European bank to double loans to renewable energy projects

LUXEMBOURG, Luxembourg, 2004-06-16 Refocus Weekly The European Investment Bank will increase its loans for renewable energy projects to Euro 700 million per year by 2010.

During the latest five year period, EIB loaned Euro 1,600 million to projects in the sector.

EIB will increase its lending for renewables by up to 50% of its financing for electricity generation in the EU by 2010, in order to promote the EU´s target of 22% from green power, says a six-point renewable energies action plan outlined at the recent renewables conference in Bonn. It will also enhance support for investments in renewables in developing countries and emerging markets in support of the EU’s energy initiative and EU’s proposed ‘Patient Capital Initiative’ that will be a public-private fund to increase access to risk capital to renewables projects.

The EIB is the EU’s long-term lending institution that supports capital investment to promote EU policies. Its task is to contribute to the balanced development and economic cohesion of member countries.

EIB will set targets and timetables to increase its support for investment in renewables, says vice president Peter Sedgwick, and will promote the EU ‘Environmental Technologies Action Plan’ which also covers renewable energy technologies. Other parts of the plan include the allocation of Euro 500 million between 2004 and 2007 to finance CO2 reduction projects and to provide Euro 10 million to fund carbon trading transaction costs.

The action plan for renewable energies reinforces EIB’s support for the EU climate change policies, and updated its Environmental Statement to expands the commitment to support EU environmental and social policies, focusing on its mission to support investment contributing to improving the environment, including RE projects, and to ensure that any adverse effects on the environment in other projects it finances are mitigated.


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