The EU External Investment Plan (EIP) is set to mobilise sustainable investment for Africa and the EU neighbourhood countries.
Climate Action and Energy Commissioner Miguel Arias Cañete has announced climate-relevant investments in three targeted areas at the One Planet Summit in Paris, France.
The three targeted areas (sustainable cities, sustainable energy and connectivity, and sustainable agriculture, rural entrepreneurs and agribusiness) are expected to generate up to €9bn in investments by 2020.
Cañete said: “The historic Paris Agreement has added wind to the sails of already accelerating climate-smart investments. These kinds of investments are of critical importance if we are to move from aspirations to action.
“The EU’s External Investment Plan, with its focus on sustainable development and the low-emission and climate-resilient transition, will scale up much-needed investments across Africa and the EU Neighbourhood region.
“The benefits will be multiple: new jobs, accelerated and sustainable growth, enhanced resilience to climate change impacts, improved health, poverty reduction and better connectivity.”
The EIP includes a new European Fund for Sustainable Development (EFSD) to support investments by public financial institutions and the private sector, by lowering the investment risks, and by leveraging additional funding, notably from private sources, in a range of investment areas.
The EU and its member states are the world’s biggest provider of climate finance, giving developing countries a total of €20.2bn last year.
The EU is also collectively the world’s top provider of development assistance, giving €75.5bn last year, almost 60% of the global total.