Inside BNP Paribas’ & EIB’s US$234m Agriculture Investment

The European Investment Bank (EIB) has committed €200m (US$234m) to finance agricultural and bio-economy businesses across the EU through a partnership with BNP Paribas Leasing Solutions.

The funding could enable food producers and agri-businesses to invest in equipment that reduces energy consumption and environmental impact.

According to the European Environment Agency, agriculture accounts for 11% of all greenhouse gas emissions in the EU to date.

The financing arrangement targets small- and medium-sized enterprises and mid-cap companies operating in the agriculture and bio-economy sector. Initial allocations are expected in Germany, Spain, Italy and the Netherlands.

Supporting food production sustainability

The €200m (US$234m) forms part of the EIB's €3bn (US$3.5bn) pan-European agricultural programme, which launched in 2024 to support sustainable investment.

At least 30% of the financing is set to be dedicated to climate action and environmental sustainability.

According to the EIB, the programme emphasises improving access to financing for young, new and female farmers.

These groups "often face structural barriers in securing funding," says the bank.

The agreement supports investments in energy-efficient agricultural equipment, renewable energy solutions and sustainable technologies that help mitigate and adapt to climate change.

These investments could enable food producers to reduce operational costs whilst meeting environmental targets.

Food and drink businesses that rely on agricultural supply chains could benefit from improved access to long-term financing through the collaboration.

The platform could reduce financing costs, extend maturities and mobilise additional private investment.

Equipment investment for food supply chains

"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 the 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."

The partnership between BNP Paribas Leasing Solutions and the EIB aims to support the modernisation of the agricultural sector.

The focus includes investments in assets with long economic lifetimes that are often difficult to finance through traditional banking channels.

According to the EIB, at least 70% of the financing is set to be allocated to small and medium-sized enterprises.

Midcaps are set to represent up to 30%.

The collaboration could improve conditions for businesses operating across food production value chains.

These companies typically utilise and add value to the primary production of food, feed, fibre and biomass for energy.

Financing access for agricultural businesses

"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 BNP Paribas Leasing Solutions.

"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 initiative is said to contribute to EU policy objectives. These include the Common Agricultural Policy and the EU Vision for Agriculture and Food.

The arrangement aligns with the EIB Group's 2024–2027 Strategic Roadmap.

Agriculture and bioeconomy are identified as core priorities within this framework.

In 2025, the EIB Group provided €6.9bn (US$8bn) in financing to the agriculture and bioeconomy sector.

According to the bank, approximately 60% was channelled to small and medium-sized enterprises via partner financial institutions.

The pan-European agricultural programme was released on 17 July 2024.

The programme consists of a lending envelope supporting small and medium-sized enterprises and mid-caps operating in agriculture and bioeconomy sectors across the EU.

The aim of the programme is to enhance access to finance for the target beneficiaries.

Supporting agriculture and the bioeconomy is one of the bank's eight policy priorities under the European Investment Bank Group 2024–2027 Strategic Roadmap.

The proposed lending envelope is expected to contribute to several EU policy objectives. These include:

• The modernisation of the agricultural sector.
• Support for young and new farmers.
• Climate action and environmental sustainability.
• Gender equality.
• Rural development and territorial cohesion.

The initiative aligns with the Common Agricultural Policy legislative package for the 2023–2027 programming period.

The operation aims to address market weaknesses and financing gaps affecting small and medium-sized enterprises and mid-caps operating across bioeconomy value chains.

These companies support economic growth and employment opportunities in rural areas.

Through this collaboration, the EIB and BPLS will help the European agricultural sector become more resilient, sustainable and competitive and ensure financing reaches businesses where it is most needed.