How the largest multilateral development bank finances conflict

By Lama Almoayed, Accountability Counsel

Explore the EIB’s controversial investments in Israel, the implications of its new defense financing policy, and the urgent need for alignment with international law to prevent complicity in human rights violations, especially in light of the recent ICJ ruling.

The European Investment Bank (EIB), the financial arm of the European Union (EU), claims to promote sustainable development and uphold high environmental and social standards. However, a closer examination of the EIB’s investments in Israel reveal systemic issues, particularly concerning its human rights due diligence and compliance with international law. Despite its policies and principles, the EIB’s funding decisions may make it complicit in human rights violations against Palestinians, raising questions about its commitment to international obligations.

This concern has gained urgency following the International Court of Justice’s (ICJ) landmark advisory opinion on Israel’s actions in the Occupied Palestinian Territory (OPT). The ICJ determined that Israel’s occupation, settlements, and annexation of Palestinian territories are unlawful, and that its policies and practices in the OPT constitute racial segregation or apartheid. The court ruled that all states must acknowledge Israel’s unlawful presence in the OPT, end any aid or assistance that supports these violations, and differentiate in their dealings with Israel between its own territory and Palestinian territories. This opinion was issued amid an ongoing ICJ investigation into genocide in Gaza, which has led to the deaths of at least 39,445 Palestinians,* despite the ICJ’s order to Israel to prevent genocide and allow the entry of aid. In light of the ICJ’s opinion and the ongoing genocide investigation, the EIB must urgently revise its practices and investments in Israel to avoid complicity in human rights violations.

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