EIB and CDP provide public authorities with €200 million to finance sustainability projects
Press release

EIB and CDP provide public authorities with €200 million to finance sustainability projects

  • This is the first operation in Europe to promote green investments by local authorities and public sector entities.
  • The EIB partnership will enable CDP to provide this financing with competitive and accessible rates, expanding the number of potential beneficiaries.
  • A separate agreement for advisory services and monitoring of environmental sustainability investments has also been finalised.

 

Rome/Luxembourg, 23 January 2023 - The European Investment Bank (EIB) and Cassa Depositi e Prestiti (CDP) have signed a new €200 million agreement to stimulate the investments of local authorities and public sector entities across Italy, aiming to accelerate the green transition with projects promoting sustainable mobility, improving energy efficiency in buildings and protecting the environment from future climate shocks. This is the first operation between the EIB and CDP focusing exclusively on public sector green investment.

The agreement builds on an already fruitful partnership, with each of the two institutions providing €100 million in 2023 to benefit public (particularly local) authorities, which will receive more accessible interest rates.

CDP will take advantage of the EIB’s favourable interest rate conditions on the international markets to develop a financial product exclusively for green investments. This will allow it to pass on the benefits of EIB financing to final beneficiaries, enabling entities that plan to invest in sustainable infrastructure to make major financial savings. The operation will make it possible to reach a significant number of public authorities across Italy, including those that do not normally have direct access to EU bank financing. This will bring two benefits: stimulating the local economy, and meeting the targets of the National Recovery and Resilience Plan (NRRP) linked to the European Green Deal.

The credit line will target areas including green projects for schools and public buildings, cycling, renewable energy, reforestation, waste disposal and public transport.

In addition, a separate agreement between the two institutions will enable CDP to benefit from the EIB’s advisory services to expand its environmental sustainability financing, as outlined in its 2022-2024 Strategic Plan. The EU bank’s advisory services — developed under the Green Gateway programme launched by the EIB and the European Commission — will help to improve the eligibility assessment and monitoring of the impact of green projects and, at the same time, to expand the knowledge of EIB financial intermediaries concerning the EU green taxonomy.

CDP’s experience and extensive local connections make it our main partner in supporting the green transition in Italy. This operation will act as an example to promote future cooperation between the two institutions to support green investments from the Italian public sector,” said EIB Director for financial operations in Italy Gilles Badot. “As the EU climate bank, the EIB is aiming to unlock €1 trillion in green investment by 2030, supporting the REPowerEU programme and the European Green Deal.

The agreement signed by the EIB cements the fruitful partnership between our two institutions in creating development opportunities for Italy by making the best use of EU funds,” added CDP Business Director Massimo Di Carlo. “The financing provided will grant a major boost enabling local authorities to accelerate the green transition as outlined in the NRRP, with favourable investments making a significant impact on the ground and on local communities.

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