EIB and BNP Paribas Finance Clean European Farm Technology

The European Investment Bank and BNP Paribas Leasing Solutions are investing €200m (US$234m) to support European farmers and agricultural businesses as they adopt cleaner technology and strengthen climate resilience across the EU.

Agriculture accounts for 11% of all greenhouse gas, or GHG, emissions in the EU, according to the European Environment Agency.

Against this backdrop, the European Investment Bank (EIB) signs a financing agreement with BNP Paribas Leasing Solutions (BNPLS) to improve access to funding for SMEs, and mid-cap companies operating in agriculture and the bioeconomy sector.

The financing rolls out across several EU Member States, with initial allocations expected in Germany, Spain, Italy and the Netherlands.

The agreement forms part of the EIB’s €3bn (US$3.5bn) pan-European agricultural programme (PEAP), launched in 2024 to support sustainable investment across Europe.

At least 30% of the financing supports climate action and environmental sustainability projects.

The initiative focuses on helping businesses invest in energy-efficient agricultural equipment, renewable energy solutions and sustainable technologies that support 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.”

Financing supports cleaner agricultural investment

The EIB says the programme places particular attention on improving access to financing for young, new and female farmers. According to the EIB, these groups “often face structural barriers in securing funding”.

The agreement supports investment in assets with long economic lifetimes, which can prove difficult to finance through traditional banking channels.

Leasing finance allows agricultural businesses to spread the cost of expensive equipment over longer periods while preserving cash flow for operations and expansion.

At least 70% of the financing will go to SMEs, while mid-cap companies could receive up to 30%.

The EIB and BPLS expect the pan-European platform to improve access to long-term financing, reduce financing costs, extend maturities and mobilise additional private investment into the agricultural sector.

The agreement aligns with wider EU sustainability and agricultural goals.

These include the Common Agricultural Policy (CAP), which supports farming, rural communities and food production across EU Member States.

The initiative also aligns with the EU Vision for Agriculture and Food and the EIB Group’s 2024–2027 Strategic Roadmap, where agriculture and bioeconomy remain core priorities.

The bioeconomy refers to activities such as funding linked to biological resources like crops, forestry, biomass and food production.

Companies operating in this sector utilise and add value to food, feed, fibre and biomass production.

In 2025, the EIB Group provided €6.9bn (US$8bn) in financing to the agriculture and bioeconomy sector. Around 60% of this funding reached SMEs through partner financial institutions.

Partnership targets resilience and efficiency

BNPLS says the partnership supports the modernisation of European agriculture while helping businesses improve sustainability and operational efficiency.

“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.”

The agreement arrives as European agriculture continues to face pressure linked to climate conditions, energy costs and changing market conditions.

The financing also supports technologies linked to climate adaptation.

The EIB says the initiative contributes directly to European policy objectives while supporting businesses where financing is most needed.

PEAP expands support for agriculture and bioeconomy

The pan-European agricultural programme launched on 17 July 2024.

According to the EIB, the programme consists of a “Lending Envelope supporting SMEs and mid-caps operating in agriculture and bioeconomy sectors across the EU.”

The programme focuses on enhancing access to finance for target beneficiaries throughout the agricultural and bioeconomy supply chain.

Supporting agriculture and the bioeconomy stands as one of eight policy priorities under the EIB Group 2024–2027 Strategic Roadmap. The programme also aligns with the CAP legislative package covering the 2023–2027 programming period.

The operation addresses market weaknesses and financing gaps affecting SMEs and mid-caps operating across bioeconomy value chains. These businesses support economic growth and employment opportunities in rural areas while contributing to food, feed, fibre and biomass production.

BNP Paribas explains that the “agriculture sector is in the middle of a structural transformation aiming at fostering more sustainable and traditional practices.”

Through the collaboration, the EIB and BNP Paribas Leasing Solutions aim to support a more resilient, sustainable and competitive European agricultural sector while ensuring financing reaches businesses across the EU agricultural economy.