New European Investment Bank loans addressed to agriculture and bioeconomy value chains
Type of post: NEWS IN BRIEF.
The European
Investment Bank (EIB) is the long-term lending institution of the European
Union. It makes finance available for sound investment in order to contribute
towards EU policy goals. Last 16th April, the EIB announced the
launch of a new financing initiative addressed to the agriculture and bioeconomy
sector (see press
release). This EIB lending programme amounts to 400 M€ and is expected to mobilise
to 1,000 M€ of investment across Europe. The operation will be guaranteed by
the EU budget under the European Fund for
Strategic Investments (EFSI), central pillar of the Juncker Plan. It is
important to mention that, in a new Regulation applicable from early 2018, the
scope of EFSI was extended to include a specific sectorial focus on sustainable
agriculture and bioeconomy.
Figure 1. European Investment Bank
The promotion of bioeconomy value chains is key
to achieving EU objectives on the environment and the low-carbon/green economy.
However, in spite of its size and importance in the overall European economy,
the agriculture and bioeconomy sector is mainly made up of companies and cooperatives
with relatively small investments, which are difficult to target with direct
lending. The program has the potential to overcome this challenge, to fight
against the issue of rural depopulation through the promotion of regional
economic development and to create a multitude of jobs in predominantly rural
areas and smaller towns all over the continent.
Projects allocated under the programme loan will be
implemented in the period 2018-2022. Targeted investments will seek to promote
the efficient and sustainable use of resources and the re-use of by-products,
and to develop intellectual property through the support of private sector
research, development and innovation.
