EU and EIB Launch €5B Guarantee to Unlock Global Investment in Clean Growth

In a landmark announcement at the 4th International Conference on Financing for Development, the European Investment Bank (EIB) and the European Commission introduced a new €5 billion guarantee agreement aimed at catalyzing sustainable investment beyond the borders of the European Union. The innovative financial mechanism is expected to unlock up to €10 billion in funding for transformative projects in clean energy, green infrastructure, and SME financing in partner countries.

This bold initiative reflects the EU’s growing commitment to advancing the Global Gateway strategy—the EU’s flagship investment plan designed to bolster connectivity, digitalisation, and climate resilience in partner regions. The new guarantee also represents a paradigm shift in how the EU supports public interest investments by de-risking ventures that are traditionally seen as too high-risk for conventional financing.

What’s New About This Guarantee?

Unlike previous instruments that exclusively supported state-backed borrowers, this newly structured guarantee allows the EIB to finance a wider range of entities, including:

• Public and private companies with state participation,

• Local or regional authorities operating independently of national governments, and

• Entities borrowing from financial markets without sovereign guarantees.

This added flexibility makes it faster, more agile, and more responsive to the needs of stakeholders in emerging markets and EU partner countries.

“We are one step closer to a connected Mediterranean, especially in energy and SME support. This is key to creating jobs and fostering mutual advantage,” said Dubravka Šuica, Commissioner for the Mediterranean.

Strategic Focus: From Africa to Asia and the Americas

The funding will target priority sectors and regions critical to the EU’s strategic and geopolitical goals. Specifically, the guarantee will:

• Support green energy projects and climate-resilient infrastructure in the Middle East and North Africa (MENA) region, a central pillar of the New Pact for the Mediterranean.

• Finance telecommunications and energy infrastructure, enabling digital inclusion and renewable energy connectivity.

• Empower municipalities in the EU enlargement region and Eastern Neighbourhood countries, supporting local governance and pre-accession alignment.

• Advance connectivity in Central Asia, including the strategic Transcaspian Corridor, vital for diversifying trade routes and securing raw materials.

• Strengthen critical supply chains for raw materials and facilitate green investment in Latin America and the Caribbean, supporting the EU’s broader external engagement under the Global Gateway.

“This agreement will unlock investment in sectors crucial for the integration of accession countries and growth in the Eastern Neighbourhood,” said Marta Kos, Commissioner for Enlargement.

A Major Boost for the Global Gateway Strategy

The announcement is also being hailed as a cornerstone of the EU’s Global Gateway initiative, which seeks to mobilize up to €300 billion in public and private investment by 2027 to promote sustainable infrastructure, green energy, digital connectivity, and social inclusion in partner countries.

“By de-risking investments, we are enabling large-scale projects that would not happen otherwise,” emphasized Jozef Síkela, Commissioner for International Partnerships. “This €5 billion guarantee will help create long-term opportunities for both Europe and our global partners.”

Financing with Development Impact

The new mechanism is designed not only to catalyze economic growth but to ensure that investments are inclusive, climate-aligned, and development-oriented. Target beneficiaries include:

• SMEs and entrepreneurs, particularly in fragile and underserved markets.

• Public infrastructure projects in transportation, health, education, water, and sanitation.

• Clean energy developments, supporting global decarbonization and access to reliable power.

Through the EIB’s financial leverage and the EU’s political support, the guarantee will help make these high-impact projects bankable and affordable, even in complex market environments.

“We are expanding the EU’s ability to invest in everything from clean water and healthcare to transport and critical raw materials,” said Nadia Calviño, President of the EIB. “This makes Europe a reliable and trustworthy global partner.”

Looking Ahead: Strategic Development and Resilience

This €5 billion guarantee underscores the EU’s belief that smart, strategic financing can enhance both global development and European interests. It positions the EU not just as a donor, but as a transformative economic partner, capable of mobilizing capital to meet shared challenges—from climate change and urbanisation to economic recovery and geopolitical stability.

With global uncertainty and mounting development needs, the collaboration between the EIB and the European Commission offers a powerful model for financing a greener, fairer, and more connected world.