Why the EIB partners with Energiefonds Overijssel: “This public-private partnership is efficient, effective and quite unique in Europe.”

The European Investment Bank (EIB) is the climate bank of the EU. It is one of the largest providers of finance for climate action in the world. Theda Fuchs is active in the selection of projects and partnerships. In this interview, she explains how Energiefonds Overijssel is effective in helping to realise the EU’s climate goals.

Since its establishment in 1958, the EIB has invested over a trillion euros in projects across Europe and worldwide. “The EIB was founded to finance infrastructure,” Theda explains. “But the bank has had a focus on energy projects since the 1970s. For example, many of the grids running through the EU were financed by the EIB. We implement EU policy, so the focus shifts with the policy priorities.”

Mostly green lending
That is why climate action has been a top priority for the EIB over the last decade. “All our investments are fully aligned with the Paris Agreement and take climate into account,” Theda continues. “Our Climate Bank Roadmap outlines our goals for climate finance. Investments in unabated fossil fuel projects are excluded. In 2024, the EIB Group issued €51 billion in green financing – that is 57 percent of our total lending.”

The bulk of the EIB lending is direct investment. To enhance its number one priority: ‘Climate and Environment’, the Bank focuses on furthering the energy transition. Theda: “This means we finance energy efficiency and the wind sector amongst others. And wind involves more than just building wind farms; it also includes strengthening the wind equipment manufacturing sector. We are supporting clean tech companies to enable them to scale up. We invest in offshore wind, onshore wind, big solar projects, interconnectors, grids, and carbon capture projects. Storage, especially on a smaller scale, is something we are looking into.”

Investing in storage
The EIB sees storage as a decentralised solution, not just as a big infrastructure task. “That’s why we invest in research and innovation into storage. We also look into independent storage solutions for wind and solar projects. Household storage facilities are part of our focus too. Additionally, we are happy to invest in battery companies, as they are an important element in the energy transition. Over the past six years, the Bank has provided €6 billion of financing and aims to invest a further €1.8 billion in the battery industry.”

Which technology will ultimately prevail in the energy transition is hard to assess at this point. “We don’t have a clear commitment to finance only one technology. That’s why we are doing research into technology and business cases. We take technology risks and support start-ups, we do not bet on one horse. Thus, we are active in the entire value chain.”

Successful partnership
In 2022, the EIB decided to increase the investment sum of Energiefonds Overijssel with a loan of 50 million euros. Theda: “It’s a good partnership that dates back to 2021. We started our appraisal in 2021, and our first investment was signed in July 2022. This partnership is a great success story for delivering both public sector support and policy goals. The province is engaged and ensures these investments happen in cooperation with the private sector through an active fund manager: StartGreen Capital. Efficient, effective and quite unique in Europe.”

StartGreen Capital is the umbrella company for several funds, including Energiefonds Overijssel. The latter is helping the province of Overijssel to reach their climate goals by investing in the energy transition. “This set-up allows the EIB to channel funding into projects that would otherwise not benefit from it. In this way, we can promote our people-planet-profit approach without governmental bureaucracy.”

Theda likes the fact that the province is still very much involved and is happy to bear the risks. “However, the selection and implementation are carried out by the financial experts of StartGreen – a  fund manager skilled at finding interesting projects, appraising them and making sure the investments meet their goals: realising small scale renewable energy projects that are essential for accelerating the energy transition in the Netherlands.”

Accountable in finance and impact
This cooperation is a framework loan, which means that the EIB gives clearance for the allocations submitted by Energiefonds Overijssel. That is why the EIB monitors the projects of Energiefonds Overijssel closely. “The bank is owned by the EU member states, so we are held accountable in our finances and the impact we make. That’s why we need to assess the risk and the technology and to make sure they meet our criteria.”

Afterward, the EIB draws up a project completion report. “We look at the installed capacity and the generated energy. For us, it’s helpful that Energiefonds Overijssel is accountable in its reporting to the province and to us. We are now getting to the reporting stage, as this investment is almost fully carried out, and we are now looking into a new transaction.”

Making climate transition visible
As becomes clear from the EIB’s Climate Bank Roadmap, the climate goals of EIB and StartGreen align. “The Dutch want to quit gas. That’s important – not only from the perspective of climate action but also for energy independence in terms of security. Over the long term, renewable energy resources with clean, cheap energy help keep the EU an attractive place for industrial production.”

“Both StartGreen and Energiefonds Overijssel are really very well placed to promote our policy goals,” Theda concludes. “Acceptance of the energy transition by EU citizens is key to us. The EIB is primarily known for financing large-scale projects, with direct investments starting around €7.5 million. But the impact of these big initiatives isn’t always as visible to citizens as smaller green energy projects, like those backed by Energiefonds Overijssel.”

Moreover, the EIB aims to strengthen awareness of its role in enabling climate transition. “People see things happening without subsidies, thanks to Energiefonds Overijssel’s support for citizen participation projects that let residents share in the benefits of local green energy initiatives. We want more of that, which is why we are looking into a second transaction. It would be desirable for both parties to continue this cooperation.”