the achievements of the European Investment Bank during the last year at a time when every week – every hour – is crucial. As the EU bank pits its expertise and financing power against COVID-19, we are also mindful of a critical decade ahead in the fight against climate change. Though there are many who doubt whether coronavirus and climate change can be addressed simultaneously, we are confident that this is an absolute necessity. The immediate battle to return our economies to health must also lay the foundations of a sustainable future.
In 2019, the Bank invested in Europe’s competitiveness, in new technologies and innovation that will secure our quality of life for coming generations — and increase our prosperity. The growing proportion of our work aimed at tackling global warming proves that climate action is a business opportunity, as well as an existential necessity. The new threat of COVID-19 makes this report even more timely. We signed several deals last year that demonstrate our engagement in the fight against disease — a commitment that has become still stronger with our central role in Europe’s coordinated coronavirus response.
We laid down an ambitious marker last year. We promise to dedicate 50% of our financing to climate action and environmental sustainability as of 2025. Everything we do will be fully aligned with the Paris Agreement. After all, it would make no sense to invest 50% in climate and the environment, while using the other 50% to finance projects that harm the environment.
This is just as true of the coronavirus crisis. Every economic shock accelerates long-term structural shifts. Delivering on our increased climate and environmental sustainability ambitions is the best way for the European Investment Bank to help the economy recover from the pandemic. For example, the energy transition can contribute to the recovery by creating more jobs, new and fast-growing industries, more competitiveness and less energy dependence.
Last year we approved our new energy lending policy. This includes a commitment to end investment in conventional fossil fuel projects from the end of 2021. The European Investment Bank is the first international financial institution to make such a pledge. This is a striking example of European leadership on the climate front.
As the EU bank, the European Investment Bank acts as the financial arm of EU policy. In the great European climate action project now under way, we are in close partnership with the European Commission and all Member State governments. The work highlighted in this report demonstrates the expertise that makes us a key pillar of the European Green Deal announced by the Commission in January 2020.
Unique reach
Climate action does not mean overlooking other areas of our work. This report demonstrates that, to be effective, climate action must operate within the spheres of cohesion, innovation, SMEs and infrastructure. If it fails to do so, quite simply it fails. Climate action, for example, also means job creation. Our Investment Report 2019-2020 forecasts that green energy specifically will create around 500 000 jobs in Europe over the coming decades.
The cohesion work that has been a central focus of the Bank since 1958 takes on a new dimension with our expanded climate ambitions. Throughout 2019, our experts supported the formulation of the Commission’s Just Transition Mechanism, which will facilitate the move to cleaner energy in regions and industries based on fossil fuels. Our unique position at the nexus of EU institutions, national governments and Europe’s cities and regions makes this a key mission for the EIB in the coming years.
In the same way, our development work has a focus on climate resilience and adaptation, because these save or safeguard lives – and because they build economic prosperity. Climate change is global, so we must step up our investments globally. Here we have the tools, too. Our experts marry experience in recognising true innovation with ground-level development work – we have 50 offices around the world and active operations in 43 fragile states. Over the last 10 years, those countries – the world’s least developed – have received over €5.5 billion from more than 100 EIB operations.
Commitment and accomplishment
With our new climate commitment and energy lending policy, it might be easy to focus only on the future and to forget what we have accomplished. Before climate became our central focus and before the COVID-19 emergency, the European Investment Bank was given the mammoth task of supporting the investment of half a trillion euros into the EU economy over five years, as part of the Juncker Plan. In 2020, we are comfortably on course to hit that €500 billion headline target. Most importantly, we already know that this great programme has had a structural impact on the European economy, boosting jobs and growth for decades to come.
It is our job to support the European project and sustainably invest in Europe’s future. This is what we did in 2019 and this is what we shall continue to deliver.
Werner Hoyer
2019 HIGHLIGHTS
European Investment Bank
EIB Group impact
Figures are expected outcomes of new financed operations signed in 2019 for the first time. All figures are unaudited and provisional.
European Investment Fund
The European Investment Fund (EIF), part of the EIB Group, specialises in risk finance to support micro, small and medium-sized enterprises and stimulates growth and innovation across Europe. It provides financing and expertise for sound, sustainable investment and guarantee operations. EIF shareholders include the EIB, the European Commission, public and private banks and financial institutions.
THE EIB GROUP IN YOUR COUNTRY
MEDITERRANEAN €2.45 billion
ENLARGEMENT AND EFTA €1.4 billion
ACP, OCT AND SOUTH AFRICA €1.4 billion
ASIA, CENTRAL ASIA AND LATIN AMERICA €2.2 billion
EASTERN NEIGHBOURS €1.35 billion
EFTA: European Free Trade Association
ACP: Africa, Caribbean and Pacific
OCT: Overseas Countries and Territories
Darker colours signify higher investment as a percentage of GDP
TOTAL EFSI APPROVALS
TO 31 DECEMBER 2019
