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EU: European Investment Bank plans to cut all fossil fuel funding

 |  July 29, 2019

The European Investment Bank’s (EIB) board of directors will vote on halting lending for fossil fuel-based projects “by the end of 2020.”

The possible shift would support the EU’s climate action commitments under the Paris agreement and free up EIB funds to invest more in renewable energy and energy efficiency initiatives.

If the draft “EIB energy lending policy,” released on July 26 is approved, then “…the Bank will phase out support to energy projects reliant on fossil fuels: oil and gas production, infrastructure primarily dedicated to natural gas, power generation or heat based on fossil fuels. These types of projects will not be presented for approval to the EIB Board beyond the end of 2020. While it fully understands the role fossil fuels will continue to play within EU energy systems for at least the coming decade, the Bank provides higher additionality by focusing on the longer-term challenge and investment needs of the energy sector. As a result, all the Bank’s activities in the energy sector will be fully aligned with the Paris Agreement.”

Full Content: Financial Times, EIB

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