EIB & BNP Paribas Invest US$234m in to Europe's Agriculture

To date, agriculture accounts for 11% of all GHG emissions in the EU, according to the European Environment Agency.

The European Investment Bank (EIB) has signed a €200m (US$234m) financing agreement with BNP Paribas Leasing Solutions (BPLS).

The investment is set to support SMEs and mid-cap companies that operate in the agriculture and bio-economy sector in Europe.

Energy-efficient agriculture 

The financing is set to be rolled out across multiple EU Member States, with initial allocations expected to occur in Germany, Spain, Italy and the Netherlands.

The €200m (US$234m) is part of EIB’s €3bn (US$3.5bn) pan-European agricultural programme (PEA), launched in 2024 to support sustainable investment.

A key emphasis of the programme is improving access to financing for young, new and female farmers, as these “often face structural barriers in securing funding”, says the EIB.

At least 30% of the financing is set to be dedicated to climate action and environmental sustainability.

The agreement is set to support investments such as:

• Energy-efficient agricultural equipment.
• Renewable energy solutions.
• Sustainable technologies that contribute to climate change mitigation and adaptation.

“This operation will help European farmers and agri businesses invest in modern, more sustainable equipment, strengthen their resilience and better manage climate and market pressures,” says Gelsomina Vigliotti, Vice-President at EIB.

“By addressing persistent market gaps and working with trusted partners such as BPLS we are making long term finance more accessible, accelerating the transition towards a more resource efficient and competitive agricultural sector.” 

Modernising the agricultural sector

BPLS’ and EIB’s partnership is aiming to support the modernisation of the agricultural sector, especially through investments in assets with long economic lifetimes that are often difficult to finance through traditional banking channels.

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According to the EIB, at least 70% of the financing is set to be allocated to SMEs, with midcaps representing up to 30%.

By using the pan-European platform, the collaboration can be expected to improve access to long-term financing, reduce financing costs, extend maturities and mobilise additional private investment.

“This agreement reflects our commitment to supporting the transformation of European agriculture by making financing more accessible, more flexible and more aligned with the challenges our clients face,” says Neil Pein, CEO of BPLS. 

“By combining the strength of the EIB with our pan-European leasing platform, we are helping farmers and agri-businesses invest in more efficient, sustainable equipment while preserving their capacity to grow.” 

This initiative is said to “contribute directly to key European policy objectives, including the EU Common Agricultural Policy (CAP) and the EU Vision for Agriculture and Food, while aligning with the EIB Group’s 2024–2027 Strategic Roadmap, where agriculture and bioeconomy are identified as core priorities.”

In 2025, the EIB Group provided €6.9bn (US$8bn) in financing to the agriculture and bioeconomy sector, with approximately 60% channelled to SMEs via partner financial institutions.

Through this collaboration, the EIB and BNP Paribas Leasing Solutions aim to accelerate the transition towards a more resilient, sustainable and competitive European agricultural sector, ensuring that financing reaches businesses where it is most needed.

The pan-European agricultural programme

The PEAP was released on 17 July 2024, stating that the programme would consist in a “Lending Envelope supporting SMEs and mid-caps operating in agriculture and bioeconomy sectors across the EU.”

Ultimately, the aim of the PEAP is to enhance access to finance for the target beneficiaries.

Supporting agriculture and the bioeconomy is one of the eight policy priorities of the Bank under the EIB Group 2024–2027 Strategic Roadmap. 

It also aligns with the Common Agricultural Policy (CAP) legislative package for the 2023–2027 programming period. 

Furthermore, the operation aims to address market weaknesses and financing gaps affecting SMEs and mid-caps operating across bioeconomy value chains. 

These companies typically utilise and add value to the primary production of food, feed, fibre and biomass for energy, thereby supporting economic growth and employment opportunities in rural areas.