The European Investment Bank (EIB) has signed a €200m (£173.5m) financing agreement with BNP Paribas Leasing Solutions to accelerate the transition towards a more sustainable agricultural sector in Europe.
The initiative will support small and medium-sized enterprises (SMEs) and mid-caps operating in the agriculture and bioeconomy sectors in EU member states.
At least 30 per cent of the financing will be dedicated to climate action and environmental sustainability, enabling investments in energy efficient agricultural equipment, renewable energy solutions, and technologies contributing to climate change mitigation and adaptation.
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The financing is part of the EIB’s €3bn pan-European agricultural programme, launched in 2024, which has a particular focus on improving access to finance for young, new and female farmers, who “often face structural barriers in securing funding”.
Initial financing allocations will be rolled out in Italy, Germany, Belgium, the Netherlands and Spain, with a minimum of 70 per cent to be allocated to SMEs and up to 30 per cent to mid-caps.
Through the initiative, BNP Paribas Leasing Solutions’ pan-European platform will help improve access to long-term financing, reduce financing costs, extend maturities and mobilise additional private investment.
“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,” said EIB vice president Gelsomina Vigliotti.
“By addressing persistent market gaps and working with trusted partners such as BNP Paribas Leasing Solutions, we are making long-term finance more accessible, accelerating the transition towards a more resource efficient and competitive agricultural sector.”
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Neil Pein, chief executive of BNP Paribas Leasing Solutions, added: “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.”
The EIB Group, which is the financing arm of the European Union, owned by the 27 member states, provided €6.9bn in funding to the agriculture and bioeconomy sector in 2025, with approximately 60 per cent directed to SMEs via partner financial institutions.
Last year, BNP Paribas Leasing Solutions advanced €15.5bn in asset finance and presently manages a €38.8bn leased asset portfolio.
