Cities Need to Boost Green Investment for Safety, EIB Chief Says

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(Bloomberg) — Cities are increasing investment in the green transition to protect against the potentially catastrophic effects of climate change, the European Investment Bank president said.

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“Beyond all these high level political debates, the reality on the ground is that companies are investing in this green transition, and mayors are very well aware of the need to invest for the future and to protect their citizens — it’s about safety and security at the end of the day,” Nadia Calviño said at the 12th Bloomberg CityLab, a global cities summit held this week in Madrid.

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Cities occupy less than 3% of the world’s surface, but about 70% of the population is expected to live in them by 2050, according to World Bank data. The growing effects of climate change, including extreme temperatures and rainfall, are increasing their vulnerability and making adaptation and mitigation an urgent task for local officials. This year, 16 people died in Portugal due to floods that also affected Spain and France.

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“We’re proud to say we are the climate bank and 60% of our finance is going to the green transition, whether it is transport, water infrastructures, deployment of renewable energy grids,” Calviño said, citing projects financed by the institution such as tunnels in Lisbon to protect the city from floods.

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The EIB’s goals include deepening European integration and financing key urban projects. The institution describes itself as an instrument of the capital markets union and has a €600 billion ($702 billion) balance sheet, the highest possible credit rating and €100 billion in annual business last year. About 25% is allocated to cities.

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“In these days when we are surrounded by volatility, uncertainty and conflict, city mayors are really focused on delivering for their citizens” in areas such as clean water, education, housing, collection of garbage and recycling, Calviño said. “They’re really superheroes.” 

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Before becoming EIB president in 2024, Calviño served as Spain’s deputy prime minister and economy minister. A former European Commission official, she has led the institution as it aligns with new European Union priorities including defense, energy and, more recently, housing.

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