The European Investment Bank (EIB) Group will deliver more than €75 billion (USD$87 billion) of energy transition-focused financing over the next three years, according to an announcement by the European Commission.
The new investment plans form part of the EU Commission’s new Clean Energy Investment Strategy, aimed at mobilizing funding to fast-track the clean energy transition, and improving the link between available private capital and Europe’s pipeline of energy projects. According to the Commission, the clean energy transition will require €660 billion of investment annually until 2030, rising to €695 billion between 2031 and 2040.
EIB Group President Nadia Calviño said:
“EIB Group investment is supporting an energy revolution in full swing, with projects that lower bills for businesses and households, create jobs across industries and ensure Europe is leading the way into tomorrow’s world. Clean power cuts the dependence of European economies on fossil fuel imports, and their volatile price swings, and cements the EU’s energy sovereignty and independence.”
According to the Commission, the new strategy is designed to promote effective access to private capital, targeted de-risking of investments, and structured cooperation with the financial community. Key measures outlined by the strategy include improving access to capital markets for electricity grid operators, with the EIB to set up a strategic infrastructure investment fund to provide equity to grid operators; supporting the ability of banks to lend to grid operators through increased use of loan securitization and intermediated lending for small operators, together with the EIB; and providing targeted public funds to de-risk innovative clean energy technologies and energy-efficiency investments, with the EIB stepping up support for new clean energy technologies and financing research on small modular nuclear reactors. The Commission also said that it will set up an Energy Transition Investment Council with the investment community to help support alignment of public policy with investor needs.
EU Commissioner for Energy and Housing, Dan Jørgensen, said:
“With our Clean Energy Investment Strategy, backed by over €75 billion of financing by the European Investment Bank, we will de-risk projects and attract a broader range of investors to help finance clean technologies, energy efficiency and modern infrastructure such as grids that will underpin the clean energy transition. This strategy is the step change we need in energy investments for our competitiveness, security, and decarbonisation.”
