Sunday, September 24, 2023
HomeFinanceEurope mobilises €1.1 bln for sustainable projects, supported by €150 mln in...

Europe mobilises €1.1 bln for sustainable projects, supported by €150 mln in InvestEU guarantees

On 24 March 2023, the InvestEU Investment Committee approved guarantees worth up to around 150 million euros in the form of framework agreements for the first EBRD operations, which are to follow, the European Commission said.

This is part of the InvestEU guarantee agreement worth up to 450 million euros between the European Commission and the EBRD (European Bank for Reconstruction and Development).

EBRD, backed by the InvestEU programme, will mobilise more than 1.1 billion euros in financing through direct investments or financial intermediaries to help the EU countries where the EBRD operates to reach their full green potential, the European Commission said.

“I welcome these first EBRD framework agreements, backed by InvestEU guarantees, that will support EU countries in central and eastern Europe and Greece to unlock their full potential for green growth and environmental sustainability. They will support green investments in the municipal, energy and transport sectors, boost competitiveness and help to increase socio-economic convergence. InvestEU plays a crucial role in leveraging investment across the EU and promoting a sustainable, inclusive and resilient economy. The EBRD is our important and reliable partner for achieving these priorities,” said Valdis Dombrovskis, European Commission Executive Vice-President for an Economy that Works for People. 

The new financing will aim to strengthen green and sustainable investments in the municipal, transport and energy sectors to address environmental challenges.

It will also contribute to the EBRD’s Green Cities programme, which is present in more than 50 urban areas. Additionally, it will aim to aid recovery from the COVID-19 pandemic, address infrastructure gaps and improve the competitiveness and socio-economic convergence of these EU countries.

Financial institutions in these countries will also be able to provide loans to finance investments in sustainable transport, energy efficiency, renewable energy and residential buildings.

“InvestEU is supporting investment across the EU that will help us to deliver on our common priorities. And no priority is more pressing than building a greener, more sustainable Europe. The approval of these guarantees shows the benefits of having the EBRD as an InvestEU implementing partner. Together, we can continue to ensure that InvestEU will contribute to making crucial investment projects a reality and help to deliver the green transition,” said Paolo Gentiloni, Commissioner for the Economy.

With backing from InvestEU, the EBRD will also support green investments in a broad range of industrial and infrastructure projects, focusing on private companies facing rising costs of newer technologies, higher perceived risks and a lack of available financing. Projects which are expected to be funded in this context include energy and resource efficiency in industries and commerce, circular economy and recycling initiatives, green buildings, sustainable food products, renewable energy, energy storage and grids, water and wastewater, and low-carbon and urban transport.

“I am very pleased that our partnership with the European Commission will unlock more sustainable and green investments across the EU. The EBRD will leverage its private-sector and policy expertise to contribute to a swift transition to a green future in the EU countries where we invest – in particular across the municipal, industrial and SME sectors of their economies,” said Odile Renaud-Basso, President of the EBRD.

Sign up for our newsletters

    Monthly newsletter – Delivering the most important energy stories of the month selected by our Editor-in-chief
    Weekly Oil&Gas roundup - All major news about the oil and gas industry, LNG developments, the upscaling of new gases and related EU regulations arriving in your mailbox every Monday.
    Weekly Renewables&Climate roundup - All major news about investments in renewable energy sources, environment protection, green hydrogen and new innovative ways to tackle the climate crisis arriving in your mailbox every Tuesday.

    Most Popular