NEWS

25 July 2019

EIB, banking institutions launch EUR 10 billion circular economy initiative

The European Investment Bank (EIB) has teamed up with multiple national banking institutions to support the circular economy in Europe. The partnership will target more than EUR 10 billion of investments to prevent waste, increase resource efficiency and foster innovation across multiple sectors of the European economy.

On 18 July 2019, the Luxembourg-based EIB announced it had teamed up with five “national promotional banks and institutions” from Poland, France, Italy, Spain and Germany to deliver the Joint Initiative on Circular Economy (JICE) with initial investments spanning the next five years (2019-2023).

Supporting the circular economy transition

According to the EIB, JICE will provide “loans, equity investment or guarantee eligible projects and develop innovative financing structures for public and private infrastructure, municipalities, private enterprises of different size (sic) as well as for research and innovation projects”.

In particular, this means supporting investments in European Union member states that accelerate the transition to a circular economy, targeting all stages of the value chain and life cycle of products and services.

This will include investments in circular design and production – applying “reduce and recycle” strategies to design out waste at source – and enabling the “reuse, repair, repurposing, refurbishing or remanufacturing of products in use phase”. The recovery of material and other resources from waste will be equally important.

Stemming the tide of waste

EIB president Werner Hoyer said: “Fighting global warming and environmental crises is the most urgent challenge of our time. Strengthening the circular economy is one of the most powerful tools in our arsenal. It will not only help the Paris Agreement target but also bring huge benefits for the economy and society.”

Dr Hoyer added: “With the Joint Initiative on Circular Economy, we are scaling up our ambition and joining forces with our peers to stem the tide of waste.”

The five banking institutions joining the EIB in the initiative are: Bank Gospodarstwa Krajowego (BGK), Groupe Caisse des Dépôts (CDC) (France), Cassa Depositi e Prestiti (Italy), Instituto de Crédito Oficial (Spain) and Kreditanstalt für Wiederaufbau (KfW) (Germany).