Details
- Identification
- Discussion Paper 220
- Publication date
- 14 March 2025
- Authors
- Salvatore Amico Roxas | Matteo Cuda | Marina Kisvarday | Filippo Munisteri | Francesco Scotti | Directorate-General for Economic and Financial Affairs
Description
This paper maps how National Promotional Banks and Institutions (NPBIs) align their strategies with the SDGs in Europe, highlighting key focus areas, existing gaps, and the drivers behind their engagement based on institutional theory.
Highlights
- Balancing short-term financial needs with long-term sustainable investments is challenging for NPBIs: pursuing SDGs often involves long-term commitments that may not yield immediate financial returns, creating financial risks for NPBIs.
- The governance structure of NPBIs is significantly shaped by state ownership and the mandates they receive.
- The governance of these institutions is characterised by a clear mandate for sustainable development, driving long-term investments.
- Although many NPBIs reference the SDGs, their integration into core activities and financing criteria often remains incomplete.
- While the integration of SDGs into NPBIs’ strategies could offer long-term benefits, it also presents several challenges and faces barriers.
- Financial instruments used by NPBIs tend to be less suitable compared to tools developed at the supranational level, such as those under InvestEU, which offer risk mitigation mechanisms.
- While NPBIs play a crucial role in infrastructure financing, they still need to leverage more innovative financial tools to de-risk and attract private investment.
Information and identifiers
Discussion Paper 220. March 2025. Brussels. PDF. 52pp. Tab. Graph. Bibliogr. Free.
KC-01-25-012-EN-N (online)
ISBN 978-92-68-23671-0 (online)
ISSN 2443-8022 (online)
doi:10.2765/1106243 (online)
JEL classification: G23, M14, O19, Q58
Disclaimer
European Economy Discussion Papers are written by the staff of the European Commission’s Directorate-General for Economic and Financial Affairs, or by experts working in association with them, to inform discussion on economic policy and to stimulate debate. The views expressed in this document are solely those of the author(s) and do not necessarily represent the official views of the European Commission.
