By Gerelyn Terzo, Global AgInvesting Media
Europe’s push toward greener agriculture just got a major financial boost. In a move that could reshape how farmers access capital for sustainable upgrades to their operations, the European Investment Bank (EIB), in partnership with Netherlands-based Rabobank and its leasing and financing affiliate DLL, has unveiled a €1 billion (US$1.2 billion) initiative aimed at accelerating the EU’s agri-food transition. The mission is to expand financing access for small- and medium-sized enterprises (SMEs) and mid-caps in sustainability and bioeconomy sectors, with agriculture at the core.
As European ag players contend with climate pressures and tightening regulatory mandates, this capital infusion offers a critical lifeline to agri-businesses looking to modernize and scale. The financing structure involves multiple moving parts.
The EIB will deploy two €250 million (US$293.8 million) credit lines—one through Rabobank and one through DLL—targeting sustainable and agriculture-focused ventures across key EU markets. Each institution will match the EIB’s commitment, effectively doubling the pool and putting €500 million (US$587.6 million) each into the market.
Rabobank provided the following statement to GAI News: “The recently announced €1 billion financing partnership between Rabobank, DLL and the European Investment Bank (EIB) is indeed designed to support small and medium-sized enterprises (SMEs) across Europe, with a strong focus on sustainability and agriculture. Of the €500 million allocated by Rabobank, at least 40 percent is earmarked for climate-relevant and bioeconomy investments, which includes support for the agricultural sector in the Netherlands.”
DLL will replicate that strategy across France, Germany, Italy, Spain, Belgium, Sweden, Poland, Ireland and the Netherlands.
EIB Director General Jean-Christophe Laloux described climate-focused financing as a cornerstone of Europe’s economic transformation, saying: “We have a long track-record with Rabobank and DLL in terms of climate relevant financing, and hope that this facility can convince other financiers to make available more support for entrepreneurs developing more sustainable projects.”
Carlo van Kemenade, director of Retail NL and member of the Managing Board of Rabobank said, “We are proud to build on the successful partnership with the EIB and the new launch of impact loans. Sustainability is an important pillar of Rabobank’s strategy. Clients are also very positive about this impact loan. The interest rate discount is both a reward for the impact they have as a leader in sustainability and an encouragement to continue on the path we have set with our clients.”
For Rabobank—a cooperative bank long embedded in Europe’s food and ag landscape—this partnership deepens its role in supporting the transition to sustainable farming. Lara Yocarini, member of Rabobank’s Managing Board and CEO of DLL, stated, “The attractive funding from the European Investment Bank will enhance our ability to provide more accessible, affordable and tailored leasing solutions, ultimately reducing barriers for our partners and customers to invest in more sustainable equipment and technology.”
Alongside this funding infusion, Rabobank recently partnered with Nestlé and Vreugdenhil Dairy Foods to launch the ‘Tomorrow’s Dairy’ program—a five-year, €50 million (US$58.7 million) initiative aimed at “future-proofing” the Netherlands’ dairy sector. The program offers farmers lower interest rates and sustainability-linked premiums, directly tying income to measurable environmental outcomes.
Even with more financing options coming online, Dutch farmers face compounding pressures. The past year brought a brutal mix of spring droughts followed by summer floods, which slashed yields and increased disease risk in cereal and horticulture crops. Meanwhile, policymakers in The Hague have mandated steep nitrogen emission reductions, forcing many producers to cut livestock or overhaul fertilizer use.
These dual pressures—climate volatility and regulatory tightening—have amplified the urgency for investment in sustainable farm infrastructure. Farmers increasingly require capital to adopt precision irrigation, low-emission machinery, greenhouse retrofits and bio-based crop inputs. Yet for smaller operators, securing loans at competitive rates remains a challenge. This €1 billion fund is designed to close that financing gap, enabling investment that lowers emissions while boosting productivity and resilience.
Sustainability-driven equipment like electric tractors, solar-powered barn systems and biological pest controls often command steep upfront costs. Without access to specialized leasing or credit, widespread adoption is slow. By blending EIB capital with Rabobank and DLL’s financing solutions, the initiative aims to lower that barrier, making climate-friendly upgrades more attainable across the EU ag sector.
Over the past decade, the EIB has committed more than €27 billion to Dutch projects across sectors in R&D, infrastructure and SME development. This latest effort demonstrates a deeper pivot toward climate-smart agriculture and green infrastructure. If successful, the model could be replicated by other financing institutions and scaled across EU member states.
For growers, processors and cooperatives, the timing of this capital injection couldn’t be better. It comes as climate swings grow sharper, consumer demand for low-impact food intensifies and emissions policies stiffen. With new financing tools from Rabobank and DLL, backed by the EIB, Europe’s agri-food sector is better positioned to invest in resilient, climate-forward growth.
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