During the recent EU-CELAC Summit of Heads of State and Government, the European Investment Bank (EIB) took a significant step in supporting Chile’s clean energy transition.
The EIB announced its first-ever residential mortgage-based loan outside the EU, providing €200 million to finance energy-efficient housing units in collaboration with Banco del Estado de Chile. Simultaneously, the EIB approved a €100 million loan through the Team Europe Renewable Hydrogen Funding Platform for Chile, affirming its commitment to advancing the country’s renewable hydrogen industry. These projects are part of the European Union’s Global Gateway initiative, aimed at promoting sustainable development and climate action across the globe.
The EIB’s €200 million loan is set to support the development of around 2,600 new housing units with improved energy efficiency standards in Chile. This initiative targets low- and middle-income households, aiming to reduce energy consumption and enhance thermal comfort. The energy-efficient buildings will contribute to lower air pollution and greenhouse gas emissions by decreasing biomass usage and reliance on fossil fuels.
The landmark project is categorized as a 100% Climate Action endeavor, underscoring the EIB’s commitment to combatting climate change and promoting sustainable practices. It is the first residential mortgage-based lending venture by the EIB outside the EU, marking a significant milestone in supporting access to energy-efficient housing units in the region.
In addition to the housing project, the EIB allocated €100 million through the Team Europe Renewable Hydrogen Funding Platform for Chile. This funding platform aims to accelerate Chile’s energy transition by creating green jobs, promoting business opportunities for both Chilean and European companies, and meeting Europe’s renewable hydrogen import demands.
The Renewable Hydrogen Funding Platform is part of the European Union – Latin America and the Caribbean Global Gateway Investment Agenda. It prioritizes investment projects that address infrastructure needs while fostering local value creation, growth, and social cohesion.
The partnership between the European Union and Chile extends beyond funding initiatives. At the EU-CELAC Summit, EIB President Werner Hoyer and Chile’s Minister of Energy, Diego Pardow, signed a declaration of intent to strengthen cooperation and financing actions for various green technologies, including renewable energies, energy storage, and electromobility.
Both parties are committed to urgent climate action, aiming for carbon neutrality by 2050. The joint efforts will accelerate Chile’s energy transition and decarbonization process, fostering a cleaner, more sustainable, and equitable society.
While the funding projects represent significant progress, challenges lie ahead. Developing and implementing energy-efficient housing units and scaling up the renewable hydrogen industry will require strong collaboration, innovation, and long-term planning.
Chile’s commitment to establishing a stable plan to encourage long-term contracts and investments will be crucial for the success of its renewable hydrogen industry. The EIB’s role as a financial partner and its expertise in sustainable projects will play a vital role in overcoming these challenges.
The European Investment Bank’s funding initiatives in Chile exemplify the global commitment to sustainable development and climate action. By supporting energy-efficient housing units and the growth of the renewable hydrogen industry, the EIB contributes to a cleaner, greener, and more resilient future for Chile and the world.
As the European Union’s Global Gateway initiative mobilizes substantial investments for sustainable projects, it aims to bridge the global investment gap while creating lasting benefits for partner countries and their communities.
