What changed

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

P9_TA(2024)0107

on the financialFinancial activities of the European Investment Bank - annual report 2023

(2023/2229(INI))

Committee on Budgets

PE757.274

European Parliament resolution of 28 February 2024 on the financial activities of the European Investment Bank - annual report 2023 (2023/2229(INI))

The European Parliament,

C. whereas in order to achieve the EU’s climate targets, investments of EUR 1 trillion a year are needed in the EU; whereas the EIB can help bridge the gap by crowding in private capital;

D. Whereaswhereas over 2021-2027, InvestEU’s EUR 26.226,2 billion guarantee, with provisioning from the multiannual financial framework and NextGenerationEU, is expected to mobilise more than EUR 372 billion in additional private and public investment in Europe, mainly for sustainable infrastructure, research, innovation and digitalisation, small and medium-sized enterprises (SMEs), and social investment and skills;

Overview of policies and operations

10. Recalls that the green transition must be inclusive and fair, and that green investments must be viable, and expects the EIB, therefore, to leverage its lending, financial instruments, technical assistance and advisory services to support citizens and businesses that face socio-economic challenges deriving from their efforts to achieve climate neutrality by 2050 at the latest; invites the EIB to support projects delivering affordable access to renewable energy, housing and public services, community-led initiatives and small projects with a particular focus on fighting energy poverty as a priority;

11. Welcomes the fact that the EIB has already met its target of devoting at least half of its resources to climate action and environmental sustainability and that it is on track to meet its target of supporting EUR 1 trillion in green investments by 2030; expects the review of the Climate Bank Roadmap in 2024 to bring the EIB fully into line with the 1.51,5 degree pathway and the target of climate neutrality by 2050 at the latest, while ensuring a just transition for all; believes that the benchmark should be the most ambitious public banking practices; reiterates its call to include a solid assessment of less carbon-intensive alternatives and ‘Scope 3’ emissions for each project;

12. Welcomes the Paris Alignment of counterparties (PATH) and expects its full implementation both as regards maximising emissions reduction and enhancing climate resilience; takes note of the EIB’s response to the emergency energy situation in the EU by adapting the PATH; expects the exemptions granted under the PATH framework in support of REPowerEU to be exceptional, temporary and fully justified in order to be able to speed up the green transition and to end Europe’s dependencies on fossil fuel imports, including from Russia; welcomes, in this context, the increase in EIB support to REPowerEU to EUR 45 billion in loans and equity financing for projects in the area of renewables, energy efficiency, grids and storage, electric-vehicle charging infrastructure, and breakthrough technologies over the next years;

13. Recalls that all corporate clients of EIB financing are contractually required to create and publish a credible Paris alignment strategy (‘decarbonisation plans’), which will include mid-term, rolling, quantitative emissions reduction targets and options over a longer time frame in order to achieve climate neutrality by 2050 at the latest; expects the EIB to systematically evaluate the credibility of these plans, applying decarbonisation criteria compatible with the 1.51,5 degree target before signing any new financial commitments; reiterates its call for the EIB to work only with financial intermediaries that have a credible decarbonisation plan, including short-term targets that are compatible with the 1.5-degree1,5-degree pathway and that will be put in place as soon as possible and by 2025 at the latest; stresses that such new requirements must not be to the detriment of access to finance for SMEs;

14. Stresses the key role played by the EIB in ensuring a just transition; calls on the EIB to lower the minimum loan amount for individual projects or loan schemes contributing to the just transition; encourages the EIB to intensify cooperation with national and regional financial institutions to deliver targeted financing; calls on the EIB to contribute to achieving the EU’s objectives on equality between women and men in this context; welcomes the involvement of the EIB in the EU Just Transition Mechanism in order to address the socio-economic impact of the transition to net-zero economy and to generate new opportunities for sustainable development in eligible regions;

23. Recalls that SMEs are the backbone of Europe’s economy; recalls that the EU’s 23 million SMEs account for 99 % of all businesses, provide around three quarters of all jobs and generate more than 50 % of the total added value produced by EU businesses; underlines that supporting SMEs is a key objective for the EIB Group; points out that the energy crisis and the consequences of Russia’s war in Ukraine pose further challenges for SMEs, as do increasing raw material prices and rising interest rates;

