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
Kostolac B3 power plant, Serbia
As of January 2024, Serbia’s state-owned utility Elektroprivreda Srbije is about to start operating a new 350 MW lignite plant at Kostolac in the country’s north-east. The project is receiving high level support and Chinese financing, but is plagued by concerns over its economics, pollution and legal irregularities.
Kosova e Re lignite power plant, Kosovo
CANCELLED: For more than a decade, successive Kosovo governments planned to build a new 500 MW lignite plant (around 450 MW net), Kosova e Re or New Kosovo. The controversial project was finally cancelled in 2020 after concession-holder ContourGlobal pulled out.
Plomin coal power plant, Croatia
CANCELLED: after five years of campaigning, plans for Plomin C were dropped in 2016. Croatian plans to more than double the capacity of the Plomin coal power plant would have resulted in increased carbon-emissions for several decades. The project’s profitability was questionable and the plans were facing local opposition and conflicting regional legislation.
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
Cleaning up District Heating: Best technologies and real-life examples
Brochure | 18 April, 2024 | Download PDFIntended for practitioners, policymakers, civil society and the energy sector, this brochure reviews various public financing options that can help enable the transition to clean district heating.
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.