European Investment Bank and Commission aim to bridge global climate finance gap with €18bn financing for partner countries

European Investment Bank and Commission aim to bridge global climate finance gap with €18bn financing for partner countries

(IN BRIEF) The European Commission and the European Investment Bank have jointly announced an investment of €18 billion under the Global Gateway initiative, Europe’s investment strategy for partner countries. This investment will focus on the priority areas of Global Gateway, namely climate action, clean energy, and connectivity in Europe’s partner countries worldwide. The projects financed under this initiative aim to address the global climate finance gap, promote sustainable development, and support prevention, adaptation, and mitigation efforts in partner countries.

(PRESS RELEASE) LUXEMBOURG, 28-Apr-2023 — /EuropaWire/ — The European Investment Bank (EIB), the lending arm of the European Union, has announced a substantial boost to Europe’s Global Gateway investment strategy for partner countries, with the allocation of €18 billion in financing from the EIB and the European Commission. The funding will be directed primarily towards supporting Global Gateway’s priority areas, including climate action, clean energy, and connectivity, in partner countries around the world. This significant investment is expected to make a meaningful contribution to sustainable development, climate change mitigation and adaptation, and global efforts to bridge the climate finance gap.

Through these investments, Global Gateway aims to address the urgent need for climate finance and support prevention, adaptation, and mitigation efforts. The projects financed by this initiative will help bridge the global climate finance gap, promote sustainable development, and advance environmental stewardship in Europe’s partner countries.

Speaking from the Global Citizen NOW Summit in New York, European Commission President Ursula von der Leyen said: “Europe is already the top provider of climate finance globally and of official development assistance. But more is needed to bridge the climate finance gap – and everyone needs to chip in. This is where our investment strategy Global Gateway comes into play. Global Gateway invests in the projects our partners need – from natural risks prevention to clean transport and energy infrastructure. And this €18 billion in financing will get even more such projects off the ground, swiftly. Global Gateway will help advance the climate transition around the world, improving people’s lives and making our partners more resilient.”

EIB President Werner Hoyer said: “Thanks to our solid partnership with the European Commission, EIB Global has already mobilised investments amounting to €31 billion under Global Gateway. This new financing package unlocks more EU support for projects that will make a real difference in partner countries and in some of the areas of the world most in need of transformation. We believe that the Global Gateway initiative will greatly contribute to the achievement of the Sustainable Development Goals, to which we remain fully committed and strongly aligned with partners worldwide”

Background

The Global Gateway strategy is the EU’s positive offer to partner countries in support of their resilience and sustainable development. This offer aims at narrowing the global investment gap with value-driven investments from public and private sectors, supporting global economic recovery and accompanying the twin green and digital transitions outside the EU.

Across the world, Global Gateway aims to mobilise €300 billion in investments between 2021 and 2027 with a mix of grants, concessional loans and guarantees to de-risk private sector investments.

The EU’s Global Gateway strategy is on track to deliver on that target. EIB Global, the development arm of the European Investment Bank, will mobilise at least €100 billion of this target. Financing from the European Investment Bank has already mobilised €31 billion.

The Commission will provide an EU budget guarantee to back €8.3 billion of EIB lending to Global Gateway. EIB Global will now provide an additional €1.5 billion to back up to €10 billion of EIB lending. Therefore, together, the European Commission and the EIB will jointly deliver financing of €18 billion for projects aiming to support a green, digital and fair transition globally.

The EU and its Member States remain the world’s leading donor, providing 43% of global Official Development Assistance in 2022. The collective ODA increased, reaching €92.8 billion in 2022, up from €71.6 billion in 2021.

Media contact:

Matteo Maggiore
European Investment Bank
Communication Department
m.maggiore@eib.org
+352 437984196
+352 437961000

SOURCE: European Investment Bank