Bank on Nature: first loan signed in Brussels
The European Commission and the European Investment Bank (EIB) have announced the first loan agreement backed by the Natural Capital Financing Facility.
The € 6 million loan agreement with Rewilding Europe Capital is expected to provide support for over 30 nature-focused businesses across Europe. Rewilding Europe Capital is Europe's first conservation and rewilding enterprise financing facility.
With this first project an ambitious new initiative to protect biodiversity and support climate adaptation in Europe has become reality. The Bank on Nature Initiative builds on the Natural Capital Financing Facility (NCFF), an established financing partnership between the European Commission and the European Investment Bank supporting nature and climate adaptation projects through tailored loans and investments, backed by an EU guarantee. It recognises and fosters the business case for investing in natural capital for biodiversity and climate change adaptation purposes.
Ilko Bosman, Executive Director of Rewilding Europe Capital said, "The contract with the EIB that we've signed today is a great step forward for Rewilding Europe Capital. Not only will it allow us to really accelerate our facility, but above all by attracting external finance we can increase our ability to showcase how commercial finance can contribute to nature conservation and rewilding. With the proposed EIB/EU loan, all EU 28 countries will be considered and larger loan sizes will be permitted, including new nature-related business models in sectors like forestry, water management and tourism.”
A key element of the project is to build a ‘business case for the wild'. The rewilding areas, which could be supported by the agreement signed today, comprise 38 different sites in the Natura 2000 network. These rewilding areas are: Western Iberia (Portugal), Velebit Mountains (Croatia), Central Apennines (Italy), Southern Carpathians (Romania), Danube Delta (Romania), Rhodope Mountains (Bulgaria), Oder Delta (Germany/Poland) and Lapland (Sweden). The comeback of iconic and threatened European wildlife species such as the European bison, brown bear, black vultures as well as pelicans and white-tailed eagles of the Danube and Oder Delta, to name a few, could also benefit from the investments.
As well as supporting the creation and consolidation of nature-based businesses, new nature-related business models will be supported in sectors like forestry, water management, sustainable fisheries and tourism. Today's agreement is expected to create 250 jobs.
The Natural Capital Financing Facility (NCFF) is a financial instrument that combines EIB financing and European Commission funding under the LIFE Programme, the EU's funding instrument for the environment and climate action. A budget of €100 – 125 million is available for the period up to 2019. The European Commission provides up to €50 million as a guarantee for the investments with an additional grant support facility of €10 million for technical assistance. Recipients for NCFF could include public and private entities, including public authorities, land owners and businesses.