EIB | Climate Bank Roadmap Phase 2

Tackling climate change remains one of the defining challenges of our times, here in Europe, as well as all around the world. Substantial investment is needed for the European Union to lead the ongoing technological transition towards a more efficient and competitive economy, to reduce dependency on fossil fuels and ensure security and strategic autonomy, and to adapt to the increasingly costly impact of rising temperatures and extreme weather events.

Green investment is the smartest decision we can make for our future. The next five years are key for Europe’s climate and energy ambition and leadership in this global transition. As others step back, there is an energy revolution in full swing in Europe, which is on track to decarbonise its key industries, to deploy innovative systems and products, to boost industrial competitiveness, to develop new green activities and nature-based solutions creating jobs and inclusive prosperity, to increase efficiency, to reinforce critical infrastructure and to become more resilient to climate change in a changing geopolitical context.

The scale of the needs calls for the mobilisation of public and private resources and the activation of smart financial instruments to leverage Europe’s capital and attract international investments, both in Europe and globally. As the financial arm of the European Union, the European Investment Bank (EIB) Group has an important role to play in financing large, strategic infrastructure contributing to more integrated energy systems and more efficient and resilient systems in the areas of water, minerals and other critical raw materials. Also, in supporting higher risk R&D, cleantech and disruptive innovation, as well as the development and deployment of new net-zero technologies. To finance private projects for the decarbonisation of energy-intensive sectors and to provide funding for the increased efficiency of small and medium-sized enterprises (SMEs), transport and buildings. Finally, the EIB Group is also a key player in supporting the adaptation and resilience of economic activities at the forefront of climate change, from agriculture to water, and, including through the European Investment Fund, in mobilising private capital and green finance.

Building on the successful implementation of the first phase of the Climate Bank Roadmap and Climate Strategy, the EIB Group presents this second phase to steer its strategic priorities to 2030. Since the launch of the Climate Bank Roadmap in 2020, the EIB Group has significantly increased the share of Group Green Finance¹ from under 40% in 2020 to nearly 60% of total financing in 2024 – significantly outperforming the >50% by 2025 target. It has reached a record level of €31 billion financing for energy efficiency, electricity grids, storage and deployment of renewables. It has financed flagship innovative projects in the European Union to develop green hydrogen and new e-fuels, to deploy renewables, to develop Europe’s cleantech capacity, to transform the car- manufacturing sector, to decarbonise heavy industry, and foster green investments by SMEs through the banking sector.

In addition to supporting emissions reduction, the Group has also significantly increased its support to other sustainable finance objectives, including climate adaptation, for which it has tripled its annual financing since 2021 to reach €4.5 billion in 2024.

At the global level, The EIB is also a key player in the areas of green finance, and one of the first multilateral development banks to implement the joint Paris Alignment frameworks launched at COP24. It is one of the largest multilateral investors in the water sector, with flagship projects to reinforce energy interconnectors, deploy renewables, support low-carbon transport systems, protect and increase the resilience of natural ecosystems and their services and foster sustainable agriculture in Africa, Latin America and Central Asia.

During this period, the EIB Group has consolidated its status as the climate bank, with a leading role in the area of green bonds. With more than €100 billion issued in green and sustainable bonds, and a growing activity in the acquisition of green bonds issued by private players, as well as a contribution to the global green bond initiative, the EIB is mobilising public and private finance for mitigation and adaptation to climate change, and wider environmental objectives, in Europe and beyond.

On the basis of the strong current activity, the present document outlines the second phase of the Climate Bank Roadmap, setting out the Group’s priorities and objectives for the next five years in support of EU climate policy including internationally. Whereas the initial phase of the green transition has been driven by the regulatory framework adopted to implement the Paris Agreement, public economic support in the form of subsidies and tax benefits, as well as the integration of climate risks in the balance-sheets of companies and financial institutions, the second phase of the green transition is increasingly driven by considerations of competitiveness and security. Through lower energy prices, more efficient productive systems, innovative products and services and more resilient infrastructure, agriculture and ecosystem services, the European economy can successfully lead the green transition and contribute to a more sustainable future for all.

The Climate Bank Roadmap for the 2026-2030 period is complemented by the Energy Sector Orientation. Both documents are driven by three main objectives:

1. To stay the course and adapt to the new needs and circumstances as the climate bank: The case for Europe to invest in modern, efficient, clean solutions and technologies has never been clearer. To tackle climate change, there is an urgent need to reduce global emissions to meet the goals of the Paris Agreement. To foster industrial competitiveness globally, driving long-term economic growth, job creation, health and prosperity. To become more autonomous as a continent and to support Europe and developing countries to become more resilient to external shocks including from geopolitical developments and more extreme weather

The next five years will define Europe’s global technological and political leadership. The EIB Group, therefore, will maintain its original roadmap ambition and objectives and extend them all to the Group level

– that is, to align financing activities with the goals and principles of the Paris Agreement and ensure a share of more than 50% of signatures each year for green investment, in turn supporting overall green investment of €1 trillion by 2030.

