BAKU, Azerbaijan, Nov.18
By Leman Zeynalova – Trend:
The European Investment Bank’s decision to stop the financing of fossil fuel energy projects, which includes natural gas, stands in conflict with its parallel commitment to align financing activities with the goals of the UN Sustainable Development Goals, Trend reports citing the International Gas Union (IGU).
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.
“Natural gas is an essential component of the global energy mix if there is any hope of meeting the Sustainable Development Goals. It is the most flexible, abundant, and available fuel, that offers an immediate reduction in GHG emissions from higher emitting fuels that are widely burned, guarantees reliability and security of energy systems, and eliminates air pollution, all while enabling the world to lift communities out of poverty and supply safe and modern energy to where it is still in deficit,” said IGU.
The organization believes that natural gas is ideally suited to supply energy to all key sectors in an economic and reliable way.
“It is a highly efficient energy source that can be used across the global economy: to generate electricity, energize essential industrial processes, heat homes and provide clean cooking and fuel transport. Furthermore, natural gas can be a practically emission-free fuel: paired with carbon capture and storage technologies, which remove 90 percent of the emissions, and supplemented by renewable gases which can address the remaining 10 percent, the picture on emissions is an incredibly positive one,” said IGU.
The EIB decision will have the effect of taking all of this promise off the table for many jurisdictions around the world – where there are millions of people who need more energy to fuel their economies and improve their quality of life, the organization believes.
The IGU expresses its strong opposition and concern to the EIB decision, as we believe that prudent policy-making should be based on effective performance objectives and guided by desired outcomes, instead of picking technologies and prematurely choosing winners and losers.
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