After 2020, European Investment Bank will not fund any more fossil fuel projects
Photograph from @RenewableSearch
It is not only about the extreme temperatures, European countries have also seen an increase in storms and floods linked to the climate crisis, which fossil fuels highly contribute to.
The EIB’s strategy paper laid out its focus on long-term investments that aligns with the Paris agreement, which aims to cap a global rise in temperatures at 1.5 degrees Celsius above 1990 levels. “These types of projects will not be presented for approval to the EIB Board beyond the end of 2020,” said the EIB’s strategy paper, as Reuters reported.
When the calendar turns over to 2021, fossil fuel companies won’t have the European Investment Bank (EIB) to turn to for loans anymore.
Photo from GBRIonline.org
The bank plans to create an energy transitions fund to support projects that will help member states transition to cleaner energy.
The move away from fossil fuels comes after a growing wave of pressure bearing down on financial institutions to cut their ties to projects that increase greenhouse gas emissions.
Environmental activists praised the EIB’s plan.
“The EIB’s proposal to end financing for fossil fuels by 2020 is a massive step forward in climate leadership,” said Alex Doukas, from Oil Change International, as The Guardian reported. “With this move, the world’s largest multilateral lender is now poised to leave oil, gas and coal in the past. The EU member states who control the bank must now stand behind the EIB’s ambitious climate vision, and other financial institutions should quickly follow suit to stop funding fossils.”