The European Investment Bank is planning to completely end its multibillion euro financing for fossil fuel projects by the end of next year. This will be done to align its financing strategy with climate targets that the EU as a whole is pursuing. Plans have been drafted by the EU’s lending arm which proposes cutting support for energy projects which rely on fossil fuels. It has a history of funding fossil fuels projects which include oil storage facilities in Cyprus and the Trans Adriatic gas pipeline.
The Guardian has seen the plans which call for completely ending support for energy infrastructure projects that use oil, gas or coal. This will be done by barring companies from applying for loans after the end of next year.
The EIB will now focus on long-term investments in the energy section that aligns with the Paris Agreement that seeks to put a cap on global heating at 1.5C above 1990 levels by significantly reducing greenhouse gas emissions. “This transition will be profound. Solidarity is required to ensure that potentially vulnerable groups or regions are supported,” the EIB report adds.
It will set up an energy transitions fund which is going to support projects that provide assistance to EU member states as they transition to cleaner sources of energy.
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