EU, EIB channel EUR 18 bn in climate funding for Global Gateway partner countries including North Africa

Fresh climate funding from Europe: The European Commission and the European Investment Bank (EIB) will funnel EUR 18 bn in funding under Europe’s investment strategy for partner countries Global Gateway to help bridge global climate financing gaps and support adaptation and mitigation efforts, according to a joint statement released on Thursday. The new financing package aims to boost investments in the strategy’s priority areas, including climate action and clean energy in partner countries globally.

What they said: “This EUR 18 bn in financing will get even more such projects off the ground, swiftly. Global Gateway will help advance the climate transition around the world, improving people's lives and making our partners more resilient,” European Commission President Ursula von der Leyen said. EIB Global, the arm of the EIB that works beyond the EU, has already mobilized investments amounting to EUR 31 bn under Global Gateway, EIB President Werner Hoyer said.

A much needed bridge for MENA’s climate finance gap? The MENA region continues to suffer from a large climate finance gap, with finance flows remaining feeble. Finance flows into the region are currently estimated at between USD 5.1-7.4 bn annually, according to UNFCCC figures. The figure is lower than the minimum USD 436-487 bn needed by the region to address and cope with climate change until 2030. One of Global Gateway’s highlighted projects is the Africa - EU Green Energy Initiative, which works on expanding the share of renewable energy sources in Africa’s energy production, including North African countries.

About Global Gateway: Launched by the European Commission and the EU High Representative, Global Gateway is a European initiative that aims to “boost smart, clean and secure links in digital, energy and transport sectors and to strengthen health, education and research systems across the world,” according to the European Commission's website. It aims to mobilize EUR 300 bn in investments between 2021 and 2027 with a mix of grants, concessional loans, and guarantees to eliminate risks for private sector investments.