EIB okays EUR 2bn for renewables as EU formalises climate pledge

The European Investment Bank (EIB) on Thursday approved EUR 3.4 billion (USD 4.08bn) in new financing for climate action, including EUR 2 billion to scale up the use of renewable energy, just as the EU agreed on its 2050 climate-neutrality target.

EIB has allocated EUR 2 billion to support the development of renewable energy projects in France and Germany, the increase in solar power consumption by homeowners across Spain, and wind projects in Ireland. Also, the financing will help improve energy distribution in Italy and covers a solar-plus-storage project that relies on both batteries and hydrogen.

The larger financing package also includes EUR 700 million for sustainable transport, EUR 720 million for corporate research, innovation and business investment, and EUR 837 million for urban investment, housing, education and communications.

All of these funds were approved a couple of days after the EU made legally-binding its commitment to become the first climate neutral continent by 2050. On Wednesday, co-legislators reached a provisional agreement on the European Climate Law, which outlines the 27-nation bloc’s pledge to pursue climate neutrality 2050. This includes an intermediate target of cutting net greenhouse gas emissions by at least 55% by 2030 from 1990 levels, and introduces a process for establishing a 2040 climate target.

(EUR 1.0 = USD 1.203)

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