European Investment Bank to allocate €3 billion for agriculture, forestry and fisheries

The European Investment Bank (EIB) will launch a €3 billion financing package for agriculture, forestry and fisheries, along with measures to strengthen farm insurance. The support is the EIB’s largest financing initiative for European agriculture and will target small and medium-sized enterprises and companies. The new financing is expected to spur investment in a range of activities, including soil health, digital tools, water management and climate resilience.

Financial support for agriculture, forestry and fisheries

The European Investment Bank is the European Union’s long-term lending institution to its member countries. As part of a new financial support package for agriculture, forestry and fisheries, the EIB will provide €3 billion in low-interest loans for agriculture and other bioeconomy-related activities across Europe, with a focus on young farmers, gender equality and green investments. The EIB Group’s loans will be accompanied by action from other financial institutions, unlocking nearly €8.4 billion in long-term investment for the bioeconomy sector. As planned, the support package will be spread over the next three years, with the first loans expected to be signed by mid-2025.

The new funding is expected to spur investment in a range of activities, including those related to soil health, digital tools, water management and climate resilience. The financial support also aims to intensify training in sustainable farming practices and land acquisition for young or new farmers, helping to increase their share of the sector’s workforce. The initiative also targets women, who make up less than_{a third of} farmers.

To ensure favorable lending terms, the EIB is enabling the financing to be supplemented with interest or capital grants from EU and national budgets. Participating financial institutions will also receive additional advisory support through the Green Gateway program and an improved Green Eligibility Verification Tool – an online method for assessing the eligibility and climate impact of green investment projects.

European Investment Bank and cooperation with the European Commission

The European Investment Bank is working with the European Commission to develop new forms of agricultural insurance and programs to mitigate risks associated with extreme weather events. One of these activities is planned financial support for agriculture, forestry and fisheries.

The institution, working with partners, seeks to help meet the challenge for agriculture to produce affordable food, protect agricultural production and livelihoods in the face of climate change, and protect the environment and natural resources.

The European Commission welcomes the EIB’s strong commitment to the EU farming community, especially young farmers and women farmers. Closing the financing gap in this sector is essential, and with the group’s support, the EIB gets the tools to develop and grow. The European Commission intends to work with the Bank to ensure that the new financing opportunity is used on the ground and delivers results.

Actions to adapt to climate change

As part of its increased support for the bioeconomy, the EIB Group is exploring ways to improve insurance against more frequent extreme weather events, including floods and droughts. The European Investment Bank will work with the European Commission, the insurance industry and other stakeholders to explore ways to increase support for current insurance schemes in conjunction with pan-European measures to accelerate investment in climate adaptation or to provide more liquidity and credit risk coverage to businesses affected by climate disasters.

The new initiatives are part of the EIB Group’s action plan in the context of the Strategic Dialogue on the Future of EU Agriculture, launched by European Commission President Ursula von der Leyen in January 2024. We wrote about the details of the summary of the Strategic Dialogue held in a previous article: Strategic Dialogue instead of a European Green Deal?

European Investment Bank

The European Investment Bank finances investments that contribute to EU policy goals. EIB projects enhance competitiveness, spur innovation, promote sustainable development, enhance social and territorial cohesion, and support a fair and rapid transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), has signed new financing totaling €88 billion for more than 900 projects in 2023. The commitments are expected to mobilize some €320 billion in investment, supporting 400,000 businesses and 5.4 million jobs.

All projects financed by the EIB are consistent with the Paris Climate Agreement. The group does not support investments in fossil fuels. More than half of its annual financing is for projects that directly contribute to climate change mitigation, adaptation and a healthier environment. About half of the EIB’s financing in the European Union goes to regions covered by the cohesion policy, where per capita income is less than the European average.