EIB lends €32 million to Carraro to support decarbonisation of the agricultural sector

The European Investment Bank (EIB) and Carraro Finance, the Carraro Group’s financial and treasury arm, have signed a €32 million finance contract to support the Group’s R&D projects during the period 2023-2026. This is the second operation signed between the EIB and Carraro Group, the world leader in transmission systems for off-highway vehicles and specialised tractors, totalling €82 million. 

Thanks to the funds made available by the EU bank, supported by a guarantee from the European Fund for Strategic Investments (EFSI) – the main pillar of the Investment Plan for Europe – the Carraro Group will invest in electrification technologies for agricultural machinery and power transmission systems for tractors and off-road vehicles. Further operations are planned to improve the digitisation of the processes of this company based in Campodarsego (Padua), designed to improve digital infrastructure and cybersecurity. 

This operation will help to promote environmental sustainability and decarbonisation of the agricultural sector, improving performance and energy efficiency while reducing production costs and the final price of electrified vehicles for off-highway and commercial applications.

“Electrification of agricultural machinery and tractors is a key element in improving energy efficiency, reducing operating costs and, in particular, decarbonising the agricultural sector. This operation with Carraro, the global leader in the production of transmission systems for agricultural machinery, confirms our commitment to supporting Italian entrepreneurship and underscores the EIB’s key role as the EU climate bank to promote the ecological transition,” said EIB Vice President Gelsomina Vigliotti.  

Commissioner for the Economy, Paolo Gentiloni, said: “Securing the green transition requires significant and sustained investment. This agreement is a prime example of the significant financial support the Investment Plan for Europe has generated to decarbonise important sectors of our economy in pursuit of the green transition. The new InvestEU programme builds on the successful model of the Investment Plan for Europe and will continue this positive legacy.”

“The agricultural sector, like the earthmoving machinery sector, is undergoing significant changes. In this context, expertise and investment in research must be provided systemically,” said Chairman of the Carraro Group Enrico Carraro. “In terms of innovation, this entails the integration of mechanics, electronics and electrification. Thanks to the successful combination of these three technologies, we will be able to develop low-impact solutions that can significantly improve the efficiency and productivity of the machinery in which they will be applied, while reducing consumption and emissions. This agreement with the EIB gives us particular satisfaction as it recognises our commitment to innovation and will give us the opportunity to accelerate investment in R&D to benefit the ecological transition.”