The European Investment Bank announced this week that it has signed an agreement to provide a €300 million framework loan in partnership with The Export-Import Bank of China, also known as Eximbank, which the Europeans hope will spur other financiers in providing up to €1 billion in financing to help the country reduce carbon emissions and improve environmental protection.
On Monday, the European Investment Bank (EIB) announced the first climate finance-focused partnership between it and Eximbank, which were formed in 1958 and 1994 respectively. EIB will provide Eximbank with technical best practice advice as well as €300 million to support new energy, water, transport, and industry schemes designed to significantly reduce greenhouse gas emissions and improve China’s resilience to climate change and extreme weather events.
“Tackling climate change and reducing pollution is a global challenge and the European Investment Bank, as the EU Bank, is committed to supporting the Paris Climate Agreement,” said Jonathan Taylor, EIB Vice President responsible for East Asia. “This new cooperation with Eximbank aims to unlock a total of EUR 1 billion of new climate-related investment in China and reflects the shared commitment of China and Europe to reduce energy use, cut emissions and protect the environment. Unlocking climate investment will both create highly skilled jobs and reduce pollution.”
Representatives from Eximbank welcomed the opportunity to work with EIB and praised its global experience and technical expertise in the climate field.
The EIB bills itself as the “largest multilateral provider of climate finance worldwide” and has committed 25% of its investments to climate change mitigation and adaptation. Matching words to actions, in 2017 the European Investment Bank provided €19.4 billion in financing to climate change mitigation and adaptation, accounting for 28% of the Bank’s financing in the year.
So far this year, the EIB has already made numerous commitments to financing climate and development around the world, including $25 million to strengthen African off-grid solar access and €50 million in loans to build 9 wind power projects across the Aragón region of Spain. In addition, earlier this year the European Investment Bank teamed with global financial behemoth ING in committing €300 million to support green investments in the European shipping sector.
To top it all off, the EIB announced in March that it provided €1.05 billion worth of new financing for solar energy around the world in 2017, the largest ever annual support for the solar sector by the Bank.
“The European Union and India are committed to implementing the Paris Climate agreement and working together to achieve Sustainable Development Goals, including ensuring access to affordable, reliable, sustainable and modern energy for all,” said H.E. Mr. Tomasz Kozlowski, Ambassador of the European Union, in March. “As the European Union’s bank, the EIB has a strong track record of supporting transformational investment in India and working with Indian partners to enhance solar investment across this country to benefit millions of Indian households.”