THE MEDITERRANEAN. The European Investment Bank (EIB) is committed to a strategy of funding urgent action as part of Europe’s battle against climate change. The Luxembourg bank is involved in this field to assist, not only Member States, but also those outside European borders, with a total of €8.3 billion committed over the period 2007/2013.
On 14th January 2013, the EIB published its climate change roadmap for countries outside its mandate. The bank has already contributed funding to seventeen countries in 2012. It is to redouble its efforts.
The strategy rests on six pillars: a more proactive approach to support innovative projects that are likely to reduce global warming; improve climate resilience in the most vulnerable countries; continued collaboration with the European Union and Member States; collaboration with bilateral European and international finance institutions, monitoring and data reporting on the impact these projects have on the climate and monitoring financial flows for climate actions.
50% of the funding from the EIB in 2013 involves the environment
Applied to the southern Mediterranean, this strategy, supported by FEMIP (Facility for Euro-Mediterranean Investment and Partnership), is rooted in supporting inclusive, sustainable development projects. These include transport (sea, road, rail) and environmental infrastructure (water supply, waste management and cleaning up the Mediterranean Sea.
This funding is also offered to pre-accession countries. Over the last three years, 20% of the funds allocated to these countries enabled projects on climate change to be funded. These were mainly renewable energy, which received €1.3 billion and the rail sector (€650 million). In this last area, Turkey received €300 million to help build the Bosphorus Tunnel in Istanbul. This engineering project will create a rail link crossing the famous strait, which will connect to the Istanbul metro.
This country is one of the most vulnerable to erosion due to its topography, climate, the nature of its soil and overgrazing, and is undertaking a large-scale reforestation programme with Europe’s help.
The volume of loans granted for climate projects since 2010 has continued to grow by an average of 30% per year. This is set to continue in 2013. By late September 2012, the bank had already approved the release of €600 million for the Cairo metro.
Half of the EIB’s potential investments in 2013 involve climate projects (urban transport, ports, renewable energy, including the Mediterranean Solar Plan and the development of natural gas) compared to 10% ten years ago.