BNP Paribas has signed an agreement with the European Investment Bank (EIB) that will stimulate up to €8 billion of funding for wind energy projects across the European Union.
This initiative will unlock key investments to support new wind farm projects, supply chain efficiency and improved grid interconnections, accelerating wind energy development and ultimately increasing production.
Under the agreement, the EIB has extended a €500 million counter-guarantee, enabling BNP Paribas, to establish a €1 billion portfolio of bank guarantees designed to back new investments in wind farms in the EU.
The leverage effect of such a counter-guarantee is expected to spur up to €8 billion of investments in the real economy.
The agreement falls under a €5 billion 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.
The programme aims to support the production of 32 GW of the 117 GW of wind capacity needed to enable the European Union to meet its goal of generating at least 45% of its energy from renewable sources by 2030.
This transaction is part of BNP Paribas’ 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 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: “BNP Paribas is pleased to reinforce our historic relationship with the European Investment Bank, this time to support the continent’s growing wind energy sector.
“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, said: “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.”