The EIB Lent €7 Billion to Soiled Transport Initiatives — Evaluation

Final Up to date on: tenth July 2025, 01:59 am

After declaring itself a ‘local weather financial institution’, the EU funding financial institution nonetheless financed new roads and airport expansions.

The European Funding Financial institution (EIB) lent greater than €7 billion for brand spanking new roads, airport expansions and different transport initiatives that may enhance CO₂ emissions. That’s in accordance with a brand new evaluation of its transport mortgage guide between 2021–2024 by inexperienced group T&E. The loans undermine the EIB’s environmental and local weather objectives which it adopted in 2021 when it declared itself the ‘EU local weather financial institution’.

Roads

The EIB lent €6.1bn, greater than three-quarters of its highway infrastructure allocation, to construct new roads, the report finds. T&E mentioned constructing new motorways will increase visitors and highway transport emissions and is of restricted financial profit in an already nicely developed highway community. One motorway in mid-northern Poland obtained €200m from the EIB regardless of it working via nature safety areas — and the financial institution’s personal estimate that it’s going to generate greater than 3,000 tonnes of CO₂-equivalent emissions. On high of this, the financial institution even counts the undertaking in direction of its atmosphere and local weather spending (CA&ES), arguing the motorway would enhance local weather resilience at instances of heavy snow.

Airports

The EIB lent virtually a billion euro (€890m) for initiatives that embrace airport enlargement — in direct contravention of its personal guidelines.[1] Bologna Airport obtained €90m to increase whereas the Spanish airport firm Aena received €800m in direction of its capital expenditure plan. Aena has plans to increase Madrid airport and 12 different airports to satisfy aggressive passenger visitors progress targets. Supporting airport enlargement undermines efforts to cut back aviation emissions and dangers locking in high-carbon infrastructure.

Fuels

On high of the cash lent to highway constructing and airport expansions, six out of the EIB’s 17 transport fuels initiatives have been for the event of biofuels that can’t be produced sustainably at scale (€1bn), the report finds. In a single case, Spanish petroleum firm Repsol obtained €120m for a biofuel plant in Cartagena {that a} latest investigation discovered depends closely on imported feedstock. Wastes imports for biofuels are doubtless topic to widespread fraud with virgin oils, corresponding to palm oil, being handed off as used cooking oil, animal fat and different waste merchandise.

Until Eichler, Sustainable Finance Coverage Officer at T&E, mentioned: “The EIB has made some progress in cleansing up its transport loanbook. However its continued lending of taxpayers’ cash to motorways and airport expansions is including gasoline to the fireplace of the local weather disaster. To grow to be the EU Local weather Financial institution, the EIB must ramp up its assist for emission reductions inside an EU industrial technique. This implies de-risking investments in European manufacturing of e-fuels and batteries and their elements. It’s time the EIB aligns its transport investments with Europe’s local weather and industrial ambitions.”

Cleantech

Simply €0.7bn of EIB loans have been for inexperienced and hydrogen-based e-fuels, the report finds. These applied sciences are key to decarbonising aviation and delivery. T&E mentioned this financing is just not sufficient to maintain Europe forward within the cleantech race and ought to be elevated whereas biofuels lending (€1.1bn) have to be ended. Of the €3.9 billion lent to 17 batteries initiatives, €2.5 billion went into battery manufacturing, the report finds. T&E welcomed the concentrate on batteries however referred to as for larger financing for cleantech elements and supplies the place the EU stays extremely depending on imports.

Constructive steps to construct on

T&E welcomed the €23.6bn in lending for rail upgrades — the EIB’s greatest transport beneficiary. Slightly than supporting megaprojects, the financial institution has co-financed the upkeep and improve of the community and has financed new rolling inventory. T&E additionally praised the €13.3bn in EIB loans to assist cleaner city transport via electrical buses and infrastructure for public transport, strolling and biking.

The EIB will this yr renew its Local weather Financial institution Roadmap for the years 2026-2030. T&E mentioned the up to date roadmap should absolutely align transport lending with reaching the EU’s 2030 local weather targets. Which means:

• No loans for airport enlargement, new roads or biofuels

• In ports, solely electrification, e-fuel readiness and local weather proofing ought to be supported

• Ramping up assist for home cleantech industries, notably the battery worth chain and e-fuels

• Shifting lending from biofuels to e-fuels and hydrogen for planes and ships

• Supporting the electrification of highway transport, together with zero-emission expertise and charging infrastructure

• In rail and concrete mobility, the present concentrate on rail upgrades and zero-emissions city transport ought to be continued.

Until Eichler mentioned: “The Draghi report rightly highlighted how Europe should make investments now to reap the advantages of the inexperienced transition. To this point, that’s not occurring sufficient. The EIB should repair its roadmap to spice up its assist for an EU cleantech sector that’s struggling to be born.”

Word to editors:

[1] “Not supported… Airport capability enlargement.” See Annex 1, Desk C of the EIB Local weather Financial institution Roadmap.

Information launch from T&E.