The EIB gender equality and women’s economic empowerment overview 2024 is an evidence-based report that showcases the outcomes of the EIB’s financing approach and features research findings and data analysis. It explores topics such as women entrepreneurs and gender-smart businesses, accelerating climate action, and designing transport and infrastructure with women in mind.
“Widespread evidence shows that gender equality is associated with faster economic development, higher income per capita,” stated the report. Improving gender equality in the European Union could lead to a 9.6% increase in EU GDP per capita, equivalent to €3.15trn, and the addition of €10.5m jobs by 2050, said the EIB, using data from the European Institute for Gender Equality.
However, based on findings from the World Economic Forum, the report noted that “it would take 169 years to close the gender gap.”
Delano caught up with Carmen Niethammer, senior gender specialist at the EIB to discuss the reality of the gender gap, reflect on the gender-focused projects the EIB supported in 2023 and discuss some key takeaways from the report.
€5.8bn for gender projects
Over one-third (39.3%) of the operations of EIB Global, which serves as the bank’s development arm, was dedicated to gender equality. A total of €5.8bn went to gender projects, with the majority (€5.2bn) supporting projects in the bioeconomy, digital, energy, health, mobility, urban development and water sectors.
$16.3bn mobilised through the 2X challenge
Internationally agreed upon standards are a key way to measure impact. 2X Global is a global organisation that aims to build capacity and deploy capital in a gender-smart way, while the 2X challenge--launched in 2018--is a commitment by development financial institutions (including the EIB) to mobilise $3bn in developing countries over three years.
“The 2X investment criteria--applicable to private sector investments in emerging markets so far--have quickly become a global industry standard, representing a shared definition and providing a set measurable metrics of what “good” looks like in gender finance,” explained Niethammer, emphasising the significance of the 2X criteria and 2X Challenge.
The EIB was among the first international financial institutions to adopt the criteria, which include 30-50% or more women in the workforce and a programme supporting women’s employment, 20-30% or more women in senior leadership positions, or providing products or services that specifically benefit women. “This has informed the EIB’s gender-investing reporting, particularly for SME lending operations/intermediated financing.”
From 2021-2022, the collective effort of the 2X Challenge community has “supported 470 businesses supporting women’s economic empowerment,” raising $16.3bn and exceeding the 2X Challenge target of $15bn. “The 2X criteria are so important, because everyone now actually knows what we mean when we say a particular investment is closing gender gaps in line with the 2X gender criteria,” she added.
Whenever we look at a project, we think through how can this project possibly promote women’s employment and/or leadership? How can it promote women's access to finance?
“It's a reflection of our portfolio,” said Niethammer, explaining how the EIB project cycle works. “As an institution we are committed to close gender gaps through our financing. And so, whenever we look at a project, we think through how can this project possibly promote women’s employment and/or leadership? How can it promote women's access to finance?”
She provided an example of how intermediated finance works. “Together with the financial institution client, we discuss how EIB financing can be targeted to benefit women entrepreneurs or businesses promoting gender equality. The client then commits to allocating a certain portion of EIB funding to, for example, benefit women-owned businesses.”
By meeting the 2X criteria and surpassing it, these projects are then assigned a "gender tag," signifying the investment’s commitment to financing women. She explained that “this approach allows for the tracking of initiatives expected to have a positive impact on closing the gender finance gap.”
Energy poverty hits women “particularly hard”
“We were able to see that women-led companies were not only better in terms of human capital investments,” added Niethammer. “They also attract more women and retain more women in the companies, and they are also better when it came to environmental goals. We call it the spillover effect.”
In 2023, 37 of the EIB’s gender-related projects were focused on climate action and environmental sustainability. This represents 59% of the EIB’s financing for gender projects.
The EIB Group launched the Women Climate Leaders Network in February 2024, assembling 47 female executives from various industries across all 27 EU member states. Their collective focus is on innovative new business models and strategies to facilitate the transition towards low-carbon and green initiatives.
“Greater participation of women in the energy sector can accelerate the transition to clean energy. Energy poverty also hits women particularly hard. With no access to other energy sources, 13% of the global population is forced to collect wood for fuel, and almost 85% of this work is carried out by women and girls,” the report stated.
Designing transport and infrastructure with women in mind
In 2023, ten of the gender-focused projects that the EIB financed aimed to change how infrastructure is planned and delivered to make cities and transport systems more inclusive and climate-resilient in Europe, Africa and India. In addition, EIB advisory experts provided technical support to advance gender-inclusive practices in the sector in Europe.
“Vehicle pollution is a big contributor to greenhouse gases,” said Niethammer, offering an example. “The logic here is to actually make sure that public transport is available to as many people as possible and take vehicles off the street to reduce air pollution. A lot of our investments focus on improving infrastructure systems and encouraging public transport systems that work for all.”
She highlighted a recent EIB investment in Spain. “When Barcelona’s public transport company was talking to the EIB about loans to renew its rolling stock and buy electric buses and charging infrastructure, the company also wanted to address incidents of sexual harassment and discrimination occurring on its networks.”
Preventing sexual harassment is a social responsibility, but it also has economic benefits for the community.
“You can finance the most climate-friendly infrastructure transport solutions, but if perceived or real security concerns keep passengers--particularly women, members of the LGBTIQ community and other vulnerable groups--from using public transport, then the potential environmental gains are not optimised,” Niethammer explained.
“Together with the client Transports Metropolitans de Barcelona (TMB), the EIB explored how to further improve the ridership experience of passengers in the Barcelona metropolitan area. TMB identified five main areas for action: creating safer, friendlier, more welcoming spaces; training staff; raising awareness of the problem in the general population; bringing training into schools; and reviewing ways the police and other bodies can help,” she added.
With regards to the impact made by Barcelona’s project, Niethammer noted that “when women and others feel safe and secure, everybody would want to travel more using public transport systems, which in addition to environmental gains, may lead to taking up new employment opportunities. For example, women might want to start up a business that they didn’t think about before, because now they actually use public transport and benefit from significant time savings, etc. Preventing sexual harassment is a social responsibility, but it also has economic benefits for the community.”
“TMB and the EIB hope the harassment prevention plan will serve as a blueprint for other regions and cities. The vision is to highlight Barcelona as best in class,” said Niethammer. “To demonstrate that a gender-based harassment prevention plan is an investment in the community, with economic and business benefits.”
