European Investment Bank (EIB) has pledged to expand its range of financing tools for projects aimed at supporting a just transition to a climate-neutral economy across the world. 

EIB Global, the EU lender's dedicated arm for outside the EU, will adopt its comprehensive strategy in early 2023, unveiling new instruments, which will back equitable decarbonisation, the Bank said in a statement. 

Zawya Projects has compiled a list of initiatives and financing deals announced by the lender at COP27 summit in Sharm El-Sheikh.

EIB's board of directors approved €10.9 billion of new financing to accelerate climate action and clean energy, business investment, health and sustainable transport investment across Europe and around the world. “Close cooperation between business, public sector and financial partners globally is crucial to unlock investment that cuts emissions, reduces the impact of global energy shocks and tackles climate change,” said EIB President Werner Hoyer.

EIB signed an agreement with Namibia to provide a potential loan of up to €500 million for renewable hydrogen and renewable energy investments. This loan will accompany a non-reimbursable grant of €5 million from the European Union that EIB Global would mobilise.

-EIB announced it will support investments in energy, transport, water and agriculture adaptation under Egypt’s Nexus on Food, Water and Energy (NWFE) programme. New investments of some €400 million will be dedicated to the water sector to improve access to drinking water, and recycle the wastewater in the framework of the NWFE programme, while also promoting energy efficiency. EIB has already supported  investment with more than €1 billion  in 13 projects in water and wastewater across Egypt.

In transport, EIB is providing funding worth €600 million for Cairo Metro Phase 3. It has also announced €221 million of new financing to support upgrading the 119-km railway between Tanta and Damietta, the country’s second busiest railway, by increasing passenger and freight capacity, improving speed and enhancing safety through installation of new signalling systems.

Additionally, European Investment Fund, part of EIB Group, announced new financing to support €2.5 billion of climate action investment in the country.

-EIB Vice-President Ambroise Fayolle and Development Bank of Southern Africa CEO Patrick Dlamini agreed on EIB financing that will back a new targeted financing programme to unlock €400 million for private sector renewable energy investment across South Africa. The €400 million initiative will be backed by €200 million from the EIB and provide financing for a range of new renewable energy projects across South Africa.

-The Emerging Market Climate Action Fund, jointly launched by EIB and Allianz Global Investors, announced a $25 million investment into Alcazar Energy Partners II, a fund providing early-stage equity financing to develop, construct and operate renewable energy projects in the Middle East, North Africa, Eastern Europe and Central Asia. This commitment is in parallel to EIB Global, which provides $75 million to the fund.

Alcazar Energy Partners II has a target size of $500 million and will invest in onshore wind and solar photovoltaic, with additional potential investments in hydropower, biomass or battery-based electricity storage or other low-carbon technologies.  

(Writing by P Deol; Editing by Anoop Menon)