BAKU, Azerbaijan, November 22. The European Investment Bank (EIB) and Commerzbank have agreed on a new cooperation to support €1.2 billion of energy investments in Germany, Trend reports via the Bank.
The program is designed to accelerate local energy projects, address pressing sector needs, and advance the country’s energy transition.
This financing initiative marks the first in Europe under the Growth for Energy (G4E) initiative, which aims to facilitate local investment in clean energy. It will primarily back smaller municipal energy schemes, covering projects with total investments below €80 million.
Under the agreement, the EIB will cover up to 50% of Commerzbank’s risk exposure for loans to eligible municipal energy projects on a line-by-line basis. This risk-sharing mechanism allows Commerzbank to allocate less capital per loan, significantly increasing its lending capacity. As a result, financing can be distributed more quickly and widely to projects in electricity generation, district heating, and grid expansion—modernizing infrastructure, lowering energy costs, and supporting Germany’s climate objectives.
The G4E initiative targets investments at the local and regional levels, empowering municipal utilities to implement key projects that underpin the clean energy transition and strengthen regional economic resilience. By leveraging EIB’s guarantee, Commerzbank can expand access to long-term finance for renewable electricity generation, grid reinforcement, and modern district heating systems.
The partnership is expected to serve as a model for similar interventions across the EU. Over the last five years, the EIB has provided more than €5.5 billion for energy investments across Germany.