The European Investment Bank (EIB) plans to dedicate 50 per cent of its financing to climate action and environmental sustainability by 2025, up from 31 per cent in 2019, it said on Thursday.
The European Union’s non-profit lending institution is rebranding itself as the bloc’s climate bank and is taking on a key role in the European Green Deal, a flagship programme developed by the EU executive to adapt the economy to climate challenges.
EIB chief Werner Hoyer said in a statement that as the bank announced its 2019 annual results that they are ramping up their climate action.
READ ALSO:FirstBank Tasks SMEs on Capacity Building
“Efforts to fight climate change are not just a huge challenge but a huge investment opportunity,’’ he added.
By 2030, the bank aims to mobilise 1 trillion Euros (1.1 trillion dollars) in green finance, for example by providing guarantees to attract private investors.
Late 2019, the EIB announced plans to phase out it’s financing for fossil fuel energy projects after 2021.
The bank, owned by the EU member states, has stopped directly supported coal power projects in recent years however keeps making exceptions for gas.
The European Green Deal, developed by European Commission President Ursula von der Leyen, aims to turn the EU into the world’s first net carbon neutral continent by 2050.
The report says this goal entails slashing carbon emissions as well as using carbon capture technologies to soak up the remainder.