The European Investment Bank (EIB) and Paris-based financial services group Societe Generale announced the launch of a new clean energy financing initiative, aimed at unlocking as €8 billion in investments to support manufacturers across the wind energy supply chain in Europe.

The initiative includes a €500 million EIB counter-guarantee that Societe Generale will use to create a portfolio of bank guarantees of up to €1 billion to back new wind farm projects across the European Union, as well as their supply chain and power grid connections, with a leverage effect anticipated to mobilize additional funding from other investors to support increased production and accelerate wind energy development.

EIB Vice-President Ambroise Fayolle said:

“Wind energy plays a pivotal role in achieving Europe’s energy independence. However, producers are currently navigating significant challenges, including elevated costs, fluctuating demand, lengthy permitting processes, supply chain disruptions, and intense global competition. This agreement underscores the effectiveness of the EIB’s risk-sharing instruments in addressing these obstacles, enabling the funding of essential projects that drive the green transition, support the decarbonization of the European economy, and strengthen industrial competitiveness.”

The initiative is backed by InvestEU, the EU program aiming to mobilize investment of more than €372 billion by 2027 to boost investment, innovation and job creation in Europe. The deal forms part of the EIB’s €5 billion wind power package, an investment plan announced by the EIB at COP28 in 2023 to support the production of 32 GW of the 117 GW of wind capacity needed to enable the European Union to meet its goal of generating at least 45% of its energy from renewable sources by 2030.

Anne-Christine Champion, Co-Head of Global Banking & Investor Solutions at Societe Generale, said:

“The breadth and speed of investment needed to adapt our economies have never been seen before. While the wind-power sector has been a European success story to date, challenges remain within the supply chain. Societe Generale is investing in the future with the development of innovative solutions and partnerships, and this agreement with the EIB shows how public and private stakeholders can collaborate to support a positive and sustainable energy transition.”