Iceland's participation in the InvestEU programme promises increased investments in innovation, digitalization and green solutions in the country. The programme includes access to a €26.2 billion guarantee fund with a special focus on supporting companies in innovation and new technologies, sustainable infrastructure development and projects in favor of the green transition. This greatly increases access to finance for innovation, digital development and green solutions at the same interest rates as those offered in the countries of the European Union, but InvestEU's target groups are numerous, e.g. financial companies, public institutions and public companies, municipalities, pension funds and other funds, but also small and medium-sized companies (SME’s) and startup companies. Áslaug Arna Sigurbjörnsdóttir, Minister of Higher Education, Industry and Innovation, called yesterday for a press conference where the InvestEU program and its implementation were presented. The meeting was attended by representatives of the banks and funds participating in the project as well as representatives of the programme at the European Commission. You can watch a recording of the presentation in the video player below.

Funding of socially important projects

InvestEU increases opportunities to finance or get credit for large, socially important projects in Iceland, whether they are run by public entities, municipalities or private entities. Examples include the financing of projects in the field of energy production, energy exchange and the introduction of a circular economy and support for innovation in food production. In addition, the program is complimentary to other EU-programme in the field of research and innovation, and membership therefore increases the possibility of participation in large international projects in the field of innovation, sustainable development and digital transformation.

A variety of financing projects

The main implementers of the plan are the European Investment Bank (EIB), the European Investment Fund (EIF) and the Nordic Investment Bank (NIB).

Cooperation between public and private parties is encouraged for the financing of projects, and with the participation of Iceland, access to capital for innovation and development on European conditions is greatly increased. There is optimism that the capital invested in the InvestEU program will bring plentiful returns to the economies of the participating countries, in the interest of prosperity and increased competitiveness. Iceland and Norway are the only non-EU countries participating in this program.

Financing at better interest rates

As mentioned, Iceland's participation in the InvestEU program provides companies, entrepreneurs and investors with increased opportunities for financing innovative projects, in the field of green technology solutions and digitalization, on the same terms as those offered in countries within the European Union. The plan is also intended to support public entities, such as local authorities and institutions, for the development of infrastructure and new technologies in the interests of increased sustainability and well-being.

The InvestEU Guarantee Fund has already supported financing projects of various kinds in Europe, and numerous projects are just around the corner. Recent examples include EIB's  €90 million loan agreement with the Danish pharmaceutical company Zealand Pharma for drug development and EIF's  €40 million contribution to the European Blume Equity growth fund, which invests in green technology solutions. The Nordic Investment Bank has also announced  €300 million in financing in the form of loans, for the development and implementation of renewable energy sources in the Nordic countries.

Access to funding portal

In addition to the guarantee fund, a special promotional portal has been established under the name InvestEU Portal. It is an information platform where it is possible to register projects seeking funding, with the aim of attracting the attention of investors. Parties in Iceland now have access to registrations and communications through the InvestEU Portal. More information about the InvestEU program and its implementation will be available at Kría – Iceland Venture Initiative, and from Rannís.

[recording from meeting]

See press release on the Icelandic Government website

See press release on the EU Commission website