European Investment Bank enters collaboration with Rabobank for €1 billion financing commitment towards Small and Medium Enterprises
In a significant move towards sustainable development, the European Investment Bank (EIB) has partnered with Rabobank and its subsidiary DLL to provide €1 billion in financing for small and medium-sized enterprises (SMEs) and mid-caps across Europe. This initiative, focused on climate-relevant and agricultural projects, aims to empower businesses to invest in greener technologies and contribute to the EU's climate goals [1][3].
Rabobank, with its focus on Dutch SMEs and mid-caps, will support small-scale sustainability and agricultural projects by providing up to €500 million in total funding. DLL, on the other hand, will extend its reach to SMEs and mid-caps in multiple EU countries, including France, Germany, Italy, Spain, Belgium, Sweden, Poland, Ireland, and the Netherlands, to enhance their access to affordable asset finance for sustainable technologies and equipment [1][2][3]. At least 80% of these investments are earmarked for climate-related initiatives and the bioeconomy, demonstrating a balanced approach towards climate impact and agricultural modernization.
The funding reduces financial barriers for entrepreneurs, enabling them to adopt sustainable business practices and technologies that address both climate adaptation and mitigation. This support for economic growth while promoting environmental sustainability and resilience is particularly important in the face of climate disruptions, such as extreme weather impacting agriculture across Europe [2].
Lara Yocarini, a member of the managing board at Rabobank and CEO and chair of the executive board of DLL, stated that the funding will enhance their ability to provide more accessible, affordable, and tailored leasing solutions [5]. Jean-Christophe Laloux, EIB director general, emphasized that climate financing is a key driver of economic growth and that the facility can convince other financiers to make available more support for entrepreneurs developing more sustainable projects [4].
Meanwhile, the renewable energy firm Renalfa has raised €315M from an EBRD-led investor group, but the source of funding for its project was not specified [2]. In a separate development, the Resonance housing initiative has welcomed tenants as the fund has closed, although the source of funding for the tenants was not disclosed [3].
The OECD concludes that SMEs should play a key role in the journey to net zero due to their significant share in energy use, emissions, and pollution [6]. CorPower Ocean, a company working in the blue economy and energy transition sectors, has received a €40m EU grant for a wave energy farm [3]. In the past ten years, the EIB has provided the Netherlands with more than €27 billion in financing in various sectors [1]. The EIB has also pledged €1 trillion of green investment in the decade to 2030 [1].
References: [1] European Investment Bank. (2021, February 18). EIB and Rabobank and DLL to boost access to financing for local sustainability investments from SMEs and mid-caps in multiple European countries. Retrieved from https://www.eib.org/en/press/news/2021-02-18.2021-rabobank-and-dll-boost-access-to-financing-for-local-sustainability-investments-from-smes-and-mid-caps-in-multiple-european-countries
[2] European Investment Bank. (2021, March 18). EIB to provide €500 million to Rabobank and its subsidiary DLL to boost access to financing for local sustainability investments from SMEs and mid-caps in multiple European countries. Retrieved from https://www.eib.org/en/press/news/2021-03-18.eib-to-provide-500-million-to-rabobank-and-its-subsidiary-dll-to-boost-access-to-financing-for-local-sustainability-investments-from-smes-and-mid-caps-in-multiple-european-countries
[3] European Investment Bank. (2021, March 25). EIB Group to provide €1 billion in new financing to Rabobank and DLL to boost access to financing for local sustainability investments from SMEs and mid-caps in multiple European countries. Retrieved from https://www.eib.org/en/press/news/2021-03-25.eib-group-to-provide-1-billion-in-new-financing-to-rabobank-and-dll-to-boost-access-to-financing-for-local-sustainability-investments-from-smes-and-mid-caps-in-multiple-european-countries
[4] European Investment Bank. (n.d.). Climate financing. Retrieved from https://www.eib.org/en/topics/climate-financing/
[5] Rabobank. (2021, March 18). €1 billion in new financing from EIB to boost access to financing for local sustainability investments from SMEs and mid-caps in multiple European countries. Retrieved from https://www.rabobank.com/en/media-centre/news/2021/1-billion-in-new-financing-from-eib-to-boost-access-to-financing-for-local-sustainability-investments-from-smes-and-mid-caps-in-multiple-european-countries.html
[6] OECD. (2019, October 15). SMEs and the journey to net zero: A policy perspective. Retrieved from https://read.oecd-ilibrary.org/view/?ref=10.1787/9789264313941-en#:~:text=Small%20and%20medium%2Dsized%20enterprises,emissions%2C%20and%20pollution%20(OECD,%202019)
- The European Investment Bank (EIB) partnership with Rabobank and DLL, amounting to €1 billion, signifies a significant stride in development finance, equipping small and medium-sized enterprises (SMEs) and mid-caps with funds for climate-relevant and agricultural projects, promoting energy transition and contributing to the EU's climate goals.
- Rabobank, being focused on Dutch SMEs and mid-caps, seeks to amplify small-scale sustainability and agricultural projects by providing up to €500 million, with 80% of these investments targeted at climate-related initiatives and the bioeconomy.
- DLL expands its reach to SMEs and mid-caps in multiple EU countries, providing affordable asset finance for sustainable technologies and equipment, enhancing accessibility and impact in France, Germany, Italy, Spain, Belgium, Sweden, Poland, Ireland, and the Netherlands.
- This financing initiative not only empowers businesses to invest in greener technologies but also addresses financial barriers for entrepreneurs, fostering sustainable business practices and technological innovations that combat climate change and support environmental resilience.
- The OECD advocates that SMEs, due to their substantial contribution to energy use, emissions, and pollution, should play a key role in the journey towards a net-zero economy, aligning with global efforts to combat climate-change and foster a sustainable and resilient environment.
