EIB Boosts Greek SMEs With €1 Billion Green Financing

The European Investment Bank, EIB, has hit an important milestone in its support to sustainable development efforts in Greece with the €1 billion milestone achieved in green financing allocated to Greek small and medium-sized enterprises and mid-caps. Launched in 2020, this funding initiative forms part of the EIB's more general commitment to combating climate change, promoting renewable energy, and advancing energy efficiency. It therefore aligns with Greece's ambitious goals for decarbonization and sustainable economic growth, showcasing the pivotal role financial institutions can play in fostering environmental and economic resilience.

The latest development in the program includes an additional €250 million in funding provided to the National Bank of Greece (NBG). This new allocation raises the total participation of NBG in the EIB's green financing program to €800 million, thereby cementing its position in Greece's transition towards a greener economy. This proactive engagement of NBG in absorbing 80% of the total €1 billion programme funding demonstrates its commitment to sustainability and a champion of green projects nationwide.

Speaking on the milestone, EIB Vice-President Yannis Tsakiris said that the bank's green activities are very important for Greece. "Achieving this €1 billion milestone underscores the EIB's continued commitment to supporting Greece's green transition and to promoting sustainable economic growth," Tsakiris said. The funding allows hundreds of Greek companies to access preferential loans for renewable energy projects, energy efficiency upgrades, and other environmentally focused initiatives, contributing to both economic and ecological progress.

This program of EIB has received widespread participation from Greece's financial institutions, such as Piraeus Bank, but NBG has been the principal partner in this initiative, taking the major share of the funding. Pavlos Mylonas, CEO NBG, stated with pride that the bank has been supportive of the initiative. "NBG has absorbed 80% of the €1 billion total program financing, which illustrates our continuous commitment to supporting Greek SMEs and mid-caps while allowing us to further grow our green projects' portfolio," Mylonas said.

The green financing initiative addresses various challenges and opportunities, focusing on three critical areas: climate action, renewable energy, and social inclusivity. Investments in renewable energy and energy efficiency projects reduce carbon emissions while promoting sustainable sources of energy. Moreover, this initiative appreciates social equity through support to women's empowerment and youth employment, making the transition to a green economy inclusive and empowering for Greece.

Since the program was launched, over 350 Greek businesses have received financing in the form of loans on favorable terms. The businesses belong to a wide range of sectors that are linked to sustainability and climate action, reflecting the diversity of applications of green financing in driving economic transformation. It will mobilize up to €2 billion in total financing for green projects because, according to the regulation, the banks participating, like NBG, are obligated to match the financing extended by the EIB. Not only does it multiply the effectiveness of the programme but also motivate local banks to be active partners in sustainable development.

This the EIB and NBG is a long-standing partnership that has already delivered over €2 billion in financing over the past five years. It has mobilized an additional €3.8 billion for Greek SMEs and mid-caps, demonstrating a deep potential from a strategic financial partnership. By drawing on their resources and expertise, the EIB and NBG are actors toward driving sustainable growth, as well as strengthening Greek economic resilience to address the challenge of climate change.

It extends the programme beyond just financing, cultivating a culture of sustainability among Greek businesses and financial institutions. The programme sends a very strong message regarding the role of green investment in achieving long-term economic and environmental goals. It is providing the resources to businesses to change to greener operations, thereby paving the way for a more sustainable future for Greece.

Ahead, the EIB will continue to expand its green financing initiatives not only in Greece but also beyond. With a growing focus globally on climate action and sustainability, the bank's efforts in promoting renewable energy, energy efficiency, and inclusive growth will play an important role in shaping the future of Europe's economy. The EIB's €1 billion for Greece is more than just a financial milestone but a testament to the country's potential to lead in sustainability and innovation.

With more cooperation with the likes of NBG, positive ripples effects of the EIB's green financing program should spread across various industries and communities, thereby enhancing the economic growth and environmental stewardship relationship. This initiative sets a new paradigm for Greece and the world, making it the benchmark for financial investment to pursue sustainable development objectives.