The European Investment Bank (EIB) and UniCredit Bank Austria will support investments in small and medium-sized renewable energy and energy efficiency projects in Austria. The EIB will make a framework loan of up to €92 million ($94.4 million) available to the Austrian bank, which will then create a credit portfolio of up to €200 million for financing clean energy projects.
The demand for renewable energy and energy efficiency projects is high: the Austrian government aims to generate 100% of electricity from wind, solar and hydropower by 2030. Decentralized photovoltaic systems are expected to play a significant role, including a 100,000 solar roofs program. Hydropower, along with pumped storage and wind farms, are also part of the government’s program.
These ambitious government goals have created a high demand for new, climate-friendly energy projects in Austria. This has caused a certain lack of competitively priced long-term financing sources being available for smaller and medium-sized renewable energy and energy efficiency projects.
The EIB aims to fill this market gap together with partner banks and other financial intermediaries. To this end, last year the EU bank provided a climate action program loan to Austria. The framework loan for UniCredit Bank Austria announced today is the first sub-operation within this EIB program.
UniCredit Bank Austria has a solid record in financing for renewable energy and energy efficiency in Western Europe with a sizable pipeline of initiatives in Austria.
EIB vice-president Thomas Östros said: “We are very pleased to cooperate with UniCredit Bank Austria to get renewable energy and energy efficiency projects up and running. Austria already benefits from one of Europe’s most developed and efficient green energy markets with a strong record of successful climate action investments as well as an important pipeline of new projects expected in the coming years. The EIB will remain a strong and reliable partner in developing these sectors in Austria and supporting Europe’s transition to a fossil-free future.”
Dieter Hengl, member of the management board of UniCredit Bank Austria responsible for corporates, said: “Climate protection and sustainability have long been major strategic topics for our bank. The financial sector as a whole has a central role to play in the transition to a low-carbon economy. Channeling money flows into sustainable, climate-friendly industries, activities and initiatives is the key joint challenge of the future. I am very pleased that we are the first bank in Austria to have signed the climate action facility loan with the EIB. Together with the EIB, we are helping companies to become sustainable and climate-friendly and can thus enable our customers to invest in these important issues at particularly advantageous conditions.”
