EIB launches new programme to support strategic technologies

5 months ago 13

The European Investment Bank (EIB) launched a new programme to “actively participate in the European Commission’s industrial alliances and initiatives” on net zero and strategic technologies, in its 2024-2027 strategic roadmap, published on Friday (21 June).

Innovation in artificial intelligence (AI), chips, cleantech, and biotechnology are some of the top priorities of EU leaders, as the bloc struggles to maintain its competitiveness and resilience on the global stage.

Investment in critical raw materials, such as lithium and copper, necessary for achieving the green and digital transitions, will also take center stage in the “Strategic Tech-EU programme.”

Support for startups and small and medium enterprises should remain at €20 billion per year, with a mixture of risk profiles.

“Well above 50% of investments will be in the green transition and more than 45% will go to cohesion policy,” the agenda says.

The EIB will also expand its European Tech Champions Initiative (ETCI) to “attract private capital to finance the scaling up of innovative start ups,” following a mandate from the Eurogroup, the bank said in a statement.

Launched in 2023 and managed by the European Investment Fund, it aims to solve a crucial problem in EU’s tech sector; scaling startups to compete with US and Chinese rivals. European startups have fairly sufficient access to funding in their early development, but have a hard time finding the cash needed to truly scale up.

The ETCI distributes money to large venture capital funds, which then allocates them as growth financing to startups looking to scale up.

The initial amount allocated to the ETCI was €3.75 billion.

[Edited by Rajnish Singh]