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
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 entered into operation in 1987. In 2021, the plant delivered 4,320 GWh of electricity to the grid, nearly 20 per cent of the country’s coal-based generation.
Latest news
EBRD gives up Kolubara B lignite power plant project in Serbia
Press release | 9 September, 2013Subotica, Serbia — The European Bank for Reconstruction and Development (EBRD) confirmed Friday September 6 that it is no longer interested in financing the 750 MW Kolubara B lignite power plant project near Belgrade in Serbia. The project is proposed by Serbian electricity company Elektroprivreda Srbija, with Italy’s Edison as a strategic partner.
Read moreEnergy consultations reveal lack of strategic thinking at the EBRD
Blog entry | 6 September, 2013With another public action, colleagues in Moscow are today bringing to a close a week that has seen the European Bank for Reconstruction and Development having to listen to a lot of uncomfortable truths.
Read moreReality, climate change and global attention is catching up on the ‘sustainable energy’ bank (EBRD)
Blog entry | 28 August, 2013As part of the consultation on its energy sector strategy the EBRD next week hosts public meetings in Istanbul, Belgrade and Moscow to discuss with civil society from its countries of operation. While public pressure is increasing to end coal financing it is important to note that restrictions to carbon-intensive investments must be strictly and clearly defined in the strategy document if they are to improve the EBRD’s climate impact. An article from Bankwatch’s 2012 annual report (pdf) illustrates how a too flexible approach allows the EBRD to greenwash also very dirty investments.
Read moreRelated publications
Energy insecurity: EU funds for fossil gas in Poland and Romania contradict climate goals
Report | 6 June, 2023 | Download PDFThis report reveals how much EU public money has been channelled toward the expansion of fossil gas infrastructure in Poland and Romania since 2014 as well as what plans these two countries have for using various EU funding sources to finance additional fossil gas projects in coming years.
Joint civil society letter: Creating a truly Paris-aligned EIB
Advocacy letter | 2 May, 2023 | Download PDFThe Fossil Free EIB coalition wrote a joint letter to the European Investment Bank (EIB) to express its views on the upcoming review of the EIB Climate Bank Roadmap.
LNG rush threatens Baltic energy transition: why new LNG infrastructure is a false solution for energy security in the Baltics
Briefing | 14 March, 2023 | Download PDFAs a result of Russia’s war in Ukraine, the Baltic states and Finland, which had relied on Russia for fossil gas imports, now lack sufficient alternative infrastructure to cover regional demand. The main efforts to diversify gas sources and reduce regi
