EU Investment Bank to increase climate action investment across Africa

European Investment Bank (EIB), world’s largest global lender for climate related investment, weekend announced its commitment to support climate action and climate related investments in Africa.

In the last five years, the EIB has provided more than €90 billion for climate related investment around the world. In 2015, EIB climate finance reached a record high of €20.7 billion, representing a 27 percent of overall financing.

Jonathan Taylor, vice president, EIB, said during an interview with journalists in Marrakech, Morocco, that the bank was looking at increasing its investment on climate change action to about €30 billion in the next few years.

He said the bank was looking at impact investment across Africa including Nigeria and Liberia, where its banking partners were already making and negotiating new investments.

“The EIB welcomes the ratification of the UNFCCC Paris Agreement less than a year after COP 21, a key step to ensuring that the first-ever legally binding global agreement on climate can enter into force,” Taylor said, recognising the importance of long-term finance to tackle a changing climate and the increasing role of climate finance to drive economic growth.

The Paris Agreement has strengthened efforts to unlock more sustainable finance and catalyse greater investment where market innovation, national leadership and international finance all play a crucial role.

“This includes backing for long-term investment in new sustainable transport, renewable energy and energy efficiency schemes, as well as supporting investment to adapt crucial infrastructure to a changing climate both across Europe and around the world, in Africa, Asia, Latin America and in Europe’s eastern neighbours,” he said.

Climate action is a key priority for the European Union’s long-term lending institution, the EIB said.

“Transformational projects such as the Noor solar power plant at Ouarzazate and Lake Turkana wind farm in northern Kenya demonstrate how private investment across Africa can be unlocked to strengthen sustainable energy generation.

“Enabling future climate related investment of this scale and increasing the climate impact of all projects is crucial for successful implementation of the Paris agreement,” Taylor said further.

Climate related investment approved by the EIB since the Paris meeting ranges from zero-energy buildings in Finland, a billion euro for sustainable transport in Paris, construction of mobile breakwaters to protect islands in the Venice lagoon, and one of the world’s largest offshore wind farms, the 84 turbine Beatrice project that will provide sustainable power to an estimated 450,000 homes.