EIB grants €100 million loan to Holmen to expand wind power and strengthen Sweden’s clean-energy transition

Holmen

(IN BRIEF) The European Investment Bank is lending €100 million to Swedish forest-industry group Holmen to finance the expansion of its onshore wind projects in northern Sweden. The investment will increase renewable energy production to meet rising demand from energy-intensive industries and support Sweden’s net-zero emissions target for 2045. As one of Sweden’s most sustainable industrial companies, Holmen’s wind energy development will strengthen the country’s clean-energy infrastructure and contribute to the EU’s RePowerEU initiative for energy independence. EIB Vice-President Karl Nehammer highlighted the project as an example of how industrial progress and environmental sustainability can advance together.

(PRESS RELEASE) LUXEMBOURG, 3-Nov-2025 — /EuropaWire/ — The European Investment Bank (EIB) has announced a loan of 1.1 billion Swedish kronor (approximately €100 million) to the Swedish forest-industry group Holmen to accelerate its renewable energy expansion. The funding will finance Holmen’s ongoing development of onshore wind installations in northern Sweden, a region that plays a crucial role in meeting growing energy demands from emerging electricity-intensive industries. The project reinforces both Sweden’s and the European Union’s climate goals, contributing to the continent’s broader shift toward clean, resilient energy systems.

Headquartered in Stockholm, Holmen is one of Sweden’s largest forest owners and a major player in renewable materials and energy. The company operates across forestry, paper, paperboard, wood products, and renewable power generation — producing sustainable and recyclable materials that serve as low-carbon alternatives to fossil-based products like plastics, steel, and cement. Through this latest investment, Holmen aims to significantly expand regional renewable energy capacity, bolstering Sweden’s clean power supply and supporting its national target of achieving net-zero greenhouse gas emissions by 2045.

EIB Vice-President Karl Nehammer emphasized the project’s dual impact on sustainability and economic competitiveness, stating: “Sweden has long been a leader in renewable energy and sustainability. By financing Holmen’s expansion of clean power generation, we are strengthening Europe’s energy resilience while supporting one of the country’s most sustainable industrial players. This investment shows how the green transition and industrial competitiveness can go hand in hand.”

The initiative aligns with the EIB’s climate action and sustainable energy priorities and supports the European Commission’s RePowerEU initiative, which aims to fast-track Europe’s transition to clean energy while reducing dependence on imported fossil fuels. By enabling renewable growth in Sweden’s northernmost electricity zones, the project also enhances local energy security and supports the expansion of green industries in the region.

Background

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, the EIB finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, the capital markets union and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in the organisation’s Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the EU is directed towards cohesion regions, where per capita income is lower than the EU average.

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SOURCE: European Investment Bank