EIB Strengthens Wind Energy Sector with €500M Counter-Guarantee to Germany’s Commerzbank

New Partnership to Mobilize €8 Billion in Private Investments, Support Supply Chain, and Accelerate EU’s Energy Transition.

The European Investment Bank (EIB) has reinforced its commitment to Europe’s wind-energy sector by approving a €500 million counter-guarantee for Commerzbank AG. This initiative will enable Commerzbank to create a €1 billion portfolio of banking guarantees aimed at supporting investments in wind farms across the European Union.

This partnership is part of the EIB’s €5 billion initiative under the EU Wind Power Package, introduced by the European Commission in October 2023. The package aims to secure the competitiveness and sustainability of the EU’s wind-energy supply chain while advancing the region’s green energy transition.

Boosting Wind Energy Investments

EIB Vice-President Nicola Beer emphasized the initiative’s importance for both the environment and the economy. “On our path to net zero, we need to strengthen European key industries to accelerate decarbonization through innovation and know-how. With this project, we safeguard jobs in a sustainable industry and enhance the competitiveness of this critical sector,” she said.

The counter-guarantees will mitigate credit risks for commercial banks, enabling them to offer advance payment and performance guarantee lines to wind-energy manufacturers. This facilitates manufacturers’ ability to prepay suppliers for turbines, grid connections, cables, and transformer stations, crucial components of wind farm infrastructure.

Projected Economic Impact

The combined EIB-Commerzbank €1 billion guarantee facility is projected to unlock up to €8 billion in private investments, driving significant growth in the wind-energy sector. This financing will address challenges like supply-chain bottlenecks, slow permitting processes, and rising costs due to inflation and commodity prices.

Tim Koenemann, Global Head of Green Infrastructure Finance at Commerzbank, highlighted the value of public-private partnerships in achieving Europe’s green goals. “Our accord with the EIB broadens our support for wind energy clients and showcases how collaboration between public and private sectors can facilitate a timely and successful sustainable transformation in Europe,” he said.

Tackling Supply Chain Challenges

The wind-power industry, a key player in the EU’s renewable-energy strategy, faces hurdles such as uncertain demand, international competition, and regulatory delays. The EIB’s risk-sharing mechanisms aim to alleviate these issues, ensuring the timely deployment of wind-energy projects.

The €5 billion initiative is expected to play a pivotal role in achieving the EU’s renewable energy target of 45% by 2030. Specifically, it aims to support the construction of 32 GW of wind capacity, contributing significantly to the 117 GW needed to meet this goal.

Enhanced Support Through InvestEU

The project is backed by the EU’s InvestEU program, which provides essential support for initiatives that promote innovation, job creation, and sustainability. Without InvestEU, the EIB’s involvement at this scale would not have been possible.

The counter-guarantee agreement between the EIB and Commerzbank is a testament to how strategic partnerships can drive progress in renewable energy, ensuring a resilient supply chain and the financing necessary for Europe’s green energy transition.