Fossil fuels are fast losing their social license. It is becoming increasingly evident that countries’ continued reliance on dirty hydrocarbons escalates the climate crisis, worsens air pollution and enables war.
Long touted as a ‘bridge fuel,’ fossil gas now needs to be recognised by policymakers for the hurdle to the energy transition that it is, and multilateral development banks should urgently end support for gas projects and gas-dependent companies.
The energy transition has to be just and fast, with citizens, municipalities and workers as critical participants in the process. We are working to ensure no more public money is spent on coal, and public finance is used to accelerate this transition.
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IN FOCUS
Fossil gas
Fossil gas is the new coal. Although often labelled ‘natural,’ fossil gas is a major driver of the climate crisis. There is no more room for new investments in fossil gas projects if we are to avert the worst impacts of the climate crisis and set a path towards decarbonisation.
District heating
District heating and individual heating are still dominated by fossil fuels and inefficient burning of wood without regard to sustainability criteria, in combination with a low degree of energy efficiency. This has to change, since heating plays a crucial role in the transition into a clean and zero-carbon economy.
Just transition
No one should be left behind when we reconstruct our world into one driven by clean energy. Working on just transition brings all actors who believe in fair regional redevelopment to the same table: unions, industry, public administration, governments, civil society and others sharing this goal.
Modernisation fund
The Modernisation Fund can make a big difference. Redirecting future spending away from polluting energy sources while increasing support for sustainable energy investments would help Europe reduce emissions, slash air pollution, cut energy bills, improve energy security, and end the EU’s dependence on authoritarian regimes. To realise its potential, the Modernisation Fund needs to reform.
But will the EU seize the opportunity or leave its citizens to suffer the consequences?
Documentary: Turning the Tide
Our documentary exposes, for the first time, the extent of financial support four of the world’s leading multilateral development banks (MDBs) – the World Bank, the European Investment Bank, the Asian Development Bank and the European Bank for Reconstruction and Development – have been providing to the global fossil fuels industry over the past 13 years.
Our analysis shows that since 2008, the oil, coal and gas business has been enjoying no less than EUR 81.5 billion in support from these government-owned financial institutions in the form of loans, grants, credit lines and guarantees.
Coal projects
Ugljevik power plant, Bosnia and Herzegovina
Commissioned in 1985, the 300 MW coal power plant in Ugljevik, Bosnia and Herzegovina, has become famous for emitting more sulphur dioxide than all of Germany’s coal power plants in 2019.
Pljevlja I power plant, Montenegro
The existing 225 MW Pljevlja thermal power plant in the north of Montenegro, near the borders with Serbia and Bosnia-Herzegovina, has been operating since 1982. The plant was originally planned to comprise two units but the second one was never built. The plant, along with the extensive use of coal and wood for heating, has caused unbearably bad air quality in the town.
Kostolac B power plant (B1, B2), Serbia
The Kostolac B power plant, consisting of 2 units of 350 MW each, first started operating in 1987. In 2023, the plant delivered 4445 GWh of electricity to the grid, nearly 20 per cent of the country’s coal-based generation.
Latest news
European Commission fuels hydrogen fantasies – but MEPs can still halt the next array of fossil fuel follies
Press release | 1 December, 2025A bill tabled today by the European Commission foresees a massive build-up of hydrogen projects, despite growing expert consensus that hydrogen can only thwart Europe’s decarbonisation efforts.
Read moreSofia’s burned lesson: Why the Western Balkans must ditch waste incineration
Blog entry | 25 November, 2025While Western Balkan governments scramble to solve their energy and waste crises by turning to incineration, a clear lesson is emerging from the EU: burning waste is a dead end.
Read moreWith a revised Action Plan, is the Green Agenda for the Western Balkans finally on track?
Blog entry | 6 November, 2025The European Commission launched the Green Agenda for the Western Balkans in 2020. But five years later, progress is limited. In mid-October, an updated Action Plan was endorsed by Western Balkan leaders. Here we look at whether civil society proposals were taken into account and whether the revised plan can inject new dynamism into the process.
Read moreRelated publications
Joint NGO statement on the future of the Instrument for Pre-accession Assistance (IPA) in the post-2027 EU budget
Joint statement | 28 May, 2025 | Download PDFThis joint statement signed by 68 civil society organisations calls on the EU to ensure dedicated funds for environmental protection and just transition of coal-dependent regions in the Western Balkans
GET greener: Strengthening the EBRD’s Green Economy Transition approach
Issue paper | 26 May, 2025 | Download PDFThe EBRD’s review of its GET approach should help to build an increased consensus on what investments can be considered ‘green’. This issue paper presents the key points from our extensive comments submitted to the EBRD in early April 2025.
Keeping the flame alive with emission revenues: How the EU Modernisation Fund props up fossil gas and waste incineration
Report | 8 May, 2025 | Download PDFIn operation since 2021, the Modernisation Fund was designed to channel EU emission trading revenues into investments in the energy transition in 13 lower-income Member States.
