The European Investment Bank (EIB) has approved a €90 million loan to the Extremadura regional government to support projects that enhance competitiveness and sustainability in the region’s agricultural sector. The financing falls under the European Agricultural Fund for Rural Development’s 2023–2027 programme, which aims to strengthen a resilient and diversified agricultural economy across the European Union. The agreement underscores shared priorities of climate action, environmental sustainability, agricultural development and strengthening regional cohesion.
Through this partnership, Extremadura will invest in improving rural infrastructure, enhancing disaster prevention and recovery measures, and ensuring the protection and sustainable management of natural resources. Funding will also support the adoption of energy-efficient machinery, improved soil and water conservation, climate change mitigation and adaptation efforts, and the protection of forest ecosystems. Knowledge exchange initiatives will promote best practices across the agricultural sector, contributing to long-term resilience.
The deal reinforces the EIB Group’s commitment to economic, social and territorial cohesion, with Extremadura recognised as a cohesion region by the European Union. It also builds on previous collaborations between the EIB and the regional government, including a €225 million agreement in 2023 under the European Regional Development Fund and the European Social Fund Plus.
As the EU’s long-term lending arm, the EIB finances projects aligned with key policy objectives such as climate action, digital innovation, security, cohesion, and the bioeconomy. In 2024, the EIB Group provided nearly €89 billion in financing for over 900 high-impact projects across Europe, with around half directed to cohesion regions and nearly 60% to climate and environmental priorities. In Spain alone, €12.3 billion was invested in more than 100 projects supporting green and digital transitions and national economic growth.
