EIB and the Ministry of Energy of Chile to further develop cooperation and financing actions that accelerate the energy transition in Chile.

During the EU-CELAC Summit of Heads of State and Government, the European Investment Bank (EIB) today announced the signature of its first-ever residential mortgage-based loan to finance access to energy-efficient housing units outside the EU. The €200 million loan to Banco del Estado de Chile, guaranteed by the EU, finances mortgages for approximately 2,600 new housing units with improved energy efficiency standards.

The energy performance level of the new buildings will reduce energy consumption, and increase thermal comfort in the dwellings while minimizing low- and middle-income household energy consumption and costs. Energy savings will contribute as well to the reduction of local air pollution due to decreased biomass usage and lower greenhouse gas emissions linked to the use of fossil fuels.

The operation qualifies as a 100% Climate Action project, and it is the first EIB residential mortgage-based lending to finance access to energy-efficient housing units outside the EU.

”Just a month after we launched it, the Team Europe Renewable Hydrogen Fund for Chile is coming to life, with this important EIB contribution backed by Global Gateway. It will support the development of this strategic industry in Chile, creating good jobs and local value added. And it will boost Chile's export capacity towards its partners, like the EU. So this is really a win-win”, says Ursula von der Leyen, President of the European Commission.

In addition, at the EU-CELAC Summit, the EIB confirmed support for Chile's growing renewable hydrogen industry and announced the approval of a € 100m loan under the Team Europe Renewable Hydrogen Funding Platform for Chile. The platform will support the decarbonization of Chile's economy, creating green jobs and generating business opportunities for Chilean and European companies while also helping Europe meet its import demand for renewable hydrogen. The Team Europe Renewable Hydrogen Funding Platform for Chile is part of the European Union - Latin America and the Caribbean Global Gateway Investment Agenda that highlights priority investment projects to help address infrastructure needs in Latin America and the Caribbean, while creating local added value and promoting growth, decent jobs and social cohesion.

Under the platform, the EIB can provide financing to the Republic of Chile, with Corporación de Fomento de la Producción (CORFO) as the implementing agency to channel the funds to renewable hydrogen initiatives. The Team Europe Renewable Hydrogen Funding Platform for Chile supports Chile's ambition to make its main sources of energy generation renewable and clean, with 100% clean energy before 2050.

In the context of the EU-CELAC Summit, Werner Hoyer, President of the EIB, and Diego Pardow, Minister of Energy of the Republic of Chile, signed a declaration of intent to further develop cooperation and financing actions for the development and sustainable deployment of green hydrogen and derivatives, renewable energies such as geothermal, solar and wind, among others, storage technologies, energy efficiency and electromobility, supporting a decarbonization process that accelerates the energy transition in Chile.

“I am proud to see the cooperation between the European Union and Chile growing through investments in climate and new green technology. These initiatives demonstrate how Team Europe and Global Gateway can bring value to partners like Chile in their ambitious climate action agenda. At the EIB, we are determined to achieve global climate goals while creating new growth and employment opportunities,” said Werner Hoyer, EIB President.

Gabriel Boric, President of the Republic of Chile, said that Chile and the European Union have a solid and long-standing relationship of cooperation in the energy sector.

”We share the same vision on the urgency of climate action and are committed to meeting the Paris Agreement by achieving carbon neutrality by 2050. These initiatives will contribute to rise the ambition for a cleaner, more sustainable, and just society”, he added.

The three projects are part of the European Union's Global Gateway initiative supporting projects that improve global and regional connectivity in the digital, climate, transport, health, energy, and education sectors. The Global Gateway is the European Union's contribution to narrowing the global investment gap worldwide. Between 2021 and 2027, the European Union expects to mobilize up to €300 billion of investments for sustainable and high-quality projects, taking into account the needs of partner countries and ensuring lasting benefits for local communities.

The EIB is the largest multilateral public bank in the world. In 2022 it financed around €10.8 billion in investments outside of the European Union via EIB Global, the arm of the EIB created that same year for activities beyond Europe. Since the EIB started working in Chile in 1994, it has provided over €776 million to finance investments on favorable conditions — in terms of both maturity and interest rates — with the aim of improving Chileans' quality of life.