BNP Paribas has signed an agreement with the European Investment Bank (EIB) that will stimulate up to €8bn of funding for wind projects across the EU.
Under the agreement, the EIB has extended a €500mn counter-guarantee, enabling BNP Paribas, to establish a €1bn portfolio of bank guarantees designed to back new investments in wind farms in the EU.
The programme aims to support the delivery of 32GW of the 117GW of wind capacity needed to enable the EU to meet its goal of generating at least 45% of its energy from renewable sources by 2030.
The leverage effect of such a counter-guarantee is expected to spur up to €8bn of investments in the real economy.
The agreement falls under a €5bn initiative announced by the EIB in support of the European Wind Power Package presented by the European Commission in October 2023.
The initiative aims at accelerating wind energy deployment and strengthening the competitiveness of Europe’s wind industry.
This transaction is part of BNP Paribas’ long-standing commitment to supporting the energy transition by directing its financing towards low-carbon energy, which will account for at least 90% of the bank’s energy production financing by 2030.
EIB Vice-President Ambroise Fayolle (pictured) said: “Guarantees, like the ones EIB provides through this new financial instrument, contribute to enable the funding of essential projects that drive the green transition, support the decarbonization of the European economy, and strengthen industrial competitiveness.”
Alain Papiasse, Chairman of Corporate and Institutional Banking at BNP Paribas, said: “This partnership reflects our mutual commitment to advancing sustainable energy projects that strengthen the continent’s economy while reducing its carbon footprint.
“By uniting our expertise and resources with the EIB’s pivotal support, we hope to help drive lasting, positive projects for communities, businesses and the environment.
Yannick Jung, Head of Global Banking at BNP Paribas, added: “We see the EIB’s invaluable support in this partnership as a way of accelerating our ongoing strategy to facilitate the transition to a Low Carbon Economic Model.
“By supporting European Corporates along the Wind Value Chain, we believe our collective efforts will inspire innovation, foster sustainability and pave the way for a more robust Europe.”