InvestEU, the EU’s flagship investment body, is set to receive the extra guarantees as part of the Omnibus package, which EU policy makers say is expected to mobilise an additional €55bn in public and private investment.
First proposed by the Commission in February, the reforms are designed to give a significant boost to climate-focused projects.
Nearly 40% of InvestEU’s current operations already contribute to climate action. Under the new rules, InvestEU will also be able to reinvest returns from past operations, making it easier for member states to channel further resources into the programme.
InvestEU is a joint initiative of the European Investment Bank and the European Commission. It currently provides €26.2bn in EU budget guarantees to help crowd in private investment across areas including sustainable infrastructure, SMEs, social investment, and research and innovation.
So far, InvestEU has backed projects such as the rollout of large-scale solar and wind farms in Spain, Italy, Portugal, Poland, and Finland, as well as the electrification of transport fleets in France.