24. Recalls that in 2022, the EIB Group provided financing amounting to a total investment of EUR 16.3516,35 billion for SMEs and mid-caps; notes that according to the EIB Group’s assessment, EIB Group operations providing debt support to SMEs totalled almost EUR 20 billion in annual net signatures between 2010 and 2020; calls on the EIB Group to reflect on ways to further facilitate its support to SMEs, in particular for smaller financing projects;

25. Highlights the role of the EIF in improving access to finance for smaller EU companies, mid-caps and start-ups and thereby its support to entrepreneurship, growth, innovation, research and development, and employment in the Union; points out that stable energy supply at competitive prices is one of the foundations of a successful industrial policy, and in particular of successful SMEs; calls on the EIB Group to provide additional growth capital to enable SMEs to scale up their operations; urges the EIB Group to increase support directed at scaling up European start-ups, including by taking greater risks in disbursing venture capital to ensure that European start-ups are able to scale up inside rather than outside the EU;

30. Underlines the fact that Russia’s war of aggression has also impacted regions in the EU and caused significant economic impacts, especially in the eastern border countries of the EU and its neighbourhood, as well as a severe humanitarian crisis; stresses that the changes in supply chains and trade and economic relations caused by the war should be taken into account in future investment planning; calls for the EIB to take into consideration the geopolitical situation and investments needed in frontline countries, including infrastructure and border management;

31. Recalls that the Russian war of aggression against Ukraine is a game changer, as it has fundamentally altered the European security environment and requires an increase in defence readiness and therefore sufficient investments; emphasises the need to make the most effective use of all the instruments at the EIB’s disposal; calls on the EIB to enhance its support to the Strategic European Security Initiative and to the European defence industry, including SMEs, in particular to contribute to continued support for Ukraine; calls on the EIB to reform its eligibility list so that ammunition and military equipment that go beyond dual-use application are no longer excluded from EIB financing;

EIB Global

43. Encourages the EIB vice-presidents to avoid involvement in project proposals from their home countries; invites the EIB to fully implement all of the Ombudsman’s recommendations of 27 July 2022 from Case 1016/2021/KR and of 31 October 2023 from Case 611/2022/KR as regards the activities of former members of its Management Committee; invites the EIB Management Committee members to publish their scheduled meetings with external stakeholders and reiterates its request for the systematic publication of the content of the meetings of the EIB’s governing bodies, to further improve transparency;

44. Notes that the EIB has made progress in achieving a more gender balanced workforce, although women remain underrepresented in senior positions and in core areas of activity; regrets that the EIB did not reach its gender targets set for women at various levels in its 2018-2021 EIB diversity and inclusion strategy; callscalls, therefore, on the Bank, therefore,Bank to step up its efforts to increase gender diversity to achieve gender parity and a better balance of genders across all functions and in particular in senior and managerial positions, whilewhilst also maintaining geographical balance; calls on the EIB to further enhance the promotion of all forms of diversity and inclusion;inclusion within its organisation and to set ambitious targets;

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45. Instructs its President to forward this resolution to the Council, the Commission and the European Investment Bank.

EXPLANATORY STATEMENT

The annual report for the year 2023 (alternating with ECON) on the financial activities of the European Investment Bank touches upon EIB’s performance and delivery by the EIB Group on its treaty-bound obligations to foster and contribute to EU integration and key horizontal EU policies.

The report focuses on evaluation of main EIB funding activities with special emphasis on development of the EU Climate Bank, on crisis response to the war in Ukraine, activity of the EIB Global and delivery on key policy areas.. The report also touches upon EIB’s governance, transparency and accountability, firmly scrutinising issues related to conflict of interest and recommendations of the Ombudsman.

The European Investment Bank has been striving to transition into the EU Climate Bank, committing to stepping up its climate financing. For the year 2022 however, the EIB achieved a total level of green financing at EUR 36.5bn, which represented 58 % of total financing volumes, which exceeded the original target of 50 % green financing expected by 2025. While the EIB Group has not yet announced the results and numbers for 2023, it is expected that the Bank has stayed on track from the previous year. The report makes several policy recommendations to the lending policies that need to be made and/or implemented in order to truly be the EU Climate Bank as well as input for the Climate Roadmap review and to enhance investment contribution to halting or reversing biodiversity loss and nature protection.

EIB Global plays a key role in the EIB’s expansion outside of the EU and thus its contribution to the execution of the EU’s foreign and development policies goals and is fully aligned with the EU’s climate and environmental policies.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he has received input from the following entities or persons in the preparation of the report, until the adoption thereof in committee:

The list above is drawn up under the exclusive responsibility of the rapporteur.

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