European Investment Bank

European Investment Bank
Founded1958 (1958)
TypeInternational financial institution
Location
OwnerEU member states
President
Nadia Calviño
Vice President
Ambroise Fayolle
Employees4,273 (2023)[1]
Websiteeib.org

The European Investment Bank (EIB) is the European Union's investment bank and is owned by the 27 member states. It is the largest multilateral financial institution in the world. The EIB finances and invests both through equity and debt solutions companies and projects that achieve the policy aims of the European Union through loans, equity and guarantees.

The EIB focuses on the areas of climate, environment, small and medium-sized enterprises (SMEs), development, cohesion and infrastructure. It has played a large role in providing finance during crises including the 2008 financial crash and the COVID-19 pandemic.[2][3] Over 60 years since its inception in 1958 to 2018 the EIB has invested over 1.1 trillion euros.[4] It primarily funds projects that "cannot be entirely financed by the various means available in the individual Member States".

The EIB is one of the biggest financiers of green finance in the world.[5][6][7][8] In 2007, the EIB became the first institution in the world to issue green bonds. In 2019 it committed to stop funding fossil fuel projects by the end of 2021. The EIB plans to invest 1 trillion euros in climate-related projects by 2030 including a just transition.[9][10] The EIB is not funded through the budget of the EU. Instead, it raises money through the international capital markets by issuing bonds.[11] The EIB is rated triple-A, the most credit-worthy rating on the bond market, by "the Big Three" credit rating agencies: Moody's, Standard and Poor's, and Fitch.[12][13][14] Each member state pays capital into the EIB's reserves which is broadly in line with their share of EU gross domestic product.[15][16][17]

The EIB was founded by the Treaty of Rome, which came into force on 1 January 1958. It was the first of the world's regional development banks and is sometimes referred to as the largest multilateral development bank (MDB). The EIB was established to facilitate equitable development in the EU through lending to regions that are less developed and to support the EU's internal market. The EIB is active in 140 countries throughout the world. It makes around 10% of its investments outside the EU to support the European Union's development aid and cooperation policies.[17]

The EIB has been criticised and caused controversy for various actions and inactions of its own (or projects it funded), including: insufficient stakeholder consultation, lack of organisational transparency, climate change response, defense and promotion of vegetarian and vegan values, tax avoidance, and staff harassment.

  1. ^ European Investment Bank. (8 May 2024). EIB Financial Report 2023 (PDF). European Investment Bank. p. 70. doi:10.2867/972625. ISBN 978-92-861-5744-8. Retrieved 11 June 2024.
  2. ^ "Our priorities". EIB.org. Retrieved 21 April 2021.
  3. ^ "The European Investment Bank | Fact Sheets on the European Union | European Parliament". www.europarl.europa.eu. Retrieved 21 April 2021.
  4. ^ "The European Investment Bank at a glance | 60 Years in numbers" (PDF). www.eib.org. Archived (PDF) from the original on 29 July 2023. Retrieved 29 July 2023.
  5. ^ "Climate change: The EIB finances one of the largest solar plants in Spain". Solarcentury. 11 December 2019. Retrieved 22 April 2021.
  6. ^ "EU Bank launches ambitious new climate strategy and Energy Lending Policy". EEAS – European External Action Service – European Commission. Retrieved 22 April 2021.
  7. ^ "3. Green finance in the Mediterranean — IEMed". www.iemed.org. Archived from the original on 22 April 2021. Retrieved 22 April 2021.
  8. ^ "Martin Berg on sustainable finance: Where does it stand? -". Landscape News. 24 November 2019. Retrieved 22 April 2021.
  9. ^ Bank, European Investment (29 January 2020). ">€1 TRILLION FOR". European Investment Bank. Retrieved 22 April 2021.
  10. ^ "The Just Transition Mechanism: making sure no one is left behind". European Commission – European Commission. Retrieved 22 April 2021.
  11. ^ "Official Journal C 202/2016". eur-lex.europa.eu. Retrieved 22 April 2021.
  12. ^ European Investment Bank (2020). EIB Activity Report 2019. Publications Office. doi:10.2867/4882. ISBN 978-92-861-4606-0. Retrieved 22 April 2021. {{cite book}}: |website= ignored (help)
  13. ^ "European Investment Bank - Aaa stable, Annual credit analysis" (PDF). Moody's.
  14. ^ "European Investment Bank" (PDF). Fitch Ratings.
  15. ^ "European Investment Bank, Ratings Direct" (PDF). S&P Global Ratings.
  16. ^ "Shareholders". EIB.org. Retrieved 22 April 2021.
  17. ^ a b "European Investment Bank (EIB)". European Union. 16 June 2016. Retrieved 22 April 2021.

European Investment Bank

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