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EIB’s energy efficiency investments constituted more 50% of all energy lending

Oil&Gas Materials 2 March 2021 10:10 (UTC +04:00)
EIB’s energy efficiency investments constituted more 50% of all energy lending

BAKU, Azerbaijan, March 2

By Leman Zeynalova – Trend:

The European Investment Bank (EIB) made around 90 percent of its investments in energy into renewables, electricity grids and energy efficiency in the last five years, the EIB told Trend.

“Over the last five years, out of a total 60 billion euro investment in the energy sector, 53 billion euro, almost 90 percent, went into renewables, electricity grids and especially energy efficiency investments,” said the Bank.

In 2020, energy efficiency investments (5.8 billion euro) constituted more than half of all energy lending, according to EIB.

In line with its new energy lending policy, the EIB will no longer consider new financing for unabated, fossil fuel energy projects, including natural gas. With this decision, the EIB has become the first international finance institution to end financing for fossil fuel projects and to focus its support on projects that are fully aligned with the Paris Agreement.

In 2020, EIB loans helped to construct approximately 29 113 km of power lines and generate 10 102 MW of electricity, of which more than 83 percent was produced by renewable energy sources.

Investment in energy efficiency, especially in residential buildings, must double in volume during the coming decade. Despite numerous policy measures, a persistent investment gap remains. Given the pressing need to accelerate market uptake for energy efficiency measures, the EIB will consider financing up to 75 percent of a project’s costs. In cooperation with the European Commission, the Bank will set up a European Initiative for Building Renovation (EIB-R) to support new ways of financing building rehabilitation.

Decarbonising energy supply The European Union must more than double its renewable energy capacity to decarbonise its energy supply and meet its 2030 renewable targets. The EIB, working with the European Commission and other partners, will support the market integration of renewable electricity projects and promote increased regional cooperation. It will also back other types of renewables, including renewable heating, the production and integration of low-carbon gases such as hydrogen, and low-carbon fuels.

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Follow the author on Twitter: @Lyaman_Zeyn

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