European Investment Bank to become 'climate bank'
The European Investment Bank (EIB) will spend €1trn on green projects during the next decade as it aims to become the EU’s ‘climate bank’ and align all its work with the Paris Agreement.
In a new ‘Climate Bank Roadmap’, the EIB also revealed that, by 2025, at least 50% of its budget will be for financing climate action and environmental sustainability – up from around 30% today. Moreover, it will build on its commitment to stop supporting fossil fuel energy projects, maintain leadership in capital markets, and increase finance for climate change adaptation across the world.
The roadmap also includes a social element, promising more resources for a ‘just transition’ through training, jobs and advisory services for people whose livelihoods are threatened by the transition to low-carbon economies. This comes after the European Commission last year unveiled plans for a ‘green deal’ that will see Europe become the world’s first carbon-neutral continent by 2050.
“We’re transforming the way we do business,” said Stephen O’Driscoll, head of the environment, climate and social office at the EIB. “It’s a DNA change at the bank, where we accelerate the transition through green finance and pull out all the stops to make the European Green Deal a success.”