European Investment Bank Joins Forces with Rabobank for €1 Billion Small and Medium-Sized Enterprise Financing Agreement
European Investment Bank Boosts Green Financing for SMEs Across Europe
The European Investment Bank (EIB) has announced a significant commitment to supporting small and medium-sized enterprises (SMEs) in their transition towards sustainability and climate-relevant projects. The bank's €1 trillion green investment plan, spanning the decade to 2030, aims to mobilize green finance through loans, guarantees, equity, and advisory services.
This ambitious plan is part of the EIB’s broader Climate Bank Roadmap to 2030, which focuses on both climate change mitigation and adaptation, supporting the transition to sustainability and resilience.
One of the key ways the plan supports SMEs is by providing loans and guarantees. The EIB and its subsidiary, the European Investment Fund (EIF), channel financing via these financial instruments to facilitate access to capital for SMEs engaged in climate and agricultural projects. These financial instruments help reduce investment risks and crowd in private sector funding to scale sustainable projects.
The €1 trillion commitment integrates with EU programmes like InvestEU, which simplifies and increases funding availability for priority projects, including those in agriculture and climate sectors where SMBs often operate. Around half of EIB financing within the EU is directed toward cohesion regions (lower-income areas), benefiting SMEs in these regions by providing tailored green financing aligned with the Paris Agreement.
The EIB also forms partnerships with local banks and entities, such as the recent €200 million financing with Banca Ifis aimed at supporting small businesses including female entrepreneurs, reflecting a commitment to inclusivity and broad economic impact. Projects financed align with EU taxonomy and initiatives like the European Green Deal and the REPowerEU Plan, supporting sustainable agriculture, energy efficiency, and renewable energy infrastructure, thereby helping SMEs transition to low-carbon operations.
At least 15% of EIB climate finance is dedicated to adaptation projects, helping agricultural businesses and SMEs build resilience against climate impacts, crucial for long-term sustainability. The EIB's funding has been instrumental in various sectors across the Netherlands over the past ten years, providing more than €27 billion, including financing for SMEs.
Recently, the EIB has provided Rabobank and its subsidiary DLL with a combined €500 million loan. Rabobank plans to use the money to support small-scale sustainability and agriculture projects undertaken by Dutch businesses, while DLL intends to boost access to funding for local sustainability investments from SMEs and mid-caps in multiple European countries.
The collaboration falls under the categories of Financial inclusion, Pension funds, and Social impact. Lara Yocarini, a member of the managing board at Rabobank and CEO and chair of the executive board of DLL, stated that the funding from the EIB will enhance their ability to provide more accessible, affordable, and tailored leasing solutions.
Meanwhile, the People's Partnership and Good Things Foundation are collaborating to address digital and financial exclusion in the UK, with the funding categorized under Development finance, Housing, Infrastructure, and Social impact.
Elsewhere, the Spanish Regional Resilience Fund is backing urban development and sustainable tourism, further demonstrating the EIB's commitment to supporting green initiatives across Europe. The OECD concluded in a 2021 report that SMEs should play a key role in the journey to net zero due to their significant contribution to energy use, emissions, and pollution.
Jean-Christophe Laloux, EIB director general, stated that climate financing is a key driver of economic growth and that the facility can convince other financiers to make available more support for entrepreneurs developing more sustainable projects. The EIB's green investment plan is a significant step towards a just and inclusive green transition across Europe.
[1] European Investment Bank. (2021). EIB Group's Climate Bank Roadmap to 2030. Retrieved from https://www.eib.org/en/services/climate-change/eib-group-climate-bank-roadmap-2030 [2] European Commission. (2021). InvestEU Programme. Retrieved from https://ec.europa.eu/info/business-economy-euro/growth-competitiveness-innovation/investment/investeu-programme_en [3] European Commission. (2021). European Green Deal. Retrieved from https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en [4] European Commission. (2021). REPowerEU Plan. Retrieved from https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/repowereu_en [5] European Investment Bank. (2021). Financing SMEs in Cohesion Regions. Retrieved from https://www.eib.org/en/about/annual-reports/2020/publications/financing-smes-in-cohesion-regions.htm
- The European Investment Bank's ambitious €1 trillion green investment plan, aimed at mobilizing green finance, encompasses developing finance for climate and agricultural projects, contributing to financial inclusion.
- The EIB's funding is not only for large-scale businesses, but also for small and medium-sized enterprises (SMEs), as evidenced by the €200 million financing partnered with Banca Ifis to support female entrepreneurs and small businesses.
- Science and environmental-science play a crucial role in the EIB's green investment plan, with financed projects aligning with EU taxonomy, the European Green Deal, and the REPowerEU Plan, promoting sustainable agriculture, energy efficiency, and renewable energy infrastructure.
- The impact of the EIB's green financing extends beyond business and personal finance, reaching sectors like climate change mitigation and adaptation, with at least 15% of EIB climate finance dedicated to adaptation projects aiding agricultural businesses and SMEs in building resilience.
- The EIB's green investment plan aligns with the broader EU initiatives like InvestEU, simplifying and increasing funding for priority projects like agriculture and climate sectors, encouraging the transition of SMEs to sustainability, and supporting a just and inclusive green transition across Europe.
