EIB to end financing for fossil fuel energy projects from late 2021
BAKU, Azerbaijan, Nov.15
By Leman Zeynalova – Trend:
The board of the European Investment Bank (EIB) has agreed a new energy lending policy and confirmed the EIB’s increased ambition in climate action and environmental sustainability, Trend reports with reference to the organization.
“The EIB will end financing for fossil fuel energy projects from the end of 2021. Future financing will accelerate clean energy innovation, energy efficiency and renewables. EIB Group financing will unlock 1 trillion euros of climate action and environmental sustainable investment in the decade to 2030. EIB Group will align all financing activities with the goals of the Paris Agreement from the end of 2020,” reads a message from EIB.
The new energy lending policy details five principles that will govern future EIB engagement in the energy sector:
prioritising energy efficiency with a view to supporting the new EU target under the EU Energy Efficiency Directive
enabling energy decarbonisation through increased support for low or zero carbon technology, aiming to meet a 32 percent renewable energy share throughout the EU by 2030
increasing financing for decentralised energy production, innovative energy storage and e-mobility
ensuring grid investment essential for new, intermittent energy sources like wind and solar as well as strengthening cross-border interconnections
increasing the impact of investment to support energy transformation outside
The European Commission supported the new energy lending policy of the EIB Group, which will help the Bank achieve full alignment with the Paris Agreement. The Commission voted in favour of the proposal.
The Commission believes that the clean energy transition should be gradual, socially fair, based on a broad range of energy sources and technologies and done in a way that no region is left behind.
The Commission supports an increase of low carbon energy financing, which will also lead to a gradual phase-out of support for fossil fuel projects, including natural gas.
The EU is strongly committed to reducing its greenhouse gas emissions that cause climate change. The EU has adopted the most advanced legislative framework to meet its 2030 energy and climate targets. The Commission's long-term commitment to the fully decarbonised energy system is embedded in its 2050 strategy.
Eurogas Secretary General, James Watson, stated that the Bank’s new lending rules will support the deployment of carbon capture and storage (CCS), power-to-gas, hydrogen and biogas.
“Investments in the gas infrastructure will deliver these technologies that all support the achievement of the 2050 carbon neutrality target,” he said.
“The European Institutions and the Member States now have to follow this example and really deliver on the opportunity. Clearly the best way to underline the need for these new gas technologies would be to introduce EU-wide binding targets for renewable and decarbonised gas, such as countries like France have done with a 10 percent target for renewable gas by 2030. This is now a time for action and delivery,” added Watson.
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