The EIB and Hungary’s Development Bank MFB signed a €100 million financing agreement to support energy efficiency investments and renewable energy projects. The operation highlights EIB's commitment to support climate change mitigation and adaptation, as well as the energy security objectives of the European Union.
It is also part of the EIB’s dedicated contribution to the REPowerEU plan to eliminate the EU’s dependence on fossil-fuel imports, while the investments funded thanks to the new financing will contribute to job creation in Hungary.
By supporting building renovations and improved energy efficiency, the agreement is playing a pivotal role in reducing carbon emissions and air pollution, ushering in health benefits by improving air quality. Also, this financing will alleviate energy costs for its end beneficiaries, in the context of recent volatility in energy prices, which has placed a significant burden on businesses.
The EIB's involvement diversifies MFB's financing base, thereby improving access to finance for beneficiaries and reducing financing costs for green projects. The operation is co-financed by the Council of Europe Bank (CEB), for a total of €187 million project cost.
In addition, the EIB will provide advisory support to MFB in the context of the Green Gateway programme financed under the InvestEU Advisory Hub. This advisory assignment will focus on enhancing the capacity of MFB staff in identifying, assessing and reporting on green projects, through targeted recommendations, training, manuals and tools such as the Green Checker eligibility tool.
This article was first published on 20 October by the European Investment Bank.