The European Investment Bank (EIB) has approved a €5 billion (~$5.5 billion) initiative to support the wind energy equipment manufacturing companies in Europe  to boost home-grown industrial innovation.

The amount under the initiative will specifically help strengthen the commercial bank guarantees for companies investing across the wind sector. It is expected to help raise nearly €80 billion ($87 billion) of new wind energy investments and add up to 32 GW of new wind energy capacity in the region.

The program will support investments by companies manufacturing wind energy and grid-connection related equipment and key components.

Easing access to finance for the wind sector in the region is also a crucial element of the European Wind Power Action Plan, announced by the European Commission in October.

To improve financial access for new wind energy investment, EIB had also previously committed to an additional €45 billion ($49 billion) in financial support under the REPowerEU plan, which is expected to accelerate the decarbonization of the European economy and support state-of-the-art manufacturing in strategic net-zero technologies.

The coordinated support by the EIB and European Commission for the wind energy sector aligns with the European Green Deal announced earlier this year.

“(The) Board decisions highlight the EU bank’s commitment to deploying the full range of its resources in support of the clean energy revolution. Climate depends on it, and so do Europe’s competitiveness, innovation, and energy security. There is no trade-off between these goals. On the contrary, we cannot achieve any one of them without pursuing them all”, said Werner Hoyer, President of the EIB.

The Board also approved new energy financing for large-scale offshore wind generation in the North Sea and said it would support two large-scale solar power projects and the development of small-scale renewable energy projects in Spain.

EIB has also backed the first commercial solar power plant in Kosovo, a new solar power program in Brazil, and the first cross-border electricity interconnection between Tunisia and Italy. This is essential to increase the exchange of renewable energy across the Mediterranean, as well as to support the renovation and expansion of district heating in France.

The bank also approved financing for electric vehicle charging infrastructure across Italy and electric vehicle leasing in Romania.

In July this year, the EIB Group raised the funding volume for clean energy projects developed under the EU’s REPower EU plan and Green Deal Industrial Plan by 50% of €45 billion (~$50.28 billion).

In February 2023, the bank also provided $1.1 billion to develop large-scale green hydrogen hubs and projects in India.