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The Board of Directors of the European Investment Bank (EIB) approved the cohesion orientation paper that sets out the new framework for the EIB’s cohesion action for 2021-2027. The Board, composed of representatives of all EU Member States, made more funding available for public and

private sector projects in cohesion regions — those with a gross domestic product (GDP) per capita below the EU average. The decision also lays the foundation for increasing climate action and environmental lending in poorer regions, fostering innovation in cohesion regions and ensuring that EIB financing complements EU cohesion policy funds in the new seven-year EU budget. The EIB’s cohesion financing, advisory and fund management services aim to reduce regional disparities by supporting projects in the European Union’s poorer regions.

The cohesion orientation paper focuses on five new commitments: The EIB will aim to increase its financing for cohesion regions to 45% of its annual EU lending by 2025.

The EIB will dedicate 23% of its annual EU lending to less developed regions (those with a GDP per capita of less than 75% of the EU average) by 2025.

The EIB will finance mid-cap companies (companies with between 250 and 3 000 employees) in less developed regions to deploy proven technologies for the first time when these projects show clear economic or environmental benefits at the local level.

In cohesion regions, the EIB will facilitate access to finance for mid-cap companies through direct lending.

The EIB Group will conduct a mid-term review of the cohesion orientation paper in 2023.