AUTHORS: Melanie Muro, David Baldock (IEEP), Simone Højte, Hanne Frølich Riis (Concito)
The EU agriculture and food sector is under growing pressure to transition toward sustainability and resilience. Yet, financing this transition remains a major challenge. This briefing, produced in collaboration with Concito, examines the European Investment Bank’s (EIB) prospective role in supporting the transition to a sustainable and resilient agri-food sector in the EU.
As the EU agriculture and food sector faces mounting environmental pressures and increasing climate risks, the transition to sustainability is no longer optional, it is urgent. Yet, public funding alone cannot deliver the scale of change within the timeframe required. The European Investment Bank (EIB) is well-positioned to support this shift, particularly by de-risking private capital and mobilising long-term investment, but agriculture has historically received only a small share of its green financing.
Since the leadership change in January 2024 and the introduction of eight new core priorities, including agriculture and bioeconomy, the EIB has begun to reorient its strategic direction. The Bank’s €3 billion facility for agriculture, forestry, and aquaculture, launched at the end of 2024, marks a significant shift, with targeted support for young farmers, soil and water investments, and gender equality. However, gaps remain in transparency, sectoral targeting, and access for smaller farms and cooperatives.
This briefing assesses the EIB’s current instruments, recent developments, and future opportunities under the proposed Multiannual Financial Framework (MFF) for 2028–2034.
The key findings in short:
- Financing gaps persist: A €62 billion financing gap across EU agriculture, especially for small farms and green investments, underscores the need for targeted financial tools.
- Agriculture receives limited EIB investment: Despite increased investment in the sector in recent years, they still only make up a minor share of total EIB spending.
- Transparency and targeting must improve: Disaggregated reporting and clearer eligibility criteria are needed to ensure funds reach transition-aligned actors.
- Enabling conditions matter: Stable sustainability targets, compliance-based policy frameworks, and accessible advisory services are essential to unlock investment and scale impact.
Recommended actions for the EIB:
- Target intermediary loans to farmers, cooperatives, and agri-food SMEs investing in sustainable practices.
- Expand the financial toolbox with equity, venture capital, guarantees, and blended finance tailored to transition-aligned investments.
- Improve transparency through disaggregated reporting by farm size, sector, and investment type.
- Strengthen intermediary banks’ capacity with technical assistance and green lending expertise.
- Support scale-up of low-carbon innovation, including plant-based food products and new protein sources.
- Align financing with long-term EU policy frameworks, such as the CAP and Carbon Removal Certification Framework
Photo by Yulian Alexeyev on Unsplash
