The European Investment Bank (EIB) pledged to expand its range of financing tools for projects aimed at supporting a just transition to a climate-neutral economy across the world. EIB Global, the EU lender’s dedicated arm for outside the EU, will adopt its comprehensive strategy in early 2023, unveiling new instruments, which will back an equitable decarbonization that leaves no one behind.
In a statement released during the COP27 United Nations climate conference in Sharm el-Sheikh, Egypt, the EIB vowed to offer financing and advisory services in regions that combine carbon-intensive production with socio-economic fragility. Moreover, in the context of a Just Resilience strategy, the EIB will seek to support adaptation actions explicitly addressing the needs of population groups most vulnerable to the impacts of climate change.
The transition to a carbon neutral economy will be accompanied by socioeconomic impacts for the global workforce
EIB Vice-President Ambroise Fayolle commented: “The transition to a carbon neutral economy will be accompanied by socioeconomic impacts for the global workforce. The EIB aims to support countries whose economies are heavily dependent on fossil fuels, through the decarbonization of industries and creation of new economic opportunities for all. In addition, we aim to increase our financing for projects that enhance the resilience of people and areas most vulnerable to the impacts of climate change already happening today. We are committed to working with the European Commission, governments, business, philanthropy and the financial sector to support a green transition that leaves no one behind.”
Examples highlighting EIB’s commitment to step up support for those most affected by the low-carbon transition include “Just Energy Transition Partnership” initiatives. Moreover, in the context of a project to implement climate-resilient water supply systems in a small island development state, EIB Global is looking to provide technical support for developing a connection strategy and subsidy mechanism to ensure access to drinking water for vulnerable households and women, thus affirming a Just Resilience approach.
Today’s statement outlines how the EIB aims to better assist partner countries, clients and organizations across the world in their pursuit of a just transition alongside broader support for climate action and environmental sustainability. This is in full alignment with the provisions and spirit of the Paris Agreement which acknowledges “the imperatives of a just transition of the workforce and the creation of decent work and quality jobs in accordance with nationally defined priorities.”
The EIB’s support is in line with the joint statement by multilateral development banks outlining their commitment to five high-level principles for a just transition. In addition, the EIB is working closely with the European Commission on supporting a just transition inside the European Union. The EIB will use this unique knowledge and experience to operationalize its support for a just transition across the world.