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 2022, the plant delivered 4388 GWh of electricity to the grid, nearly 20 per cent of the country’s coal-based generation.
Latest news
Against all logic, Bosnia and Herzegovina’s Federal government ramps up fossil gas ambitions
Blog entry | 14 January, 2025Fossil gas makes up less than three per cent of total energy supply in Bosnia and Herzegovina (BiH), but instead of making use of the opportunity to leapfrog straight from coal to renewables, the Federation of BiH (FBiH) government is inexplicably expanding its gasification ambitions.
Read moreEU’s Modernisation Fund continues to fund fossil fuels and waste incineration projects, undermining climate and environmental goals
Press release | 20 December, 2024The European Commission yesterday announced the disbursement of EUR 2.7 billion from the EU Modernisation Fund to support 39 investment projects across eight Member States. However, CEE Bankwatch Network’s analysis shows that a significant portion of this funding is being disbursed to projects that contradict the EU’s climate and energy targets for 2030.
Read moreBosnia and Herzegovina southern gas interconnector: ‘Why gas at all?’ should be the key question
Blog entry | 18 December, 2024The long-running controversy about the planned southern gas interconnector between Croatia and Bosnia and Herzegovina (BiH) has dramatically reignited this month. After fervent lobbying by the US Ambassador to BiH, a special law on the project was adopted by the first of two houses of the Federation of BiH entity parliament on 12 December. But political controversies have monopolized the debate, with hardly a word on its energy, economic or climate implications.
Read moreRelated publications
Letter to DG Environment: Flaws in Environmental Impact Assessment of the Oyu Tolgoi mine in Mongolia
Advocacy letter | 25 September, 2012 | Download PDFThe Environmental and Social Impact Asessment (ESIA) for the Oyu Tolgoi mine in Mongolia has been delayed for years and comes at a time when the commercial operations are soon to begin. By including only the construction phase of the mine, the impacts of its actual operations are neglected with potentially devastating impacts on water reserves in the Gobi desert – especially because the interrelation of the deep (fossil water) and shallow aquifers that are used by herders has not been thoroughly assessed and is based only on modelling and assumptions with no monitoring data publicly available.
EBRD investments in Mongolia’s mining sector
Briefing | 19 September, 2012 | Download PDFInternational mining companies and financial institutions want to help transform Mongolia into a modern mining nation. To realise this plan they are banking on the vast coal, copper and gold deposits in the Gobi desert. This paper examines the environmental and social risks connected to this approach and offers suggestions for the EBRD’s engagement in the country. Read more on our blog
Letter to EBRD: Potential ENEA loan is connected to corruption allegations and a coal power plant
Advocacy letter | 13 September, 2012 | Download PDFThe letter describes the controversies connected to a potential EBRD loan to Polish energy company ENEA. (Find more information on our blog.)
