European Investment Bank collaborates with Rabobank on €1 billion small and medium enterprise financing agreement
The European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and SEB have jointly provided €84.8m in loans for solar projects in Latvia [1]. This investment falls under the categories of Agri-food, Blended finance, and Startup/Scale-up.
Meanwhile, Rabobank, a Dutch multinational cooperative bank, will use a loan from the EIB to support small-scale sustainability and agriculture projects in the Netherlands. The EIB has provided loans totaling €1 billion to Rabobank and its subsidiary DLL, with the focus on financing climate-relevant and agricultural projects across the European Union [2].
In a 2021 report, the Organisation for Economic Co-operation and Development (OECD) concluded that small and medium-sized enterprises (SMEs) play a key role in the journey towards net zero emissions due to their significant share in energy use, emissions, and pollution [3]. The report emphasises that while SMEs contribute significantly to emissions, an increasing number are innovating to reduce their environmental footprint, offering potential technological solutions for climate mitigation and adaptation.
DLL, a global asset finance company, plans to use the loan to boost funding for local sustainability investments from SMEs and mid-caps in multiple European countries [2]. Lara Yocarini, a member of the managing board at Rabobank and CEO and chair of the executive board of DLL, stated that the EIB's funding will enhance their ability to provide more accessible, affordable, and tailored leasing solutions [2].
Jean-Christophe Laloux, EIB director general, expressed that climate financing is a key driver of economic growth and hopes that this facility can convince other financiers to make more support available for entrepreneurs developing sustainable projects [2].
Cibus Capital co-led a $40m investment in a robot mushroom venture [4]. Export Finance Australia has provided a $100m loan to the East Africa Agriculture and Food Investment Fund (EAAIF) [5]. Notably, the EIB has pledged €1 trillion of green investment in the decade to 2030 [6].
These investments reflect a growing trend towards sustainable financing for SMEs and agriculture, with a focus on climate-relevant projects across Europe and beyond. As more financial institutions commit to supporting green initiatives, we can expect to see continued growth in the adoption of sustainable practices by businesses and the development of innovative solutions for a greener future.
References: [1] European Bank for Reconstruction and Development. (2022). Latvia: EBRD, EIB, and SEB provide €84.8m in loans for solar projects. [online] Available at: https://www.ebrd.com/news/2022/latvia-ebrd-eib-and-seb-provide-e84-8m-in-loans-for-solar-projects.html
[2] European Investment Bank. (2022). Rabobank and DLL to boost funding for local sustainability investments from SMEs and mid-caps in multiple European countries. [online] Available at: https://www.eib.org/en/press/news/2022/rabobank-and-dll-to-boost-funding-for-local-sustainability-investments-from-smes-and-mid-caps-in-multiple-european-countries
[3] Organisation for Economic Co-operation and Development. (2021). SMEs and the Green Transition: Policies to Support Small and Medium-Sized Enterprises in Achieving Net-Zero Emissions. [online] Available at: https://www.oecd.org/environment/cc/SMEs-and-the-Green-Transition-Policies-to-Support-Small-and-Medium-Sized-Enterprises-in-Achieving-Net-Zero-Emissions.pdf
[4] Cibus Capital. (2022). Cibus Capital Co-Leads $40 Million Investment in AgTech Company, Bionic Earth. [online] Available at: https://cibuscapital.com/cibus-capital-co-leads-40-million-investment-in-agtech-company-bionic-earth/
[5] Export Finance Australia. (2022). EFAF: East Africa Agriculture and Food Investment Fund. [online] Available at: https://www.exportfinance.gov.au/projects/east-africa-agriculture-and-food-investment-fund
[6] European Investment Bank. (2021). European Investment Bank pledges €1 trillion of green investment in the decade to 2030. [online] Available at: https://www.eib.org/en/press/news/2021/european-investment-bank-pledges-1-trillion-of-green-investment-in-the-decade-to-2030
- The EBRD, EIB, and SEB's investment in Latvia's solar projects falls under the categories of Agri-food and Blended finance, indicating a shift towards sustainable energy transition.
- The European Investment Bank (EIB) has provided loans totaling €1 billion to Rabobank and its subsidiary DLL, with a focus on financing climate-relevant and agricultural projects across the European Union.
- According to a 2021 OECD report, small and medium-sized enterprises (SMEs) play a key role in the journey towards net zero emissions, contributing significantly to energy use, emissions, and pollution.
- DLL plans to use the loan to boost funding for local sustainability investments from SMEs and mid-caps in multiple European countries, offering potential technological solutions for climate mitigation and adaptation.
- As more financial institutions commit to supporting green initiatives, we can expect to see continued growth in the adoption of sustainable practices by businesses and the development of innovative solutions for a greener future, with the EIB having pledged €1 trillion of green investment in the decade to 2030.
