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 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
EBRD: Don’t open pandora’s box with lignite open cast mine in Serbia
Blog entry | 4 July, 2011Before making any decisions on the planned EUR 80 million loan for the Kolubara lignite mine project in Serbia, the European Bank for Reconstruction and Development’s Board of Directors should take note of the controversy the bank will get involved in. Not only are the climate impacts of lignite well known, but the project is also indirectly connected to the resettlement of nearby residents.
Read moreVideo: Polish perspectives on the EU presidency
Blog entry | 1 July, 2011Today Poland takes the helm of the EU presidency, but the country’s recent move to unilaterally block a 25 percent reduction target for EU carbon emissions has solidified expectations that Poland would hinder a more ambitious EU climate policy agenda.
Read morePublic finance for mining must bring more than a mirage of development benefits in Mongolian desert
Press release | 13 June, 2011Ulan Baatar, Mongolia – Civil society groups are demanding that investments from international financial institutions to extract resources in Mongolia’s Gobi Desert guarantee that livelihoods are protected for those living near the mines and profit windfalls are used as an impetus to social and economic development for the region.
Read moreRelated publications
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.
Why the EBRD must end support for primary forest biomass in the Western Balkans
Issue paper | 7 May, 2025 | Download PDFThis issue paper presents case studies from Bosnia and Herzegovina that highlight how EBRD-backed large-scale biomass projects have faced significant challenges related to sustainability, affordability, and fuel supply.
Where vested interests lie: An analysis of Kazakhstan’s coal, oil and gas industries
Report | 26 March, 2025 | Download PDFThis study examines the practical steps Kazakhstan is taking to reduce the production of fossil fuels – specifically oil, gas and coal – in light of its commitment to achieving carbon neutrality by 2060.
