EIB Global sets up climate fund with Germany and Luxembourg as pioneer contributors

This article is published in association with European Investment Bank.

• EIB Global creates climate fund to which Germany and Luxembourg contribute total of €32 million as initial donors, with door open to others.
• New fund to finance EIB programme that advises central banks and financial institutions on green investments.
• Parties sign agreement at UN climate conference in Belém, Brazil.

The European Investment Bank Group’s development arm, EIB Global, is teaming up with Germany and Luxembourg to boost green financing worldwide. EIB Global is creating a trust fund for climate action to which Germany and Luxembourg are contributing a total of €32 million as initial donors.

The initiative – called the Greening Financial Systems Fund – will facilitate investments in actions that counter climate change and promote environmental sustainability. Germany is providing €30 million and Luxembourg is offering €2 million, with the door open to other donors.

The three parties signed the agreement today at the 30^th United Nations climate conference in Belém, Brazil, highlighting the European Union’s commitment to global climate action and sustainable development. The new fund will finance the EIB’s Greening Financial Systems Programme, which advises central banks, regulators and financial institutions on curbing climate risks and building resilient financial systems around the world.

“This initiative bolsters the EU’s global green agenda,” said EIB Vice-President Ambroise Fayolle. “Thanks to Germany and Luxembourg, we are helping developing and emerging countries advance green finance and accelerate the shift to a sustainable future.”

“The financial system is pivotal for reaching net-zero economies globally,” said German State Secretary for the Environment, Climate Action, Nature Conservation and Nuclear Safety Jochen Flasbarth. “By aligning financial flows with the goals of the Paris Agreement, we set a stringent and reliable enabling investment environment for climate action. This can unlock unprecedented private capital and opportunities for mitigation, resilience and prosperity. Central banks and financial supervisors play an important role incorporating climate related risks into their monetary and prudential policies as well as leading by example. Commercial banks, in turn, are key actors to channel investments towards the green transition. Through the EIB, Germany – now together with Luxembourg-  is supporting both actors in emerging and developing countries to develop transformative capacities and to introduce policy shifts.”

“Reorienting financial flows is fundamental to implementing and achieving the goals of the 2030 Agenda, the Paris Agreement and the Kunming-Montreal Global Biodiversity Framework. Our future depends on making these investments now, especially during this crucial decade,” said Serge Wilmes, Luxembourg’s Minister for the Environment, Climate and Biodiversity.  “Greening the Financial Systems  is a tailor-made Fund that sets out how the financial sector and governments can work together and ensure a just transition that benefits our societies and economies.”

The accord bolsters the financial foundations of the GFS Programme as it works with authorities and investors to tackle climate threats such as droughts, fires and floods and to use regulatory measures to shift funding towards clean energy.

Initially backed by Germany under its International Climate Initiative, or IKI Fund, the GFS Programme is now underpinned by a multi-donor fund able to pool resources to accelerate the green transition worldwide.   

Demand is growing for the advisory services of the GFS Programme, which currently supports 12 countries in the EU neighborhood – including the western Balkans – and sub-Saharan Africa.  Recent examples include work with banks in Ethiopia, Kenya and North Macedonia. Such efforts also create a pipeline of projects that the EIB can subsequently finance.

In addition to supporting a regulatory shift towards sustainable investments, the GFS Programme helps financial intermediaries enact such measures. This role in turn enables financial intermediaries both to mobilise funding for green projects and to assess, monitor and report on the climate and environmental impact of their activities.

The GFS Programme is fully aligned with the EIB Group Climate Bank Roadmap, the objectives of the Paris Agreement and the NDC Partnership – a global coalition of countries and institutions working to drive transformational climate action through sustainable development.

EIB Global is seeking new donors to the GSF Programme to increase its reach and, to that end, has produced a “replenishment proposal”.

EIB Group at COP30

An overview of EIB Group activities at the UN climate conference, known as COP30, is available on the organisation’s website. The EIB Group shares a pavilion with the group of multilateral development banks. The full agenda is available here.

EIB Group Climate Bank Roadmap Phase Two

The EIB Group is pressing ahead with phase two of its pioneering Climate Bank Roadmap, staying the course as anchor financier of the green industrial revolution, energy security and shared prosperity. Building on the great success of our Climate Bank Roadmap since its launch in 2020, the second phase of the roadmap sets out the EIB Group’s priorities through to the end of this decade, supporting Europe’s competitiveness, security, technological leadership, doubling adaptation finance while simplifying its procedures to accelerate green investment.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. The EIB finances investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, a stronger Europe in a more peaceful and prosperous world and Europe’s capital markets union.   

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.    

Approximately half of the EIB’s financing within the EU targets cohesion regions, where per-capita income is below the EU average, while almost 60% of annual EIB Group investments support climate action and environmental sustainability. 

High-quality, up-to-date photos of the organisation’s headquarters for media use are available here.  

About EIB Global

EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance.  EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.