EIB Global introduces €187 million Innovation and Green Transformation Facility to support Western Balkans SMEs

EIB Global introduces €187 million Innovation and Green Transformation Facility to support Western Balkans SMEs

(IN BRIEF) EIB Global has announced the Innovation and Green Transformation Facility (IGTF), a €187 million programme combining EIB loans and EU grants to support private sector sustainability and innovation in the Western Balkans. The initiative, aligned with the EU Economic and Investment Plan and the New Growth Plan, will provide affordable financing through local banks for projects in digitalisation, green transition, climate resilience, and sustainable industries such as agriculture and tourism. In addition, the IGTF will deliver technical assistance to SMEs, mid-caps, incubators, and research centres to strengthen investment readiness and foster innovation ecosystems. EIB Global representative Björn Gabriel said the facility will act as a catalyst, empowering local businesses to compete globally while driving inclusive growth. The first deployments are expected in early 2026.

(PRESS RELEASE) LUXEMBOURG, 8-Sep-2025 — /EuropaWire/ — EIB Global has unveiled the Innovation and Green Transformation Facility (IGTF), a new initiative designed to boost private sector competitiveness and sustainability across the Western Balkans. The facility aligns with the EU Economic and Investment Plan and the New Growth Plan for the Western Balkans, further embedding the region into the EU’s Green and Digital Agendas.

The IGTF combines €170 million in EIB loans with €17 million in EU grants under the Western Balkans Investment Framework, making affordable financing available to micro, small and medium-sized enterprises as well as mid-caps. Partnering with local financial institutions and commercial banks, the initiative will support investments in areas such as digitalisation, cybersecurity, product development, sustainable agriculture, ecosystem-based tourism and climate resilience.

Beyond financing, the facility includes targeted technical assistance to improve investment readiness and build long-term capacity. This support extends to incubators, science parks and research centres, with tailored mentoring, training and staff exchanges aimed at nurturing robust innovation ecosystems. EIB Global and the United Nations Development Programme (UNDP) in North Macedonia are exploring a dedicated partnership to scale this complementary support across the entire Western Balkans.

Björn Gabriel, EIB Global representative to North Macedonia, described the facility as a driver of transformation: “The IGTF is more than a financing tool: it’s a catalyst for transformation. By combining financial incentives with targeted technical support, the facility empowers businesses to innovate, grow sustainably and align with EU standards. It aims to enhance the competitiveness of local enterprises, stimulate exports and promote sustainable employment and inclusive growth.”

Deployment of the Innovation and Green Transformation Facility is expected to begin in the first half of 2026.

Media Contact:

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank