The European Investment Bank (EIB) has revealed plans to stop the funding of oil, gas and coal projects. This will take effect at the end of 2021.
If this is taken into consideration, it will translate to cutting of €2 billion of yearly investments.
According to the bank, the new energy lending policy will bar most fossil fuel projects, including traditional use of natural gas.
Gas projects are still viable but would have to be based on what the bank called “new technologies” such as carbon capture and storage, combining heat and power generation, or mixing in renewable gases with the fossil natural gas.
Under the new policy, energy projects applying for EIB funding will need to show they can produce one-kilowatt hour of energy while emitting less than 250 grams of carbon dioxide, a move which excludes traditional gas-burning power plants.
Since 2013, the EIB has funded €13.4bn of fossil fuel projects.
The European Investment Bank is the European Union’s non-profit long-term lending institution. It is a publicly owned international financial institution and its shareholders are the EU member states. It is also the world’s largest international public lending institution.
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