around the world. In particular, these projects will aim to help bridge the global climate finance gap and support prevention, adaptation and mitigation.

Speaking from the Global Citizen NOW Summit in New York, President von der Leyen said: “Europe is already the top provider of climate finance globally and of official development assistance.

“But more is needed to bridge the climate finance gap – and everyone needs to chip in. This is where our investment strategy Global Gateway comes into play. Global Gateway invests in the projects our partners need – from natural risks prevention to clean transport and energy infrastructure.”

The Global Gateway plan is the EU’s positive offer to partner countries to help them build resilience and long-term growth. This offer intends to close the worldwide investment gap through value-driven investments from the public and private sectors, while also supporting global economic recovery and the twin green and digital revolutions outside of the EU.

Global Gateway proposes to mobilize €300 billion in investments globally between 2021 and 2027 using a combination of grants, concessional loans, and guarantees to de-risk private sector investments.

Werner Hoyer, EIB President said: “Thanks to our solid partnership with the European Commission, EIB Global has already mobilised investments amounting to €31 billion under Global Gateway.

“This new financing package unlocks more EU support for projects that will make a real difference in partner countries and in some of the areas of the world most in need of transformation.”

The EU’s Global Gateway policy is on track to meet that objective. EIB Global, the European Investment Bank’s development arm, will contribute at least €100 billion to this goal. The European Investment Bank has already mobilized €31 billion in financing.

The Commission will give an EU budget guarantee to back up the EIB’s €8.3 billion loan to Global Gateway. EIB Global will now contribute an additional €1.5 billion to back up EIB lending of up to €10 billion. As a result, the European Commission and the EIB will jointly provide €18 billion in finance for initiatives aimed at promoting a green, digital, and equitable transition globally.

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