EIB Approves €16 Billion Financing for Ukraine, Green Transition, and Global Growth

A significant share of the new financing—€5.4 billion—is dedicated to advancing Europe’s climate and energy security agenda.

The European Investment Bank (EIB) has announced a sweeping new financing package worth €16 billion, with investments directed toward Ukraine’s energy security, Europe’s green transition, urban development, small business competitiveness, and global partnerships. The funding decisions were approved by the EIB’s Board of Directors, underscoring the institution’s growing role in supporting both immediate recovery efforts and long-term sustainability goals.

Driving Europe’s Green Transition

A significant share of the new financing—€5.4 billion—is dedicated to advancing Europe’s climate and energy security agenda. This funding will be used to accelerate renewable energy adoption, enhance grid resilience, and support innovative clean energy solutions across member states.

Key projects include:

• Baltic Sea offshore wind farm – expanding renewable capacity and diversifying Europe’s energy supply.

• Italy – installation of small-scale solar photovoltaic plants and new battery storage facilities.

• Germany – modernisation and expansion of electricity grids to accommodate renewable power flows.

• France – financing new renewable energy initiatives and energy efficiency projects.

• EU-wide – scaling up energy-saving programmes to help reduce carbon emissions.

In addition to energy, the EIB approved funding for urban and infrastructure projects: improved water and wastewater management in Belgium, new schools in France and Lithuania, urban development initiatives in Croatia and Poland, and sustainable transport upgrades in France.

Unlocking Finance for SMEs

To support Europe’s economy, the EIB has launched a new securitisation and guarantee facility expected to unlock over €13 billion for small and medium-sized enterprises (SMEs). The mechanism allows banks to package loans into products investors can buy, freeing up capital for new lending while sharing risk across markets.

This initiative is seen as a major step in deepening Europe’s capital markets, boosting the competitiveness of SMEs, and advancing the EU’s Savings and Investments Union. The EIB’s leadership in the securitisation market positions it as a key player in bridging financing gaps for businesses and households.

Ukraine: Urgent Energy and Housing Support

In recognition of Ukraine’s urgent needs amid Russia’s ongoing war, the EIB Board approved a €500 million package to strengthen the country’s energy resilience and housing capacity.

• Naftogaz Energy Security: The loan will allow Ukraine’s state-owned energy utility, Naftogaz, to replenish natural gas reserves before winter, addressing critical shortages caused by Russian attacks on energy infrastructure. Importantly, Naftogaz has pledged to reinvest an equivalent amount in renewable energy and decarbonisation projects, with EIB technical assistance ensuring a transition to cleaner energy sources.

• Social and Affordable Housing: The EIB will also finance housing reconstruction, beginning with a pilot project of 1,600 affordable housing units, supported under the EU Ukraine Investment Framework.

EIB President Nadia Calviño emphasised the institution’s commitment:

“The EIB Group has achieved cruising speed in delivering for Ukraine’s most urgent needs, including in the area of energy security. The package approved today shows our unwavering commitment and support to the country.”

The European Commission will guarantee the Naftogaz loan under the Ukraine Investment Framework, reinforcing EU solidarity with Kyiv.

Strengthening Global Partnerships

Beyond Europe and Ukraine, the EIB is also expanding its international financing footprint to tackle global development and climate challenges. The Board approved investments aimed at:

• Brazil (Amazon Region): Supporting climate and gender equality initiatives.

• Mauritania: Financing renewable and green energy projects to support sustainable growth.

• Pakistan: Improving water supply and water security.

• Nigeria: Backing small businesses in the green and digital economy.

These projects reflect the EIB’s role as both “Europe’s climate bank” and a global development partner, aligning its financing with EU foreign policy objectives.

A Comprehensive Investment Vision

The €16 billion financing package represents the EIB’s strategic blend of immediate crisis response—particularly in Ukraine—and long-term structural investments in sustainability, competitiveness, and inclusion. By investing in energy security, climate resilience, SMEs, and global partnerships, the Bank continues to position itself at the centre of Europe’s response to both geopolitical instability and the climate challenge.