The European Investment Bank (EIB) has unveiled its new climate strategy and energy lending policy and decided to stop financing unabated fossil fuel projects (including gas) from the end of 2021, i.e. one year after the initial proposed date. The EIB will set a new Emissions Performance Standard (EPS) of 250gCO2/kWh (instead of the current 550gCO2/kWh standard), in order to counter the rising trend in CO2 emissions. The bank had been using an EPS to end financing for coal and lignite power generation since 2013. The new EPS will exclude traditional gas-fired power projects, unless they include carbon capture and storage (CCS), CHP or co-firing of renewable gases.
In addition, the EIB will support €1,000bn of investments in climate action and environmental sustainability from 2021 to 2030. It will gradually raise the share of its financing dedicated to climate action and environmental sustainability to reach 50% of its operations from 2025 and will align its financing activities with the goals of the Paris Agreement by the end of 2020. More specifically, it will focus on energy efficiency projects, to support the new EU target under the EU Energy Efficiency Directive. The EIB will increase support for low or zero carbon technology, aiming to meet a 32% renewable energy share throughout the EU by 2030, and will increase financing for decentralised energy production, innovative energy storage and e-mobility. Moreover, it will seek to boost investments in power grids to better integrate new, intermittent renewable energy sources (wind and solar) and to strengthen cross-border interconnections. Finally, it aims at increasing the impact of investment to support energy transformation outside the European Union.
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