EU and EIB boost Central America’s clean energy transition with €1 billion funding under Global Gateway plan

EU and EIB boost Central America’s clean energy transition with €1 billion funding under Global Gateway plan

(IN BRIEF) EIB Global has unveiled a €1 billion financing package to advance renewable energy generation and integrate national electricity grids across six Central American nations—Costa Rica, Panama, Honduras, Guatemala, El Salvador, and Belize—under the EU Global Gateway Investment Agenda. The initiative, announced at the CELAC-EU Summit in Colombia, will finance grid modernization and renewable projects, with an estimated 85% of funds contributing to climate action. Backed by EU leaders including Nadia Calviño, António Costa, Teresa Ribera, Jozef Síkela, and Ioannis Tsakiris, the effort promotes cross-border power connectivity, cleaner energy, and regional sustainability while strengthening the EU’s partnership with Latin America and expanding opportunities for European companies.

(PRESS RELEASE) LUXEMBOURG, 10-Nov-2025 — /EuropaWire/ — EIB Global, the international development arm of the European Investment Bank (EIB), has announced a landmark €1 billion financing initiative to bolster renewable energy production and power grid integration across Central America. Revealed during the CELAC-EU Summit in Colombia, the funding falls under the EU’s Global Gateway Investment Agenda (GGIA) and represents a major step toward a more sustainable, interconnected regional energy system. The initiative will benefit Costa Rica, Panama, Honduras, Guatemala, El Salvador, and Belize by supporting renewable energy projects as well as transmission and distribution upgrades.

The “Electricity Integration of Central America” lending envelope will include up to six sub-operations—each valued between €150 million and €350 million—implemented through framework and investment loans with national utilities and regional institutions. It aims to strengthen the Central American Regional Electricity Market (MER), facilitating greater cross-border energy trade and stability across the region. Approximately 85% of the financing will contribute directly to climate action.

EIB Group President Nadia Calviño emphasized that the Bank’s role as Europe’s climate bank is to accelerate clean energy deployment and connectivity for millions. European leaders echoed the project’s strategic importance, including European Council President António Costa, who highlighted it as proof of the EU’s commitment to sustainable cooperation with Latin America, and European Commission Executive Vice-President Teresa Ribera, who underscored Europe’s role in promoting renewable energy and environmental standards.

European Commissioner for International Partnerships Jozef Síkela added that the initiative supports fair, sustainable, and resilient growth across Central America. EIB Vice-President Ioannis Tsakiris reinforced the Bank’s dedication to translating regional cooperation into tangible progress for people, economies, and the environment.

The program exemplifies the Team Europe approach, combining efforts from EU institutions, Member States, and private sector partners. It aims not only to strengthen grid reliability and interconnection but also to expand renewable capacity, reduce energy losses, and increase clean energy access, while opening new opportunities for European firms in Latin America’s fast-growing energy sector.

Background information

About EIB Global:

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of the Global Gateway. It aims to support around €100 billion of investment by the end of 2027. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world. Photos of EIB headquarters for media use are available here.

The EIB in Latin America and the Caribbean

The European Investment Bank has been providing economic support for projects in Latin America and the Caribbean since 2022, facilitating long-term investment with favourable conditions and providing the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993 and the Caribbean in 1978, it has provided total financing of more than €17 billion to support over 350 projects in 30 countries in the region.

EIB Global is a key partner in the implementation of the European Union’s Global Gateway Investment Agenda, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 65 years of experience in this domain.

Media contact:
Enrico Possenti
e.possenti@eib.org
+352 4379 – 82144

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank