The European Investment Bank (EIB) is an integral part of the European Green Deal, with the role of funding agency and advisor, with programs structured around the key area of focus of the European Green Deal and with a Climate Action Plan implying the EIB will be making 50% of their lending to climate change-related activities by 2025.
"The EIB Group needs not only to do better, but also - above all - need to do more financing, given the scale of the investment required to achieve the ambitious targets required for achieving the Green Deal, and specifically for the recently adopted target of reduction of at least 55% of GHG emissions by 2030!"
In this policy study, Stephany Griffith-Jones examines the context of the major green transformation that needs to take place and the challenge of implementation that this entails. The central idea is that instruments must be deployed in ways that maximize their development impact. Thus, the EIB, like all public development banks has a double mandate. Its main aim should be to maximize sustainable and inclusive development impacts (including economic, environmental and social impacts) while maintaining some financial profits or avoiding financial losses .
It firstly considers the context in which the EIB needs to operate, including what needs to take place in the framework of the European Green Deal and aligning to the Paris target with reference also to the major additional challenges posed by the COVID-19 crisis and the financing of companies. It also outlines the new roles and resources, which the EIB has been given to meet these challenges, and the central role the bank should play in the green transition.