This week the European Investment Bank (EIB)the official lending arm of the European Union (and one of the world’s largest climate finance institutions), announced that the first disbursements from an emergency financial support package approved last week have gone to Ukraine. The bank also announced that it will increase the financing of European innovation in security and defense and approved €543 million (approximately $596 million) in investments in clean energy and business.
“RussiaThe brutal and illegal invasion of Ukraine has driven more than 2 million people from the country and triggered a humanitarian and security emergency unprecedented in Europe in recent generations.
The European Investment Bank is providing rapid financial support to Ukraine to meet its urgent financing needs. In addition, the Board today approved (Ed: Thursday, March 9]new EIB European Strategic Security Initiative continue investing in Europe dual-use technologies and civil security infrastructure. Strengthen energy security and make Europe less dependent on fossil fuelsthe EIB will work closely with the European Commission and EU Member States to accelerate the financing of renewable energies, energetic efficiency and electrical networks. Today we also agreed new high-impact financing to help businesses grow and increase their use of clean energy,” said the EIB President. Werner Hoer said in an official comment.
President Hoyer confirmed that the first two installments, totaling EUR 129 million (approximately $141 million) under an emergency financial assistance package of EUR 668 million (approximately $733 million) in EIB assistance Urgent Ukrainian Solidarity Response have been delivered. Further disbursements are expected in the coming days.
This initial support program will help the Ukrainian authorities meet the most urgent financial needs by accelerating the disbursement of two loans initially granted to support SMEs and the agricultural sector in Ukraine.
The EIB’s rapid support to the war-torn country is backed by the EU’s guarantee under the External loan mandate and complements other initiatives announced by EU institutions.
This week, the EIB’s Board of Directors also approved a new EIB Strategic European Security Initiative (SESI) strengthen European security and defense by mobilizing investments in research, development and innovation (RDI), civil security infrastructureand advanced technology projects.
As part of the European Strategic Security Initiative, the EIB plans to approve EUR 6 billion (approximately $6.6 billion) in new financing for such projects over the next 6 years.
The EIB’s European Strategic Security Initiative reflects the new security challenges facing the European Union with cybersecurity and disruptive emerging technologies such as new space, artificial intelligence or quantum technologies creating new vulnerabilities and threat. It will not change what is eligible for EIB financing or modify the definition of its excluded sectors. The EIB will not invest in armaments and the EIB cannot finance core defense investments.
The EIB also intends to further strengthen institutional cooperation with the European Commission (DG DEFIS), the EU Space Program Agency (EUSPA) and the European Defense Agency.
Finally, the EIB has also accepted new financing of EUR 543 million (approximately US$596 million) to support business financing in Italy, business innovation and the expansion of Barcelona Fair exhibition center, alongside investments in clean energy.
Among these projects is a financing of 53 million euros (approximately $58 million) for a new large-scale solar system. green hydrogen plant in Spain which will provide a clean energy alternative for energy-intensive industrial production.
In 2021, the EIB financed nearly EUR 95 billion (about $104 billion) in projects, most concentrated within the borders of the European Union.