The European Investment Bank board has approved an updated definition of dual-use goods and infrastructure eligible for funding and has agreed to facilitate financing for defence SMEs by intermediating the transaction. Eligible projects under SESI will include military mobility, space, cybersecurity, green security, critical infrastructure, border protection, and other dual-use investments such as drones.

The Board also approved €4.5 billion in new financing for projects, including in the strategic priority areas of climate action, technological innovation and agriculture. Going forward, the EIB will waive a previous requirement that dual-use projects eligible for financing in the area of security and defence derive more than 50% of their expected revenues from civilian use. 

There will no longer be a minimum threshold for expected revenues from civilian applications or share of civilian users. The changes are expected to speed up investment and improve access to EIB Group financing for the European security and defence sector, deploying €6 billion in funding available under the Strategic European Security Initiative (SESI), and the European Investment Fund’s (EIF) Defence Equity Facility.

Alongside the support for defence was an announcement of €4.5 billion for renewable energy, agriculture, sustainable transport and business.

“We are stepping up our support for Europe’s security and defence industry, strengthening investment to keep Europe and its citizens safe, while safeguarding the EIB Group’s financing capacity,” EIB President Nadia Calviño said.

Image: Quantum Systems