The European Investment Bank is set to increase its reach to include military investment opportunities, which many fear will be at the expense of the environment.
Since US Vice President J.D. Vance delivered an unprecedented speech to a packed house at last month’s Munich defence summit – essentially calling time on Washington’s role as ‘global peacekeeper’ and a guarantor of European security – leaders across the continent have been scrambling to draw up new plans to safeguard the region without relying on American money, troops and funds.
Since the event, panic has gripped many corridors of power, particularly in the eastern EU and Baltic states, who believe this exposes them to potential aggression from an expansionist Russia.
So far, a number of countries have pledged to increase defence spending in a bid to plug the shortfall left by a more arms-length US doctrine, including the UK. This has proven a boon for domestic and European contractors now securing new contracts which would historically have been left to American firms and the White House.
However, scale of the challenge to play catch up after decades of low funding has now led the European Investment Bank [EIB] to confirm it is interested in working more closely with national development banks on defence.
The move has raised alarm that this could be at the expense of investment into climate mitigation efforts. So far, those working closely to the EIB have suggested that there would be no chance to the current policy of not financing weapons and ammunition development, with project such as development and expansion of a military camp for a German brigade in Lithuania, close to the Belarusian border, among those currently being considered by the institution.
Due to environment, social and governance policies, only military equipment with a dual use – i.e. anything that can also have a civilian application – is eligible for EIB investment. The institution’s focus on net zero and other green initiatives has led to it being dubbed the ‘climate bank’.
Image: Marek Studzinski
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