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.
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
Pljevlja II lignite power plant, Montenegro
CANCELLED: For several years the Montenegrin authorities planned a second unit at the Pljevlja lignite-fired power plant in the north of Montenegro, near the borders with Serbia and Bosnia-Herzegovina. An existing plant has been operating there since 1982. In 2019 the authorities finally admitted the second unit would not be built.
Tuzla 7 lignite power plant, Bosnia and Herzegovina
The 450 MW Tuzla 7 project has become an iconic example of the clash between Chinese-backed investments and EU standards in the Balkans. The lead contractor would be the China Gezhouba Group Co. and a financing deal was signed with the China ExIm Bank in November 2017. However, in December 2023, the Federation of BiH’s Prime Minister confirmed that the plant will not go ahead. The cancellation of the works contract is still pending, however.
Banovici lignite power plant, Bosnia and Herzegovina
The 350 MW Banovići coal power plant project was planned alongside the existing Banovići mine just a few kilometres away from Tuzla by the predominantly state-owned RMU Banovići (Banovići Brown Coal Mines).
Latest news
NGOs request investigation into EBRD loan for North Macedonia mega gas pipeline
Press release | 25 March, 2024Environmental watchdogs CEE Bankwatch Network and Eko-svest have today asked the European Bank for Reconstruction and Development’s (EBRD) redress mechanism to investigate a planned loan for a major new fossil gas pipeline from Greece to North Macedonia.
Read moreBar’s battle: Montenegrin town rising against LNG project
Blog entry | 5 March, 2024Plans to build a fossil gas import terminal on Montenegro’s coast, with backing from the European Commission, endanger the country’s fossil fuel phaseout. Growing local opposition to the project also underlines poor public participation in the process.
Read moreNew study offers reality check on fossil gas in North Macedonia
Blog entry | 30 January, 2024North Macedonia has ever-more-ambitious plans to increase the use of fossil gas. But these were developed before the recent energy crisis. In addition to the climate havoc, import dependence and fossil-fuel lock-in wrought by gas, a new study shows that pipeline construction costs have increased, high household gasification rates are unlikely, and significant household solar, heat pumps or retrofits could be financed instead.
Read moreRelated publications
The Modernisation Fund: An open door for fossil gas in Romania
Report | 26 March, 2024 | Download PDFThe Modernisation Fund is supposed to channel revenues from the EU’s carbon market into the energy transition in central and eastern Europe. But it’s actually being used to further deepen the region’s dependence on fossil gas.
The great energy trap: An evaluation of the economic viability of replacing coal with gas in large power plants in Bulgaria
Report | 14 March, 2024 | Download PDFThis report analyses several scenarios for replacing the existing coal capacity at Maritsa East and Bobov Dol with new gas-fired units. It looks at the implications of these projects becoming financially viable, including the investments required, possible state aid, and the electricity costs for households.
The EU’s proposed Reform and Growth Facility for the Western Balkans
Briefing | 7 March, 2024 | Download PDFThis briefing provides key recommendations to define clearer and narrower goals for the Reform and Growth Facility for the Western Balkans, focusing on social and/or environmental goals.