EIB Global, the development arm of the European Investment Bank Group, has launched a new climate-focused trust fund supported initially by Germany and Luxembourg, which together are contributing €32 million. The Greening Financial Systems Fund is designed to expand green financing worldwide by supporting actions that address climate change and environmental sustainability. Germany is providing €30 million and Luxembourg €2 million, with the fund open to additional donors in the future.
The agreement establishing the fund was signed at the COP30 climate conference in Belém, Brazil, underscoring the European Union’s commitment to global climate action. The fund will finance the EIB’s Greening Financial Systems Programme, which provides advisory support to central banks, regulators, and financial institutions to help them reduce climate-related risks and strengthen the resilience of financial systems. This includes aligning financial flows with the goals of the Paris Agreement and promoting sustainable investment practices in emerging and developing economies.
EIB Vice-President Ambroise Fayolle stated that the initiative reinforces the EU’s commitment to green development and supports countries transitioning to sustainable economies. German State Secretary Jochen Flasbarth emphasized the key role of financial systems in achieving global net-zero goals, highlighting how stronger regulatory and investment frameworks can unlock significant private capital. Luxembourg’s Minister Serge Wilmes stressed the urgency of reorienting financial flows to achieve major global climate and biodiversity goals, noting that the new fund will help ensure a just transition.
The Greening Financial Systems Programme already supports 12 countries across the EU neighbourhood and sub-Saharan Africa, including work with banks in Ethiopia, Kenya, and North Macedonia. Its advisory activities help financial intermediaries implement sustainable finance measures, mobilize funding for green projects, and improve monitoring and reporting on environmental impact. These efforts also help prepare pipelines of bankable green projects that the EIB can later finance.
Originally supported by Germany through the International Climate Initiative, the programme has now evolved into a multi-donor fund capable of pooling resources to accelerate the global green transition. The initiative aligns with the EIB Group Climate Bank Roadmap and major international frameworks such as the Paris Agreement and the NDC Partnership. EIB Global is seeking additional donors to expand the fund’s reach and has prepared a replenishment proposal.
The work of EIB Global is connected to broader EIB Group climate and development strategies, which focus on fostering international partnerships, supporting sustainable investments, and strengthening development finance impact across regions.
