Japan: EIB and Japan Bank for International Cooperation (JBIC) to work on joint investments
26 October 2021
EU bank and JBIC to identify co-financing opportunities on EU infrastructure connectivity (transport, energy and digitalisation) and projects contributing to the carbon neutrality of the European Union
In Asia, Africa and the EU neighbouring countries, the EIB and JBIC will cooperate on identifying co-financing of connectivity (transport, energy and digital) projects
Two banks expand initial Memorandum of Understanding signed in 2018
The European Investment Bank (EIB), the bank of the European Union, and Japan Bank for International Cooperation (JBIC) have agreed to further expand cooperation on a range of globally relevant investments across the globe. This includes identifying co-financing opportunities for infrastructure connectivity (transport, energy and digitalisation) and projects contributing to carbon neutrality in the European Union, such as subsea interconnectors, offshore wind plans, battery storage facilities and hydrogen technology development. In Asia, Africa and the EU neighbouring countries, the EIB and JBIC have agreed to cooperate on co-financing of connectivity (transport, energy and digital) projects.
The two banks will also cooperate on developing innovative projects across the globe relevant to implementation of UN sustainable development goals (SDGs), including investment in projects on sustainable oceans and the prevention of marine pollution.
The agreement was formalised by expanding the Memorandum of Understanding (MoU) signed between JBIC and the EIB in 2018. EIB Vice-President Ambroise Fayolle and Deputy Governor of JBIC Nobumitsu Hayashi signed the new, extended MoU on 22 October 2021.
EIB Vice-President Ambroise Fayolle said: “As the bank of the European Union, the EIB is happy to strengthen our good relationship with Japan, further our cooperation and unlock new, more affordable financing for investments in sectors key to the success of global climate action, faster COVID-19 recovery and sustainable development. We are proud to have partnered with JBIC as this partnership will contribute towards a more sustainable, green and modern world economy.”
Deputy Governor of JBIC, Nobumitsu Hayashi, said: “JBIC is pleased to expand the Memorandum of Understanding with the EIB, which contributes to economic integration and balanced development both in Europe and beyond. Since the signing of the Memorandum of Understanding in October 2018, JBIC and the EIB have held successive discussions at various levels to specify the scope of collaboration and enhance cooperation. We believe that this expanded MoU will further strengthen cooperation between the two policy-based public financial institutions in areas such as climate and environmental change measures in which Japan and the European Union will play a leading role.”
Towards more EU-Japan cooperation
The European Commission and the Government of Japan reached an agreement in principle on the main elements of an EU-Japan Economic Partnership Agreement in July 2017. This resulted in the signature of two further strategic agreements in July 2018: the Strategic Partnership Agreement and the Economic Partnership Agreement.
Within this framework, the EIB engaged with Japanese counterparts to establish cooperation in finding joint co-investment opportunities. As a result, in October 2018, the EIB signed two memoranda of understanding with JBIC (“2018 MoU”) and with Nippon Export and Investment Insurance (NEXI). In 2019, the EIB also signed an MoU with Japan International Cooperation Agency (JICA).
This MoU follows up on the EU-Asia Connectivity strategy signed in 2018 and supports the recently approved EU-Japan Sustainable Connectivity partnership. It enables the two banks to work on co-financing and co-investment opportunities in projects conducted in developing countries. Operations will be aligned with the “G20 Principles for Quality Infrastructure Investment”, endorsed at the G20 Osaka Summit in June 2019.
In May 2021, the European Union and Japan announced their intention to form a Green Alliance to accelerate the transition of both economies towards becoming climate-neutral, circular and resource-efficient in the coming decades.
About the EIB in Asia:
For 25 years, the EIB has supported economic development in Asia and the Pacific region through projects ranging from cutting travel times for the people of Bangalore with a new metro line, to providing cheaper, cleaner energy to western Nepal.
In Asia, the EIB’s focus is our lending on climate action across all sectors. Through our financing, we act as a catalyst to attract the funding needed to meet the UN’s Sustainable Development Goals for 2030. We also work to include gender equality in our projects, ensuring that women, men, girls and boys can benefit from projects equally and equitably.
About the JBIC:
Japan Bank for International Cooperation (JBIC) is a policy-driven financial institution wholly owned by the Japanese government, and conducts lending, investment and guarantee operations. JBIC's remit is to contribute to the sound development of Japan, the international economy and society.
Cooperation between The European Investment Bank (EIB) and the Japanese International Cooperation Agency (JICA) is expanding. The two organizations will aim to work together on a range of globally relevant issues – for example: transport, quality infrastructure investment, microfinance and renewable energy sources. EIB and JICA will also cooperate on technical assistance/project preparation and create synergies and exchanges at the level of their local offices to extend the positive impact of their work.
On October 22, at the Japan-EU High-Level Dialogue for Industry, Trade and Economy, the EIB signed two Memoranda of Understanding with the Japan Bank for International Cooperation (JBIC), represented by its Director General of New Energy and Power Finance Department I, Yutaka Inaba; and with the Nippon Export and Investment Insurance (NEXI), represented by its Executive Officer Tetsuya Koizumi.
President Hoyer and European Commissioner Rehn signed a new Memorandum of Understanding (MoU) concerning the External Lending Mandate (ELM) at the Informal Ecofin in Vilnius.
The MoU aims at increasing cooperation between the EIB, the European Commission and the European External Action Service (EEAS) and ensuring that the EIB, as the “EU Bank”, supports EU external policies.