ABB and the European Investment Bank (EIB) have inked a €500 million financing agreement, prioritizing sustainability in ABB’s Electrification business. The loan will fuel research and development efforts, focusing on next-gen electrical distribution solutions pivotal for the energy transition.

The funds will aid ABB in the creation of innovative technologies, including solid-state circuit breakers and eco-friendly switchgear. These advancements aim to enhance building efficiency and automation, crucial elements in the ongoing global shift toward cleaner energy sources.

In addressing the soaring demand for electricity—outpacing other energy forms by 10 times—ABB’s initiatives align with the European Union’s commitment to achieving net zero greenhouse gas emissions by 2050. The collaborative projects, spanning countries like Germany, Italy, Switzerland, and others, emphasize the role of electrification in Europe’s energy transition.

Commenting on the collaboration, ABB CFO Timo Ihamuotila highlighted the significance of electrification in Europe’s low-carbon evolution. EIB Vice-President Ambroise Fayolle emphasized the vital role of ABB’s research in greening Europe’s economy, stressing that electrification stands as a potent tool in combating climate change.

The EIB financing aligns with the European Green Deal, supporting the EU’s ambitions for a net-zero economy by 2050. This investment in green innovation underscores the necessity of technological advancements for a sustainable economy, protecting the environment and fostering job creation.

ABB’s commitment to research and development remains a cornerstone of its strategic growth, with substantial annual investments and collaborations with universities and research institutions worldwide.

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