Lilyana Pavlova, Vice-President of the European Investment Bank, shares the bank’s vision for financially supporting cohesion and climate at the 19th edition of the EU Regions Weeks.
By Theodore Bechlivanis, Camila O'Reilly and Dena Ristani (Edited by Vilde Skorpen Wikan)
“You need a good story to write a good article”. These were the words shared by journalist and media expert Guillaume Kuster with a conference room full of bright-eyed young journalists on the eve of the European Union’s Regions Week, taking place in Brussels, Belgium from 10th-15th October. And what better story to write about than the financial outlook of the EU – a topic discussed during the talk with Lilyana Pavlova, Vice-President of the European Investment Bank, on Tuesday.
From the very beginning of the interview, it became clear the European Investment Bank (EIB) is working on paving the way towards sustainability and cohesion one investment at a time. Following a comprehensive and impressively nimble reaction to the COVID-19 pandemic, the EIB is now setting its sights on a green, tight-knit future.
Their confident plan to invest more than half of all funding in the fight against climate change, testifies to the EIB’s trust in the success of an environmentally-friendly Europe. And their determination for promoting cohesion is the much-needed boost for less developed regions that find themselves constantly playing catch-up.
COVID-19 Aid: Solidarity beyond EU borders
When the world was suddenly hit by the COVID-19 pandemic, all EU institutions knew they had to react swiftly. The urgency to fight the economic downturn gave rise to a number of funds designed to get Europe back on its feet. The European Investment Bank, as part of the global response, rapidly adapted procedures to overcome the crisis. Funds were allocated to provide liquidity, special facilities were established in order to bolster the private and public sectors and further financing was assigned to support the Cohesion Regions.
“The EIB has pioneered the deployment of financial instruments,” confirmed Vice-President of the EIB Lilyana Pavlova. A statement that rings true with the creation of the European Guarantee Fund – designed to mobilise billions of euros with the goal of getting struggling businesses back on track after COVID-19. With an initial sum of 25 billion euros, the aim is to generate 200 billion euros to help businesses dust-off and recover from the pandemic.
However, the EU’s support and solidarity didn’t just stay within its member states. Werner Schmidt, Director of the EIB, explained that the institution extended a helping hand to areas outside of the EU.
“We also had a comprehensive response to COVID-19 outside of the EU, such as the Covax vaccination programme." Schmidt said, "A total of 7 billion euros were provided to different projects. Not only in reaction to Covid, but especially so in the last year.”
Cohesion and the Environment: Transversal Objectives
The vast expenses associated with COVID-19 response have many worried that there has been a shift in the EU’s spending priorities. While the pandemic has received more immediate attention than other issues, like climate change, Vice President Pavlova warns that it is unwise to think of these crises separately, as they all fit into the overarching goal of cohesion. A third of the EIB’s funds are currently being invested towards implementing cohesion goals; energy efficiency and further reliance on renewable sources are well within the scope of the cohesion budget. This is all part of the race to continue the EIB’s past work, support less advanced regions, and address the overall climate crisis; a so-called “triple challenge”.
In fact, the EIB has already outlined a series of investments towards climate change mitigation. As the 2021-2027 programming period switches into full gear, the Bank will gradually increase the amount of funds invested in sustainable ventures to reach a staggering 50 percent of its expenses by 2025. This spending agenda is also tailored around a culture of cohesion, as disbursement will be guided by the updated map of EU regions.
Created after collecting large amounts of data from local institutions, this map showcases progress in multiple regions across the continent. It also demonstrates the stark divide in how climate change has affected different parts of Europe. For instance, environmental concerns in the Mediterranean and the Balkans are exacerbated. Information like that is crucial in making nuanced and timely investments in member and non-member states alike. Similarly, mapping out the state of biodiversity across the EU plays an important role in financial decision-making. Being able to accurately record the vast number of Natura 2000 regions (a network of nature protection areas in the EU), unique ecosystems, and population reserves is vital to the success of any steps taken towards protection, mitigation, and restoration of the environment.
A leap of confidence
With such a distinctly defined plan of action, the EIB is making a statement. One that highlights their confidence in the success of an environmentally-friendly and cohesive Europe. This is the story of how a leap of faith became a leap of confidence.
