Author(s): Werner Hoyer
Date published: Dec 2019
SUERF Policy Note, Issue No 120
by Werner Hoyer, European Investment Bank
JEL-codes: F64, H54, H81, O38.
Keywords: Competitiveness, climate change, social inclusion, public investment policy, international financial institutions.
Structural challenges facing the European economy call for an accelerated European response. While maintaining competitiveness requires action on innovation, digitalisation and business dynamism, climate change demands both massive investments and an urgent shift to avoid lock-in to high carbon technological pathway. These transformations, moreover, must be socially inclusive if they are to be effective. Called by its shareholders to become the EU’s Climate Bank, the EIB’s new Climate Strategy and Energy Lending Policy foresee climate action increasing to 50% of lending by 2025, thereby supporting some EUR 1 trillion of investments by 2030. Meanwhile, the EIB will align all financing activities with the Paris agreement by the end of 2020 and the Bank will propose a dedicated Energy Transition Package to support a fair transition across Europe.
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