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
European Commission urged to act on destructive hydropower projects in Romanian protected areas
Press release | 11 May, 2023Bankwatch Romania today submitted a complaint to the European Commission, seeking to reverse an Emergency Ordinance of the Romanian Government, which greenlights nine destructive hydropower projects (1) and is considered to breach three European Union Directives.
Read more‘EU climate bank’ keeps back door open for fossil fuel giants
Blog entry | 2 May, 2023The European Investment Bank (EIB) made history with its decision to stop financing fossil fuel energy from 2022 onwards. By adopting the PATH Framework in October 2021, it seemed the EIB had finally set the conditions requiring its clients to disclose information on their corporate-level emissions, as well as decarbonisation plans. But a year later, it made a U-turn.
Read moreLatvia abandons plans for controversial LNG terminal but still needs to ditch fossil gas
Press release | 12 April, 2023Latvia’s government announced yesterday (11 April) it is terminating plans for a liquified fossil gas (commonly termed liquified natural gas or LNG) terminal in Skulte.
Read moreRelated publications
EU ETS 101 A beginner’s guide to the EU’s Emissions Trading System
Guide | 27 April, 2022 | Download PDFThe guide is a product of the Life ETX project, led by Carbon Market Watch, and has received funding from the LIFE programme of the European Union.
How can the EIB and the EU financial mechanisms support the decarbonisation of district heating?: Exemplary cases in central and eastern Europe
Briefing | 27 April, 2022 | Download PDFThe heating and cooling sector accounts for half of the EU’s energy consumption, and both district heating and individual heating are still dominated by fossil fuels and inefficiently burned biomass. According to Eurostat data, only 22 per cent of heating and cooling is generated from renewable energy. Decarbonisation of this sector, through increasing its efficiency and use of renewable energy sources, is key to the success of the EU’s climate neutrality strategy.
Air pollution and associated health impacts in Novaci, North Macedonia
Report | 6 April, 2022 | Download PDFFor the last forty years, the municipality of Novaci has been home to North Macedonia’s REK Bitola complex, which consists of a 675 MW lignite power plant, open-cast mines and ash disposal sites. Its inhabitants have been breathing pollution emitted at
