Brussels, 2 May 2023 (TDI): Europe is the world’s top provider of climate and development financing. The European Commission has set out a Global Gateway plan which envisions boosting smart, clean, secure links in the digital, energy, and transport sector.
Global Gateway is a new European strategy to strengthen health, education, and research systems across the world. With financing of €18 billion, the project aims to support the EU’s partners for a more resilient world and improve the lives of people.
European Investment Bank has announced €18 billion in financing the project under Europe’s investment strategy for the partner countries.
The Global Gateway’s priority areas include climate action, clean energy, and connectivity in Europe’s partner countries around the world. The projects under Global Gateway aim to bridge the global climate finance gap and support prevention, adoption, and mitigation.
The President of the European Commission, speaking at the Global Citizen NOW Summit in New York, said, “Europe is already the top provider of climate finance globally and of official development assistance. But more is needed to bridge the climate finance gap – and everyone needs to chip in.
This is where our investment strategy Global Gateway comes into play. Global Gateway invests in the projects our partners need – from natural risks prevention to clean transport and energy infrastructure.”
She further added that the project will advance the climate transition, improving the lives of people as well as making partners more resilient.
Werner Hoyer, President of the European Investment Bank, stated, “Thanks to our solid partnership with the European Commission, EIB Global has already mobilized investments amounting to €31 billion under Global Gateway.
This new financing package unlocks more EU support for projects that will make a real difference in partner countries and some of the areas of the world most in need of transformation.”
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Further adding on, he said that the project will contribute greatly to achieving Sustainable Development Goals.
Background
The Global Gateway is the EU’s strategy which offers support to its partners for resilient and sustainable development. The initiative narrows the global investment gap with value-driven investments from the public and private sectors.
It supports global economic recovery embracing green and digital transition outside the EU. Global Gateway also aims to mobilize €300 billion in investments between 2021 and 2027. It offers a mix of grants and concessional loans.
The initiative as well guarantees de-risk private sector investments.
EIB Global is the development arm of the European Investment Bank. It will mobilize around €100 billion of this target. Financing from the European Investment Bank has already mobilized €31 billion.
The European Commission will provide an EU budget guarantee to back €8.3 billion of EIB lending to Global Gateway. EIB Global will now provide an additional €1.5 billion to back up to €10 billion of EIB lending.
Thus jointly, the European Commission and the EIB will deliver financing of €18 billion for projects aimed to support a green, digital, and fair transition globally.
The EU and its Member States remain the world’s leading donors, providing 43% of global Official Development Assistance in 2022. The collective ODA increased, reaching €92.8 billion in 2022, up from €71.6 billion in 2021.
