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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We provide updates in English from the Balkans and other coal regions.
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 2024, the plant delivered 4359 GWh of electricity to the grid, around 14 per cent of the country’s coal-based generation.
Latest news
Western Balkans coal plants continue to breach pollution limits despite legal deadlines, report says
Bankwatch in the media | 8 July, 2026Coal-fired power plants across the Western Balkans emitted sulphur dioxide at more than six times legal limits in 2025, with dust pollution reaching its worst level since current emissions rules came into force eight years ago.
Read moreWestern Balkan governments must finally penalise illegal coal pollution – new report
Press release | 22 June, 2026In 2025, systematic law enforcement failures allowed sulphur dioxide (SO2) emissions from the Western Balkans’ ageing coal power plants to exceed legal limits by 6.6 times, according to the eighth edition of Bankwatch’s Comply or Close report, published today (1). Nitrogen oxides (NOx) emissions also continued to breach legal limits, while dust pollution increased, reaching the highest level since the current rules entered force in 2018.
Read moreThe Trump peace pipelines framework: a renewed threat to Western Balkan decarbonisation
Blog entry | 19 June, 2026The Western Balkan countries have low or no fossil gas dependence, but the United States is trying to change this. As a major gas producer, its approach to the region is increasingly clashing with the EU’s decarbonisation agenda, raising the threat of increased import dependence or stranded assets.
Read moreRelated publications
Winners and losers – Who benefits from high-level corruption in the South East Europe energy sector
Study | 24 June, 2014 | Download PDFEnergy is one of the biggest economic sectors in south-eastern Europe and is set to grow even further with the region moving closer to the EU. The region has high potential for energy efficiency and sustainable renewable energy investments. Yet, as this study illustrates with a number of examples, countries have shown little ability to absorb investments at a large scale without systemic corruption and patronage. See also an interactive map with summaries for each case at https://bankwatch.org/SEE-energy-corruption
People power having major impact on Kulczyk’s coal power plans
Bankwatch Mail | 14 May, 2014 |Local community and NGO pressure has been making things rather difficult of late for the largest planned new coal-fired power plant in Europe.
New online toolkit to tackle the Kings of Coal in south east Europe and Turkey
Bankwatch Mail | 14 May, 2014 |Last year saw international financial institutions such as the European Investment Bank, the European Bank for Reconstruction and Development and the World Bank falling like dominoes one after the other and announcing in rapid succession that they will halt – almost totally – financing for new coal power plants. These banks were also joined by other institutions such as the US Exim Bank and the Nordic Investment Bank, and governments including the US, UK, Netherlands and Scandinavian countries.
