European Investment Bank to stop Fossil Fuel Funding by 2021
The European Investment Bank is to stop funding oil and coal projects at the end of 2021. Since 2013, the European Union through the bank has funded 13.4 billion Euros for fossil fuel projects. In 2018, it was around 2 billion Euros. The Union has been reducing its funding to fossil fuel projects and is stopping by 2021.
- The EIB’s new policy demands that the energy projects applying for funding must prove that they can produce 1 Kilo watt hour of energy emitting less than 250 grams of carbon dioxide.
- The new rules being adopted are not applicable to gas-based energy projects. However, gas projects should be based on the norms set by the bank for “new technologies”. The “new technologies” include carbon capture, combining heat and power generation, mixing in renewable gases with fossil fuels, etc.
- The exemptions are made on gas projects as they are common in the EU member states. For the next 5 years, EU has over 200 billion USD worth projects planned.
EU aims to become first carbon-neutral continent by 2050.