On 14th November, the European Investment Bank (EIB) Board adopted the new energy lending policy which increased the ambition in climate action and environmental sustainability. The European Commission supports an increase of low carbon energy financing and believes that this will contribute to the phasing out of support for fossil fuels project, including natural gas.
One of the key elements that are addressed:
- The end of financing the fossil fuel energy projects from the end of 2021 onwards.
- EIB will unlock 1 trillion EUR of climate action and environmentally sustainable investment in the decade to 2030 (from 2021 to 2030).
- All new financing activities by EIB will need to fulfil the goals of the Paris Agreement from the end of 2020 onwards.
Until now and over the past five years, EIB financed more than 65 billion euros for renewable energy, energy efficiency and energy distribution. As from the end of 2021 onwards, the new energy lending policy aims to no longer consider the financing for fossil fuel energy projects, including gas. Additionally, the Bank also set a new Emission Performance Standard of 250g of CO2 per Kilowatt/hour (KwH). This will replace the current 550gCO2/KwH standard. Read more about this climate strategy and energy lending policy by EIB publication here.
According to the Commission, the final approval by EIB Board of Directors on this energy lending policy is crucial in the transition period and to support newest technologies to tackle the phase-out of gas projects, reducing CO2 and other projects. See the full Commission’s position here.