The European Investment Bank has announced that it will boost financing for climate change mitigation and adaptation projects to 35% of its total investments in developing countries by 2020, up from 30% in 2018.
Announcing the corporate operational plan for 2019, EIB President Werner Hoyer noted that, 'digitalisation, SMEs, education and skills, sustainable energy and the modernisation of infrastructure are crucial for the European economy to keep pace with global competition'.
The bank intends to invest a total of around €70billion in 2019 in projects that will support the EU’s policy aims, with climate action at the forefront. The EIB is the world’s largest multilateral financier of climate projects, and has recently launched a lending review to further adapt its financing plans, and a three-month public consultation is underway.
Hoyer also announced the bank’s intention to lead the way globally in sustainable financing, noting that the Green Bond market – first launched by the EIB in 2008 – is now worth €450 billion. In 2018, a Sustainability Awareness Bond was launched and raised €500 million for investments to support the UN’s Sustainable Development Goals. The first round of projects to be funded will focus mostly on water, but will expand to the remaining SDGs in the next rounds.
The EIB is currently providing support to the European Union institutions as they negotiate a regulation to establish classifications and definitions for green investments and green bond standards, which it is hoped will influence global standards for a sustainable finance system.
Click here to access the EIB’s press release.