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Environmental News>

Six EU banks invest €10 billion to promote the circular economy

  • 2019-08-13

Six European investment banks, including the European Investment Bank (EIB), have jointly invested €10 billion to promote the circular economy within the European Union. They aim to accelerate the transition to a sustainable and circular economy through loans and investments. The Joint Initiative on Circular Economy (JICE), established by these six national investment banks, plans to invest at least €10 billion over the next five years (2019-2023) to support the development and implementation of EU circular economy projects and programs, promoting waste reduction, improving resource efficiency, and driving innovative solutions to achieve circular economy goals. The banks will leverage their financial expertise and capabilities to provide financing, equity investment, or guarantees for eligible projects through the JICE program. Targets are not limited by size and can include public sector entities, private enterprises, or research institutions. This investment targets all stages of the value chain, such as considering waste reduction or even zero waste generation at the end of the product lifecycle from the initial product design stage; extending product lifespan through maintenance and reuse during the product use stage; and aiming for material recycling or utilization for heat generation after product use. Simultaneously, this investment project will leverage information technology (ICT) and digitalization to strengthen the implementation of circular economy strategies. Dr. Werner Hoyer, President of the EIB, stated: "Combating global warming and the ecological crisis is the most pressing challenge of our time, and strengthening the circular economy is the most powerful weapon in our arsenal. It not only helps achieve the goals of the Paris Climate Agreement but will also bring enormous benefits to the economy and society. Through this joint initiative on the circular economy, our commitment to achieving a circular economy has been greatly enhanced, and collaboration with various institutions will significantly reduce the formation of garbage mountains." The other five national investment banks supporting the project include Bank Gospodarstwa Krajowego (GBK) of Poland, Gassepe Caissedes Dépôts (CDC) of France, Cassa Depositi e Prestiti (CDP) of Italy, Instituto de Crédito OFicial (ICO) of Spain, and Kreditanstaltfür Wiederaufbau (KfW) of Germany. Source: https://www.duurzaamnieuws.nl/europa-investeert-10-miljard-in-kringloopeconomie/

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