European Commission and Banco Português de Fomento Unlock 3 Billion Euros for Sustainable Projects in Portugal

Brussels, 18 June 2024 – The European Commission and the Banco Português de Fomento (BPF) formalised an agreement today that promises to unlock over 3 billion euros in investments destined for sustainable projects in Portugal. This agreement, signed under the InvestEU programme, aims to support Portuguese Small and Medium-sized Enterprises (SMEs), as well as transport and social infrastructure projects, reinforcing the national economy's recovery and growth capacity.

1. InvestEU: Boosting European Investment

2. InvestEU Objectives

3. Strategic Strands

4. Eligible Domains

5. Details of the Agreement

6. Impact for Portugal

7. About InvestEU

8. About Banco Português de Fomento

9. Conclusion

InvestEU: Boosting European Investment

InvestEU is a European Union (EU) programme that aims to mobilise over 372 billion euros in additional investment between 2021 and 2027. This programme grants budgetary guarantees to its implementing partners, increasing their capacity to take on risk and, consequently, attracting public and private investments for the European Union's policy priorities, such as the European Green Deal and the Digital Transition.

InvestEU Objectives

The main objectives of the InvestEU programme include:

• Increasing competitiveness, including research, innovation, and digitalisation.
• Promoting growth, employment, and economic sustainability in line with the Sustainable Development Goals (SDGs).
• Strengthening social resilience, inclusion, and innovation.
• Advancing scientific and technological progress, education, and training.
• Integrating the Union's capital markets.
• Promoting economic, social, and territorial cohesion.

Strategic Strands

To achieve these objectives, InvestEU supports operations in the following strategic strands:

• Sustainable infrastructure, including sustainable transport, infrastructure renewal, energy efficiency, and building renovation/integration.
• Research, innovation, and digitalisation.
• Provision of finance for SMEs and Small Mid-Caps.
• Provision of finance for social investments.

Eligible Domains

The InvestEU programme covers a wide range of domains eligible for funding, including:

• Development of the energy sector (renewable energy production, energy efficiency, infrastructure, heat supply, sustainable fuels, carbon capture).
• Development of mobility infrastructure and solutions (Trans-European Transport Network, smart urban mobility, alternative fuels, infrastructure).
• Environment and resources (water, waste, ecosystems, urban, rural and coastal development, climate change, circular economy, decarbonisation, cultural heritage sustainability).
• Digital connectivity infrastructure (high-capacity digital networks, 5G connectivity, improvements in areas with lower access).
• Research, development, and innovation (Horizon Europe objectives, creation of business hubs/networks, deployment of infrastructure, related technologies and processes, knowledge transfer, key enabling technologies, pharmaceutical product development).
• Development/implementation of digital technologies and services (AI, quantum technology, cybersecurity, IoT, blockchain, robotics, automation, photonics, recycling, and ICT device production).
• Provision of means for investment and working capital, risk financing, and financing for company acquisitions.
• Cultural and creative sectors, cultural heritage, media, audiovisual sector, journalism, and press (development of new technologies, digital resources, technological management of intellectual property rights).
• Tourism.
• Rehabilitation and restoration of industrial sites.
• Sustainable agriculture, forestry, fisheries, and aquaculture, sustainable bioeconomy.
• Social investments.
• Defence sector development (supply chain, research infrastructure, and training).
• Space sector development.
• Development of projects in the seas and oceans domain.

Details of the Agreement

The European Commission has granted BPF a guarantee of up to 210 million euros, estimating that this amount can mobilise over 3 billion euros in financing. This partnership makes BPF the first Portuguese partner to distribute InvestEU, utilising the European Union guarantee to foster investment in three strategic areas: Sustainable Infrastructure, SMEs, and Social Investment and Skills.

The funds will be directed towards sustainable transport, support for SMEs and Small Mid-Caps, covering research, innovation, and digitalisation activities, as well as social infrastructure projects.

Impact for Portugal

Pedro Reis, Minister of Economy, highlighted the importance of this agreement: “This agreement will allow Banco Português de Fomento to deliver over 3 billion euros of financing to companies in crucial areas, such as sustainable investment, innovation, and mobility. It is a significant step for the relaunch of economic growth in Portugal.”

Ana Carvalho, CEO of BPF, reinforced the partnership's relevance: “BPF plays a crucial role in promoting national investment. This agreement strengthens our cooperation with the European Union, making essential resources available to the economy so that more companies and projects can grow and compete in a challenging global scenario.”

About InvestEU

InvestEU is a single platform that brings together various European Union financial instruments to support investment in Europe. Composed of the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal, the programme facilitates project financing, making it simpler, more efficient, and flexible.

The InvestEU Fund, implemented through implementing partners, uses a budgetary guarantee of 26.2 billion euros to support investment projects, increasing the partners' capacity to take on risk and thus mobilising at least 372 billion euros in additional investment.

About Banco Português de Fomento

Banco Português de Fomento is an institution dedicated to the economic and social development of Portugal, creating innovative and competitive solutions to support the business ecosystem, fostering entrepreneurship, investment, and job creation. 

Conclusion

The agreement between the European Commission and Banco Português de Fomento represents a significant milestone in promoting sustainable investments in Portugal, standing out as a catalyst for economic growth, innovation, and competitiveness of Portuguese SMEs. Through the InvestEU programme, Portugal takes an important step in building a more resilient and sustainable economy, aligned with European political priorities. Applications will open soon.