The European Investment Bank (EIB) and Commerzbank have launched a new partnership to support €1.2 billion in energy investment across Germany, aiming to accelerate the country’s energy transition and modernise local energy infrastructure. The cooperation, formalised at Commerzbank’s headquarters in Frankfurt, combines the EIB’s financial strength with Commerzbank’s local expertise to fund hundreds of municipal energy projects, lowering energy costs for households and businesses while supporting Germany’s green transition.
Germany’s municipal energy providers, known as Stadtwerke, face a significant financing gap in upgrading electricity and district heating networks crucial for the Energiewende. Government subsidies and internal funding cover only a fraction of the required investment, making new financing instruments essential. By bridging this gap, the partnership addresses a critical barrier to achieving national and EU climate objectives.
The €1.2 billion programme is the first under the pan-European Growth for Energy (G4E) initiative, targeting smaller municipal energy schemes with investments under €80 million. The EIB will cover up to 50% of Commerzbank’s risk exposure for eligible loans, allowing the bank to allocate less capital to each project and expand its lending capacity. This risk-sharing approach enables faster and broader financing for projects in electricity generation, district heating, and grid expansion, helping modernise infrastructure, reduce energy costs, and achieve climate goals.
Strategically, the G4E initiative focuses on local and regional investments, empowering municipal utilities to deliver renewable electricity, grid reinforcement, and modern district heating systems. The partnership is designed to serve as a benchmark for similar collaborations across the EU in the coming years. Over the past five years, the EIB has invested more than €5.5 billion in German energy projects, demonstrating its ongoing commitment to supporting Europe’s energy transition.
The EIB, the long-term lending arm of the European Union, finances projects that align with EU policy objectives, including climate action, digitalisation, cohesion, and social infrastructure. In 2024, the EIB Group signed nearly €89 billion in financing for over 900 projects and mobilised significant capital for energy security and growth, with almost 60% of its annual financing directly contributing to climate change mitigation, adaptation, and environmental sustainability.