2. To focus on investment for impact: Under current operational plans, a 50% share translates into approximately €50 billion of Group Green Finance each year. This volume is significant at European scale – and globally, as part of the wider European response. For this second phase, however, the focus will be on green projects and programmes where one euro of Group investment offers multiple benefits – leveraging investment to boost competitiveness, increase prosperity and inclusion and reinforce European security and resilience. Making Climate, Competitiveness, Prosperity and Security a winning proposition for Europe and the

In line with the Clean Industrial Deal, the EIB will focus on lowering EU energy costs – as further elaborated in the Energy Sector Orientation – as well as boosting industrial efficiency, including through an SME energy efficiency programme. European industry needs to decarbonise and innovate to increase its competitiveness. The EIB will focus on support for innovation to decarbonise European energy-intensive industries, including hard-to-abate sectors such as aviation and shipping, and as part of wider EU initiatives such as the industrial decarbonisation bank. Through the TechEU initiative, the EIB Group also supports the scaling up of the European cleantech sector, including to supply global markets. Unlocking the next wave of innovation requires bridging the gap from lab to large-scale deployment, building resilient supply chains and accepting the inherent risks of failure. Finally, there will be a reinforced focus on more efficient, cleaner and resilient industrial supply chains, through financing for the circular economy and the provision of critical raw materials.

People need to be able to enjoy the benefits of a clean transition. The EIB Group will support a just transition by focusing support on growth in EU regions in which the local economy and jobs today depend on fossil fuels. Priority will be given to boosting access for lower-income groups to clean and resilient transport and housing solutions that deliver the direct benefits of the clean transition, including through the EIB Affordable and Sustainable Housing Plan. Beyond the European Union, financing will support clean development in line with European commitments stemming from the Paris Agreement, including working as part of the Multilateral Development Bank community to support developing countries by contributing to the investments needed to build clean energy and transport systems and reduce vulnerability to rising temperatures, changing weather and loss of ecosystem services. More broadly, the EIB Group will continue to leverage talent among women, young people and diverse groups to accelerate the transition, by supporting access to clean solutions, inclusive prosperity and the broader well-being of people.

We need to ensure our critical infrastructure is resilient to climate change. Cities and regions need to invest more to protect communities; companies need to invest to preserve future revenues streams and protect the ecosystem services upon which they depend. The EIB Group will therefore focus on working with its clients to ensure that projects take climate change impacts adequately into account through “resilience by design.” Moreover, investment and integrated planning are required to restore and maintain natural infrastructure and ecosystems to reduce droughts, natural disasters and the impacts of extreme heat.

In view of the accelerated effects and increasing costs of climate change, and the economic and financial risks that degradation of ecosystem services poses across regions and industries, there needs to be a reinforced emphasis on adaptation and resilience. With an aggregate of €30 billion of finance for climate adaptation over the 2026-2030 period, this second phase of the Climate Bank Roadmap will make a difference in supporting sectors and regions in the forefront of climate change, with a special attention to agriculture, land use and oceans, as well as integrated water management. Through banking partners, the Group will also focus support for SMEs. Finally, support for climate-vulnerable cities and regions will be prioritised, in particular through partnering with national promotional banks and other multilateral development banks.

3. Simplification and regulatory alignment: The European landscape on sustainable finance has evolved significantly over the last years and the regulatory framework has been developed to provide for standards, common definitions and clear criteria. In moving to this second phase, the EIB Group can therefore update and revise its own implementing frameworks to reduce red tape for clients, simplify the rules and ensure coherence with European legislation and harmonised international approaches, for instance with regards to which activities, projects, products or counterparties are defined as supporting green investment, or in considering alignment to the Paris Agreement. Where possible, specific questionnaires will be replaced by existing corporate sustainability reporting

The EIB Group frameworks will generally rely on market-recognised EU benchmarks and regulatory standards and international standards. There will be no gold-plating, and specific requirements will be kept to the minimum to avoid duplications and reduce the compliance burden for clients and partners.

While ensuring robust frameworks, all processes will be based on the principle of proportionality, notably to reduce reporting and administrative burden for smaller companies and counterparties that finance them. In practice, this implies minimum information requirements in order to track the 50% Group Green Finance target. In terms of Paris Alignment of SME finance, a new approach will be introduced, increasingly based on activity-level exclusions. This represents a significant reduction in administrative burden for partner financial intermediaries and their SME clients that will be enhanced by the extensive use of efficient self- assessment tools like the online Group Green Checker.

The EIB Group will continue to monitor closely, and contribute to, any development or revision of the EU taxonomy technical screening criteria, as well as EU sustainable finance regulations more generally. This is supplemented by international harmonisation efforts through the Multilateral Development Bank (MDB) Group and the International Platform on Sustainable Finance. The annual sustainability reporting and Climate Bank Roadmap results framework will be upgraded to accompany this phase of the roadmap.

To conclude, by mobilising large-scale investment, the EIB Group is determined to play an important role in ensuring that Europe fulfils its climate and environment ambition, while demonstrating its technological and political leadership. It is not only a matter of ensuring a healthier, more sustainable future for younger generations, it is also a matter of today’s economic competitiveness, strategic autonomy, geopolitical relevance and security. We have the tools and financial capacity to make the green and just transition a European success. And the EIB Group is determined to make a significant contribution to this process.

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1 During Phase 2 of the Climate Bank Roadmap, the term ‘Group Green Finance’ is used to replace the term ‘Climate Action and Environmental Sustainability Finance’ used during Phase 1. Group Green Finance is tracked according to Group definitions as outlined out in Chapter 3, below.

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