The Board of Directors of the European Investment Bank (EIB) has approved the financial institutions’ 2020-2025 Climate Bank Roadmap.
EIB’s board of directors is made up of representatives from EU member states.
The roadmap sets out in detail how the EIB will support the objectives of the European Green Deal and sustainable development outside the European Union.
The roadmap will see the EIB:
- Directing 50% of its annual financing to green investments through 2025, up from just over 30% today.
- Providing more green advisory and financing of innovative low-carbon technologies.
- Supporting green capital markets, climate change adaptation and Just Transition projects.
The Climate Bank Roadmap ensures that the EIB Group will make a decisive contribution to a green recovery from the COVID-19 crisis, supporting the objectives of the European Green Deal, including a Just Transition for regions that depend on carbon intensive industries.
The EIB will come forward with a detailed Just Transition plan in 2021, once the EU Just Transition Mechanism is agreed.
Further actions include:
- Direct €1 trillion in investment for climate action and environmental sustainability in the decade to 2030.
- EIB Group is now aligning all financing activities from end of 2020, with goals of the Paris agreement. This makes EIB the first multilateral development bank to be Paris aligned.
The EIB Group will no longer support projects expanding agricultural activity into high carbon stock areas, airport capacity expansions, and new conventional energy-intensive plants.
In 2021, the EIB will come forward with an Adaptation Plan (in support of the forthcoming EU Adaptation Strategy), and a new Transport Lending Policy (in response to the European Commission’s smarter, more sustainable transport strategy).
EIB vice president Ambroise Fayolle responsible for climate action and environment, said: “2021-2030 is the critical decade to mobilise the trillions of investment that are required to limit global warming to 1.5 degrees, and protect the environment and biodiversity. As requested by the European Council and the EU member states, I am proud to announce that the EIB Group has achieved an important milestone in its transformation to become Europe’s fully-fledged climate bank.
He added: “The unanimous decision by our shareholders sends an encouraging signal about Europe’s capacity to deliver on climate action and environmental sustainability. The EIB builds upon a very strong track record. It has been Europe’s main instrument in financing climate action for years, and we are on track to deliver on our commitment to invest $100 billion between 2016 and 2020.”