The EIF designs and deploys financial instruments which channel public resources to small businesses and infrastructure projects. To improve the access to finance for green small businesses and innovative start-ups we partner with banks, credit institutions, microfinance partners and private equity and venture capital funds. Our solutions absorb a portion of their risk and, in the case of funds, our commitment and green due diligence process help to crowd in other investors. By encouraging banks to lend and helping funds attract private investment, we help make more finance available for Europe’s small businesses. Overall, every €1 channeled via the EIF results in more than €5 for small businesses. In order to improve the financing ecosystem for infrastructure projects, we provide commitments to climate and infrastructure funds. We only invest in sustainable funds that follow the EU Taxonomy, a best-in-class ESG approach and that exclusively invest in fully Paris-aligned assets. With this, our investment provides an important signaling effect to investors seeking to identify green/climate investments. In fact, this crowding in typically results in every €1 channeled via the EIF attracting €14 from other investors, meaning €15 reach the infrastructure projects.
Achieving climate neutrality is the biggest challenge of our times. No government, European institution, NGO or private enterprise holds the key and there is no magic wand. It’s something we all need to work towards. Together. The entire economy needs to shift towards a more sustainable operational existence. At the EIF, our role is to make sure that the main drivers of the European economy – the millions of small and medium-sized businesses - find the support they need in the transition to a more sustainable future, generating innovative solutions to climatic and environmental challenges. In parallel, we are directing investments to infrastructure funds with a strong climate focus to support green infrastructure projects that can also help in the transition to a more sustainable economy. Alongside our partners, this is something we will be focussing on more and more in the coming years. Starting yesterday.
ROGER HAVENITH, Deputy Chief Executive
The EIF abides by and follows a number of international and European regulatory frameworks, initiatives, principles and pledges as follows:
- EIB Group Climate Bank Roadmap
- EU Green deal, EU Climate Law, Fit for 55