European Investment Bank proposes end to fossil fuel lending
The European Investment Bank wants to stop funding new fossil fuel-reliant projects by the end of 2020, a draft of the EU lending arm’s new energy strategy showed.
The development bank proposed phasing out support to energy projects that were “reliant on fossil fuels: oil and gas production, infrastructure primarily dedicated to natural gas, power generation or heat-based on fossil fuels".
“These types of projects will not be presented for approval to the EIB Board beyond the end of 2020,” the proposals said.
The EIB board, which is made up mostly of EU finance ministers, is expected to discuss the proposals at a meeting in September, though a final decision could take longer.
Resistance could potentially come from coal-reliant eastern European Union members or countries such as Italy where the EIB is helping fund the Trans-Adriatic Pipeline for gas.
The EIB estimates that under 5% of its lending currently goes on fossil fuel projects. According to non-governmental group CEE Bankwatch Network it spent €12 billion euros ($13 billion) in the area between 2013 and 2017.
