EIB and Cassa Depositi e Prestiti (CDP) have deepened their cooperation with a new agreement that will boost sustainable development in Italy’s public sector. The projects will have important environmental and social benefits, mainly in the central and southern regions of Italy, and €1 billion will be provided in funding.
Under this agreement, EIB has agreed to provide a guarantee amount of €500 million so that CDP will now be able to expand the lending capacity for public sector organisations. “This €500m guarantee agreement by EIB enables us to double the amount available to finance public sector in Italy,” said CDP representatives. “This will enable us to produce actual growth and resilience in places where it matters the most,” Kuhn was quoted in the release. “We will use the money for such critical programs as fighting climate change, building resiliency in the face of weather disasters, and stimulating economic development in all regions of the country.”.
It notably focuses on critical areas of the country devastated by issues such as earthquakes that struck the country almost a decade ago. It is noted to include climate resilience building into its focus as well as an improvement in social cohesion that will ensure no one is to be left behind but certainly not at the expense of a shift towards sustainability.
Thanks to the EIB guarantee, the public sector will access less expensive loans for more easily developed projects. Once again, this is a particular support much needed, in view of Italy’s efforts to face challenges in environmental sustainability and its resilience against climate change, still in progress.
This new agreement is the next step in the successful partnership launched in 2022, focusing on the promotion of economic growth and facilitating the green transition for Italy’s public sector entities. The EIB and CDP will continue their partnership to promote sustainable development and address pressing societal challenges in Italy.
Italy has still faced many complexities in recovery from the economic crisis and has been dealing with very urgent issues, such as climate change. Therefore, a natural extension of the partnership that EIB has with CDP has been an indispensable step toward ensuring public sector initiatives flourish. By opening up this new source of funding, both organizations have better opportunities to create more substantial on-the-ground impact in heading toward a more sustainable and resilient future for Italy.