InvestEU Approves €150 Million to Support Green Mobility and Energy
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More than €1.1 billion in finance to be mobilized in sustainable projects, supported by €150 million in InvestEU guarantees
- Under the InvestEU program, the European Bank for Reconstruction and Development (EBRD) and European Commission work together to help various EU countries in reaching their full green potential
- New investments to boost green and sustainable projects in the municipal, transport and energy sectors
- Funds to benefit Bulgaria, Croatia, Czechia, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia
The InvestEU Investment Committee has approved guarantees worth up to around €150 million in the form of framework agreements for the first EBRD operations, which are to follow. This is part of the InvestEU guarantee agreement worth up to €450 million between the European Commission and the EBRD.
The European Bank for Reconstruction and Development (EBRD), backed by the InvestEU program, will mobilize more than €1.1 billion in financing through direct investments or financial intermediaries to help the EU countries where the EBRD operates to reach their full green potential. It will support investment projects to improve sustainability and minimize environmental impact.
The new financing will boost green and sustainable investments in the municipal, transport and energy sectors to address environmental challenges.
It will also contribute to the EBRD’s successful Green Cities program, which is active in more than 50 urban areas to help accelerate their green transition. It will help recovery from the COVID-19 pandemic, address infrastructure gaps and improve the competitiveness and socio-economic convergence of these EU countries.
Furthermore, financial institutions in these countries will be able to provide loans to finance investments in sustainable transport, energy efficiency, renewable energy and residential buildings. This will contribute to energy savings and CO2 emission reduction in buildings and the transport sector.
Finally, with InvestEU backing, the EBRD will also support green investments in a broad range of industrial and infrastructure projects. These will focus on private companies facing rising costs of newer technologies, higher perceived risks and a lack of available financing.
See related article: The EIB and GeNeuro Sign a EUR 25 Million Credit Line Backed by InvestEU to Support Clinical Developments Against Long-COVID
Projects which are expected to be funded in this context include energy and resource efficiency in industries and commerce, the 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.
Executive Vice-President for an Economy that Works for People, Valdis Dombrovskis, 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.”
Commissioner for the Economy, Paolo Gentiloni, said: “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.”
EBRD President, Odile Renaud-Basso, said: “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.”
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