European Investment Bank (EIB)

The European Investment Bank (EIB) aims to advance the take-up of sustainable transport solutions by mobilising private investment and ensuring a balanced regional development at the same time.

In addition to their financing, EIB provides technical assistance and advisory support. An overview of sustainable transport projects and activities of EIB is provided here.

Moreover, as part of their Climate Bank Roadmap 2021-2025 , the EIB Group will revise its Transport Lending Policy in order to review more formally its approach towards supporting a sustainable transition of the transport sector and set priorities right.

In this article, more detailed information is given on two relevant financing windows for sustainable transport: The Cleaner Transport Facility and the City Climate Finance Gap Fund. 

Cleaner Transport Facility

The EIB furthermore promotes the deployment of alternative fuels and cleaner technologies for more sustainable transport through the Cleaner Transport Facility (CTF), which was launched in December 2016 by the EIB and European Commission (EC). The CTF aims at assisting investments from both public and private actors in low-carbon transport projects through existing EIB financial products and new financing instruments.

Learn more about the Cleaner Transport Facility in giving an overview of opportunities for financing as well as the next steps for the facility and case studies of supported projects.

What types of projects are eligible?

Projects implementing cleaner buses and private vehicles operating on alternative fuels electricity, hydrogen, biofuels, natural gas) with lower greenhouse gas emissions or enhanced environmental performance compared to conventional internal combustion engines

One exemplary project financed is Las Palmas MetroGuagua 

Financing instruments
  • Loans, equity and guarantees as well as new financial instruments channelled InnovFIN programme under Horizon 2020
  • Life-cycle cost models involving risk-sharing financial instruments that mobilise private sector funds, rather than more traditional models entailing higher capital investment with a debt burden on the public sector
Contact for applying for financial support from the CTF  

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General project cycle at EIB

Find more information on the general project cycle here: Project cycle (eib.org)

Sources and more information

The City Climate Finance Gap Fund

The City Climate Finance Gap Fund was implemented by World Bank and the European Investment Bank (EIB) in cooperation with GIZ on 23 September 2020. It is a new partnership supporting green inclusive, resilient, creative and competitive cities in developing and emerging economies. 

The Gap Fund provides grant funding and free technical assistance to cities for early-stage planning and project preparation (e.g. defining the project concept, enhancing project bankability and identifying potential sources of finance). It aims to facilitate the preparation of investments, improve quality and ensure the bankability of projects.

What types of projects are eligible?

Projects with a focus on 

  • Sustainable urban mobility
  • Energy efficiency and small renewables, including building retrofits, street lighting, district heating and cooling
  • Solid waste management and circular economy activities
  • Water and wastewater management
  • Greening of urban areas, nature-based solutions, blue/green infrastructure, ecosystem restoration and centred urban planning
  • Green buildings, including sustainable/climate-friendly building materials and eco-districts
  • Adaptation to established climate vulnerabilities
  • Affordable housing with an energy-efficient approach
  • Multi-sector, area-based investment programmes, including slum/informal settlement upgrading, brownfield redevelopments, urban extensions or corridor development.

Find more information on eligibility criteria here.

Who can apply for advisory and technical assistance?

All cities, municipal authorities or local governments in low and middle-income countries on ODA – OECD DAC list can directly apply for support.

How to apply?
  1. Filling in the expression of interest at www.citygapfund.org
  2. Review and assessment of expression of interest by the Gap Fund team
  3. In case of eligibility for advisory and technical assistance, detailed assessment of the proposal by the EIB or the World Bank Gap Fund Secretariat and potential request for further details and clarifications during a virtual or in-person meeting
  4. In case of successful application, definition of Terms of Reference between the Gap Fund team and the applicant, either directly by the Gap Fund team or with the support of external consultants
Financing instruments

Grant funding

Please consider that the Gap Fund does not directly provide financing for the underlying investment at the implementation phase of the project.

Examples

The following two articles include information about which cities have successfully received technical assistance grants:

Sources and more information

European Investment Bank. Photo by Gwenael Piaser on flickr.
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Published by:
Ronja Kwasniok