The European Investment Bank (EIB) has pledged to end financing for fossil fuel energy projects from the end of 2021 after setting out a new energy lending policy.
On 14 November, the EIB noted future engagement with the energy sector will be governed by five principles under the new policy, including prioritising energy efficiency; enabling energy decarbonisation through increased support for low or zero carbon technology; and increasing financing for decentralised energy production, innovative energy storage and e-mobility. Future EIB financing will also look to ensure grid investment essential for new, intermittent energy sources such as wind and solar and strengthen cross-border interconnections, as well as increasing the impact of investment to support energy transformation outside of the EU.
The EIB is aiming to unlock $1tn of climate action and environmentally sustainable investment in the decade to 2030 and will also align all financing activities with the aims of the Paris Agreement by the end of 2020.
From the end of 2021 onwards, financing for unabated, fossil fuel energy projects – including gas – will no longer be considered. The EIB has also set a new Emissions Performance Standard of 250g of CO2 per kWh, replacing the current 550g standard.