European Investment Bank to stop financing fossil projects

The European Investment Bank has announced that it will end financing for fossil fuel energy projects from the end of 2021 as part of its new energy lending policy. It also aims to align all its financing activities with the Paris Agreement.

The European Investment Bank has agreed to a new energy lending policy that will see it stop financing fossil fuel projects, including gas, from the end of 2021 onwards. This new policy is a “crucial milestone in the fight against global warming”, said EIB vice president in charge of energy, Andrew McDowell.

Under its new energy lending policy, EIB will prioritize energy efficiency and energy decarbonization projects and increase financing for decentralized energy production, innovative energy storage and e-mobility. It will also finance grid investment to support new, intermittent energy sources and increase the impact of investment to spur energy transformation outside the EU.

Calling climate a “top issue on the political agenda of our time”, EIB president Werner Hoyer said that the bank is also going to launch the most ambitious climate investment strategy of any public financial institution anywhere that will see it unlock €1 trillion of investments in climate action and environmental sustainability from 2021 to 2030.

It also pledged to all its financing activities with the principles and goals of the Paris Agreement by the end of 2020 and ensure that its financing supports those regions and countries more affected by climate change.

“To meet the Paris climate goals we urgently need to raise our level of ambition and this is precisely what we have done,” said EIB vice president for climate action and environment Emma Navarro. “The European Union and its bank, the EIB, commit to moblize investments on an unprecedented scale to support climate action projects around the world… Any financing that is not green will be made sustainable.”

Image credit: Simon & His Camera via Flickr

You may also like...

Leave a Reply