NNA - Amidst Lebanon's ongoing economic and banking crisis, Ambroise Fayolle, Vice President of the European Investment Bank (EIB), reiterated the institution's substantial role as a financing partner for Lebanon since 1978.
Speaking to the National News Agency on the sidelines of COP28 in Dubai, Fayolle addressed critical inquiries about the impact of Lebanon's unprecedented economic meltdown on EIB's investments in the country.
Expressing concern over Lebanon's economic and political turmoil, Fayolle clarified that no new EIB financing for Lebanese investments had been approved since October 2019. He emphasized the necessity of pausing lending activities until essential political and economic reforms aligned with European Union directives are implemented.
However, despite the freeze on new financing, Fayolle stressed the EIB's unwavering commitment to Lebanon.
“The bank continues to offer support through advisory cooperation, aiding microfinance institutions, and enabling access to microfinance for vulnerable communities. Moreover, the EIB has extended its assistance to Lebanese companies, especially in the digital and consumer sectors, through regional investment funds,” Fayolle explained.
The EIB Vice President went on to underscore the EU Bank’s vigilance in monitoring Lebanon's political and economic situation in collaboration with the European Commission, IMF, and other international stakeholders. “Our Bank stands ready to resume financing operations once credible progress in structural reforms is achieved,” Fayolle affirmed.
Highlighting the EIB's past and potential contributions to Lebanon's climate resilience and sustainability projects, Fayolle emphasized investments in wastewater treatment, sustainable transport, and support for small companies to stimulate job creation and improve the business landscape.
“The EIB intends to further focus on digital transition, energy efficiency, renewable energy, and human development based on local needs and developments,” Fayolle added.
Simultaneously, at COP28, the EIB introduced a novel approach called "just resilience" and "just transition," expanding globally to support vulnerable communities coping with climate change impacts. This initiative emphasizes fair adaptation strategies and a socially responsible shift to a sustainable economy.
In a separate event at COP28, European Commission Executive Vice-President, Maroš Šefčovič, Founder of Breakthrough Energy Bill Gates, and European Investment Bank President, Werner Hoyer, announced the first two European projects to be supported by the EU–Catalyst partnership, which aid groundbreaking clean tech projects aiming to assist the EU in achieving its 2030 climate targets. These projects received a combined €240 million to revolutionize clean tech and accelerate the transition to a greener economy.
Additionally at COP28, the “Blue Mediterranean Partnership”, a new multi-donor fund managed by the European Bank for Reconstruction and Development (EBRD), has reaffirmed its commitment to fostering a sustainable blue economy in the Mediterranean and Red Sea regions. Signatories formalized their participation, aiming for an early 2024 launch to coordinate financing for blue economy projects, focusing initially on Egypt, Jordan, and Morocco.
The partnership, supported by various financial institutions and led by beneficiary countries, aims to promote sustainable practices, reduce plastic waste, and enhance marine biodiversity, marking a concerted effort to protect the Mediterranean's ecosystem and drive sustainable economic growth in the region.
The European Investment Bank (EIB), AFD, Kreditanstalt für Wiederaufbau (KfW), Cassa Depositi e Prestiti (CDP) and the EBRD – will act as implementing financial institutions and cooperate to co-finance blue economy projects.
==============Rana El-Hage
