EIB Grants €207 Million Loan To Zagreb For Renewable Energy And Sustainable Infrastructure Upgrades

The European Investment Bank (EIB) has extended a €207 million loan to the City of Zagreb, Croatia, to support infrastructure upgrades essential for the capital’s sustainable development. This financing represents the first installation of a larger €395 million EIB framework loan aimed at helping Zagreb’s development over the next five years.

The EIB loan will fund various projects in Zagreb, including the expansion of renewable energy and energy efficiency initiatives, the construction of affordable social housing, and the enhancement of schools and kindergartens. Additionally, the funding will improve the public transport network, including upgrades to the iconic Zagreb funicular, and further digitalize city services. The loan will also support small-scale municipal infrastructure projects such as street improvements, sewage and water network enhancements, and the regeneration of brownfield areas for new investments.

The EIB will also offer advisory services to Zagreb to assist in preparing investment projects critical for improving the quality of life and business environment in the city. EIB Vice-President Tereza Czerwinska expressed pride in contributing to Zagreb’s green and sustainable development, emphasizing the bank’s role in addressing issues like affordable housing, climate neutrality, and urban mobility.

Zagreb Mayor Tomislav Tomašević highlighted that this investment marks the first time the EIB is funding the city’s projects, acknowledging the city’s responsible financial management. He noted that the loan will be used exclusively for capital investments, primarily to co-finance EU projects in green energy transition and digitalization, making Zagreb more resilient to climate change.

The EIB’s financial and advisory support aligns with its strategic commitment to accelerate regional cohesion within the European Union, climate action, and the development of digital, green, and affordable cities. The agreement will help Zagreb mobilize and absorb EU funds, enhancing its attractiveness to investors and paving the way for faster job creation and the city’s commitment to becoming climate neutral by 2030.

This credit is the second direct EIB loan to a local government in Croatia, following a €49 million loan agreement with the City of Split in December 2023 for urban infrastructure investments.

The EIB Group, which includes the European Investment Fund (EIF), signed €88 billion in new financing for over 900 projects in 2023, is expected to mobilise around €320 billion in investment, supporting 400,000 companies and 5.4 million jobs. The EIB’s projects are aligned with the Paris Climate Accord and do not fund fossil-fuel investments. The bank is committed to supporting €1 trillion in climate and environmental sustainability investment by 2030, with over half of its annual financing directed towards climate change mitigation, adaptation, and environmental health.

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