Call for EIB guarantees to unlock EU competitiveness

Call for EIB guarantees to unlock EU competitiveness

Call for EIB guarantees to unlock EU competitiveness 150 150 Batteries International

July 5, 2024: EASE, the European Association for Storage of Energy, along with 38 European cleantech innovators, investors, industry associations, researchers and NGOs, has called for expanding EIB guarantees to unlock EU industrial competitiveness.

As this bulleting went to press, the EIB’s Board of Governors were approving a new strategic roadmap for 2024-2027, which supports the EU in ‘building leadership and competitiveness in strategic cleantech sectors’.

A leaked version of this roadmap shows that guarantees are one of the EIB instruments that can efficiently address the financing gap of cleantech start-ups and SMEs by crowding-in private investments.

Several such sectors are under pressure due to the large-scale investments being made by other global players like China and the US.

European cleantech manufacturers are being forced to turn down orders for lack of bank guarantees, which greatly limits the growth of these clean industries in Europe. Without a targeted solution, European manufacturers and supply chains will suffer competitively, with non-European competitors seizing the market share and undermining Europe’s industrial base.

In response to this, the group of 39 concerned parties have jointly called on the EIB to support the expansion of its public guarantee, seeing it as essential in securing Europe’s energy transition and resilience. This tool can scale-up Europe’s cleantech manufacturing significantly and reinforce the global competitiveness of EU green industry.

In their joint letter, the signatories make five detailed asks that outline how the EIB can help grow strategic cleantech sectors, particularly batteries and long-duration energy storage systems including seasonal storage; electrolysers including stacks; solar photovoltaics including inverters; industrial heat pumps; and innovative renewables (including geothermal and ocean energy).

By deploying a manufacturing guarantee — something that had previously been  done effectively for the wind industry and electricity grids — the EIB would be delivering its climate bank mandate which it describes as a number one priority in its new roadmap.