The money will be made available for small and medium-sized businesses and mid-caps, with a particular focus on financing climate-relevant and agricultural projects across the European Union.
The European Investment Bank (EIB) has provided Dutch cooperative lender Rabobank and its subsidiary DLL with a €250 million loan each to boost access to funding for European businesses.
Both Rabobank and DLL said they would be matching their respective €250m loans, meaning a total of €1bn in new funding will be made available for financing climate-relevant and agricultural projects.
Rabobank will focus on supporting small-scale sustainability and agriculture projects undertaken by Dutch businesses. DLL, a global asset finance company for equipment and technology, plans to use the money to boost access to funding for local sustainability investments from SMEs and mid-caps in France, Germany, Italy, Spain, Belgium, Sweden, Poland, Ireland, and the Netherlands.
“It is important to understand that climate financing is a key driver of economic growth. We have to look at the bigger picture, which is that climate change is disrupting business and economic behaviours. We have a long track-record with Rabobank and DLL in terms of climate relevant financing, and hope that this facility can convince other financiers to make available more support for entrepreneurs developing more sustainable projects,” said EIB director general Jean-Christophe Laloux.
OECD report
SMEs should play a key role in the journey to net zero, a 2021 report by the OECD concluded. That’s partly because the share of SMEs in energy use, emissions and other indicators of pollution is considerable. But at the same time, an increasing number of small businesses and entrepreneurs are trying to slash their footprint through innovations, which may contribute to technological solutions for climate mitigation and adaptation, according to the OECD.
The EIB, the long-term lending institution of the European Union, has pledged €1trn of green investment in the decade to 2030. In the past ten years, it has provided the Netherlands with more than €27bn in financing in a wide range of sectors, including research and development, transport, drinking water, healthcare, and SMEs.
“The attractive funding from the European Investment Bank will enhance our ability to provide more accessible, affordable, and tailored leasing solutions, ultimately reducing barriers for our partners and customers to invest in more sustainable equipment and technology,” said Lara Yocarini, a member of the managing board at Rabobank and CEO and chair of the executive board of DLL.
