Sustainable Innovation Report
The European Investment Bank (EIB) releases a sustainable innovation report, aiming to introduce EIB’s sustainable innovation work in water resources, housing, and economic development.
The European Investment Bank is an EU-affiliated institution and the world’s largest multilateral financial institution and climate financier. The EIB has signed a total of more than 75 billion euros in financing in 2023, of which nearly 50 billion will be used for climate action and environmentally sustainable projects.
Related Post: EBA Releases Sustainable Finance Roadmap
Water Resources and Sustainable Innovation
The European Investment Bank believes that the world needs to invest more in water resources to ensure water supply. In 2050, 40% of the world’s population may live in water-scarce areas, and hundreds of millions of people lack safe drinking water. Water scarcity could also increase the risk of conflict, drive up food prices and contribute to climate migration. At present, the European region needs 90 billion euros in annual water supply-related funds and 60 billion euros in wastewater treatment funds.
The European Investment Bank is one of the world’s largest water investors, investing more than €2 billion annually. EIB’s water priorities include improving water supplies, strengthening wastewater treatment, increasing the construction of desalination plants, and improving flood management. Sustainability Awareness Bonds have invested more than €5 billion in these areas over the past five years. In addition, EIB has also developed two types of innovative financial products, namely sector-based financing, and climate swaps.
Housing and Sustainable Innovation
The European Investment Bank has invested €12 billion in housing over the past decade to improve residents’ living conditions. EIB estimates that the annual investment demand for new housing construction and energy-saving renovations in Europe is 57 billion euros. Housing-related priorities include addressing the shortage of affordable housing, retrofitting energy-intensive housing, and reducing urban sprawl.
The European Investment Bank and the European Union have jointly set up the Urban Investment Support to provide financing for housing projects. These projects can reduce housing energy consumption, with some projects reducing heating bills by more than 50%.
Economic Development and Sustainable Innovation
The European Investment Bank is committed to European economic development and is providing loans and technical assistance to various members to promote the development of sustainable infrastructure, green transportation, clean environment, and other aspects. These priorities include sustainable transport, green energy, digitalization, health and education, and job creation.
In the future, the EIB will provide more funds for digital technologies, strengthen talent training in green innovation, support the diversified development of the energy production structure and increase wind and solar financing.
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