EIB Approves €1 Billion Loan for Reconstruction and Climate Resilience in Italy's Ischia Region

Funding to support rebuilding efforts after 2017 earthquake and 2022 landslide, prioritizing energy efficiency, climate adaptation, and hydrogeological stability.

The European Investment Bank (EIB) has greenlit a €1 billion loan to rebuild public and private infrastructure in Italy’s Ischia region, following severe damage caused by the 2017 earthquake and the 2022 landslide. The first tranche of €150 million, aimed at ongoing reconstruction efforts, was signed at the Ministry for the Economy and Finance, solidifying the partnership between the EIB and Italy.

The EIB loan will be directed to Italy’s Ministry for the Economy and Finance, aiding the operations of the Commissioner’s Office responsible for overseeing the reconstruction. Key areas of focus include:

Renovation of private and public buildings, including schools and water infrastructure.

Restoration of road networks and hydraulic systems to prevent future disasters.

Implementation of cutting-edge energy efficiency measures for all renovated structures.

Measures to combat hydrogeological instability, such as slope stabilization, enhancing riverbed conductivity, and constructing new mitigation systems.

The EIB’s financing ensures significant cost savings for the Italian government over the loan’s 25-year term by leveraging favorable international interest rates.

Strengthening Resilience and Climate Adaptation

This initiative extends beyond rebuilding by integrating climate change adaptation and environmental sustainability into project designs. A free technical assistance agreement signed in 2022 between the EIB and the Commissioner’s Office identified priority areas for intervention and continues to guide the implementation of reconstruction efforts.

EIB Vice-President Gelsomina Vigliotti highlighted the initiative’s importance:“This agreement underscores the EIB’s role as a key financial and technical partner for Italy in addressing natural disasters and climate change. The technical assistance provided has been instrumental in designing projects that enhance Ischia’s resilience to extreme climate events, securing a safer and more sustainable future for its residents.”

A Broader Partnership with Italy

The EIB has a history of supporting strategic projects in Italy, including:

• €4.75 billion allocated to rebuild regions impacted by earthquakes in 2016 and 2017.
• Financing high-speed rail development across the country through Rete Ferroviaria Italiana S.p.A.

The Ischia project builds on this collaboration, contributing to both the island's recovery and broader climate goals.

Remarks from Officials

Commissioner Giovanni Legnini praised the EIB’s financial and advisory support:“This collaboration marks a decisive milestone in Ischia’s reconstruction, integrating environmental and climate adaptation principles into our projects for the first time. It serves as a model for sustainable recovery.”

Minister for the Economy and Finance Giancarlo Giorgetti echoed this sentiment, emphasizing the partnership's role in fostering sustainability and resilience.

Vision for Ischia’s Future

The EIB funding not only aims to restore Ischia’s infrastructure but also strengthens its ability to withstand future natural disasters. By prioritizing energy efficiency and sustainability, the project aligns with Italy’s and the EU’s climate goals, making Ischia a resilient and environmentally sustainable model for post-disaster recovery.

This initiative reaffirms the EIB’s commitment to tackling climate change and supporting disaster-affected communities through innovative financing and strategic partnerships.