European Investment Bank Group Records Historic €2.91 Billion Financing for Swedish Projects in 2023

European Investment Bank Group Records Historic €2.91 Billion Financing for Swedish Projects in 2023

(IN BRIEF) In 2023, the European Investment Bank Group (EIB Group) provided a record-breaking €2.91 billion in financing for 32 projects in Sweden. The majority of funding (76.7%) was allocated to climate action and environmental sustainability initiatives, with notable support for projects like Northvolt’s gigafactory and the H2 Green Steel project. The EIB also backed social housing and innovation-driven ventures. With backing from the European Commission’s InvestEU initiative, the European Investment Fund (EIF) committed €445.6 million to stimulate economic growth. The EIB’s Vice-President highlighted the importance of financing amid geopolitical complexities and reiterated the bank’s commitment to a just transition to a carbon-neutral economy. The 2023 EIB Investment Survey revealed a need for continued focus on small businesses in Sweden.

(PRESS RELEASE) LUXEMBOURG, 15-Feb-2024 — /EuropaWire/ — In a landmark achievement, the European Investment Bank (EIB), the lending arm of the European Union, unveiled an unprecedented €2.91 billion in new financing contracts for projects in Sweden in 2023, representing a remarkable 0.53% of Sweden’s GDP. This substantial funding supported a diverse array of 32 projects across the nation, ranging from small and medium-sized enterprise (SME) financing to major ventures such as Northvolt’s gigafactory and the H2 Green Steel project.

With a resolute commitment to environmental sustainability, a staggering 76.7% of the total investment volume was allocated to projects driving climate action and ecological stewardship. Notable endeavors included support for Northvolt’s gigafactory, Ericsson, and the pioneering H2 Green Steel initiative.

Underpinning its mission to enhance societal well-being, the EIB Group extended its support to various social and innovation-driven projects. This included backing for social housing in Skellefteå and facilitating the procurement of 25 high-speed trains for intercity connections by the national railway company, SJ.

Emphasizing the significance of Swedish innovation, the EIB Group directed funding towards Exeger’s revolutionary Powerfoyle solar cell technology, demonstrating a commitment to advancing self-powered devices.

During her inaugural official visit to Sweden as EIB President, Nadia Calviño lauded Sweden’s pivotal role in spearheading investments in cutting-edge technologies for the green transition. She said “Sweden is leading some of our largest investments in new technologies for the green transition, including circular battery production and green steel. I look forward to exchanging views with Finance Minister Svantesson on how we can align our priorities more closely. I am glad that we can count on Sweden in providing concrete solutions for our common challenges.”

Bolstered by support from the European Commission’s InvestEU initiative, the European Investment Fund (EIF) committed €445.6 million in equity investments, guarantees, and inclusive finance transactions, poised to leverage over €2.8 billion in investments for the Swedish economy. These investments, including support for funds like Thrive and guarantees for Lisa&Friends and Ark Kapital, signify a concerted effort to stimulate economic growth and innovation.

Vice-President Thomas Östros emphasized the EIB’s pivotal role in ensuring access to financing for Swedish projects amidst a complex geopolitical landscape. He commented “Last year’s results show that Europe is more relevant than ever for Sweden. In a complicated geopolitical environment, the EIB made sure that Swedish projects could get the financing they needed. As the EU climate bank, we are committed to financing a just transition to a carbon-neutral economy. Although we know the transition won’t be easy, we are taking the risk on big projects that will have a long-term impact on our ecosystem because we know they are needed. We’re looking forward to engaging with Swedish businesses this year to see where our financing can be relevant, whether for big projects or small business financing.”

Furthermore, the 2023 EIB Investment Survey underscores the need for continued focus on small businesses, with a proportion of financially constrained firms standing at 7.2% in Sweden. While overall dissatisfaction with external finance remains low, addressing concerns regarding the cost of finance remains imperative to foster a conducive business environment.

The EIB Group looks forward to engaging with Swedish businesses in the upcoming year, seeking opportunities to provide relevant financing solutions, whether for large-scale projects or SME financing, to drive sustainable economic growth and prosperity.

Supporting documents and data

Background information

EIB

The European Investment Bank (ElB) finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

Media contact:

Tim Smit
t.smit@eib.org
+352 4379 – 89076

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank