The European Investment Bank Adopts New Green & Social Policy
The new framework – in force from 1st March 2022 - defines the how the Climate Bank will actively contribute to sustainable development and inclusive growth in the EU.
On 2nd February, the Board of Directors of the European Investment Bank (EIB) has approved the new Environmental and Social Sustainability Framework (ESSF), which aims to drive the bank’s contribution to the targets set by the European Green Deal. The ESSF will apply to new projects as of 1 March 2022.
After the public consultation, the final draft document says the bank will finance operations “that respect human rights, do not cause significant harm to the environment and are consistent with internationally agreed targets to fight against climate change and biodiversity loss.” It also adds that the EIB will “mainstrea[m] environmental, climate and social considerations into its decision-making processes” and align “all its financing with the principles and goals of the Paris [climate] Agreement.” It also lays down how the EIB is going to perform due diligence on investment projects and check their alignment with the EU taxonomy of green activities when relevant.
At the annual press conference hosted at the end of January, EIB’s Chief Werner Hoyer explained that 43 percent of the bank’s investments went to climate action and environmental projects in 2021, and that €27.6 billion went to supporting the green transformation of EU economies.
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