The European Investment Bank (EIB) has signed a €40 million loan with The Navigator Company, Portugal’s leading pulp and paper producer, to accelerate the company’s decarbonisation strategy and support its innovation drive toward carbon neutrality.
The financing, which represents the first tranche of an €80 million package approved by the EIB, will fund upgrades at Navigator’s facilities across Portugal aimed at cutting greenhouse gas emissions and boosting energy efficiency.
Advancing Low-Carbon Technologies
Navigator plans to deploy renewable energy solutions and energy-efficient equipment, including new cogeneration turbines, photovoltaic plants, and a biomass-based boiler. The project also covers the conversion of limekilns to biomass use, a major step toward reducing fossil fuel dependence.
In addition, part of the investment will go toward developing innovative biobased products — notably, a world-first moulded fibre packaging plant in Aveiro that uses eucalyptus pulp to produce sustainable alternatives to plastic packaging.
“This project is a great example of how the EIB can support companies on their path towards carbon neutrality while fostering innovation and driving competitiveness,” said Jean-Christophe Laloux, EIB Director General of Financing and Advisory Operations within the European Union.
Backed by the InvestEU and TechEU Programs
The loan is supported by the InvestEU program, the EU’s flagship initiative to mobilize private and public investment for sustainability and innovation, and forms part of TechEU, an EIB Group initiative to drive industrial decarbonisation and technological transformation across Europe.
Navigator Executive Director Fernando Araújo emphasized that the partnership builds on a long-standing relationship between the company and the EIB. “With this operation, Navigator strengthens its commitment to sustainable finance while consolidating the structure of its debt and ensuring balanced financial management,” he said.
Reinforcing Portugal’s Bioeconomy
The project aligns with the EIB’s strategic goals in climate action, environmental sustainability, and the bioeconomy, while contributing to the EU’s REPowerEU plan to reduce fossil fuel dependency.
The Navigator Company — Portugal’s largest pulp and paper producer and a global leader in sustainable forest-based products — has pledged to decarbonize its industrial complexes by 2035, 15 years ahead of EU climate targets.
With a turnover of €2.1 billion in 2024, Navigator exports over 90% of its production to 134 countries, employing more than 30,000 people directly and indirectly. The company’s continued investments reaffirm its leadership in sustainable forestry and circular packaging innovation.
