Brussels, March 25, 2025 – Nina Schindler, Chief Executive Officer of the European Association of Co-operative Banks, represented cooperative banks in the “Financing the Transition” session of the high-level event “Building Resilience: Climate proofing EU Agriculture” organised in Florence by the European Investment Bank (EIB) and the Food and Agriculture Organization (FAO), in collaboration with the Florence School of Transnational Governance (STG) and the European University Institute (EUI).
As long-standing partners of the European agricultural community, cooperative banks continue to play a crucial role in supporting farmers through evolving challenges including climate change. With their deep regional ties and history of financial support, cooperative banks are at the forefront of helping the agricultural sector adapt and thrive through sustainable financing solutions.
Nina Schindler therefore highlighted the following aspects:
1. The Role of (Cooperative) Banks in Supporting the Transition
Banks are increasingly factoring in Environmental, Social, and Governance (ESG) criteria when evaluating financial risks in agriculture. With the sector facing increasing risks from extreme weather events and biodiversity loss, banks are adapting their lending practices to support sustainable farming. The availability of ESG data from farmers and the determination benchmarks to describe transition paths therefore become essential. This would also allow banks to offer preferential loans and favorable financial products for farmers who implement sustainable and climate-resilient practices and therefore build their resilience for the future.
2. Innovative Financing Mechanisms
The cost of climate adaptation requires a pooling of private and public finance. Therefore, blended finance, bringing together public and private financial entities to bridge the investment gap is a key theme in the debate. In that context, Ms. Schindler underlined that public guaranteed mechanisms are effective ways to incentivize farmers to pursue sustainable agriculture while securing long-term economic viability.
3. The Need for Holistic Policy Approaches
For the transition to be successful, experts emphasized the importance of coherent and consistent regulatory frameworks, which ensure that agricultural practices are both environmentally sustainable and economically feasible. Additionally, new ways for farmers to generate income have to be explored. For example, the potential for carbon markets as new income streams for farmers while supporting Europe’s broader climate goals need to be explored further.
“Cooperative banks are committed to finding ways to finance the agricultural transition towards a more sustainable and resilient future,” said Nina Schindler. “Our sector is proud to be at the heart of this critical journey, ensuring farmers can adapt to the changing climate while continuing to feed Europe.”
The European Association of Co-operative Banks (EACB) remains dedicated to fostering collaboration and dialogue between financial institutions and the agricultural community, working together to support the sector’s long-term success.