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
Western Balkan governments still complicit in deadly coal pollution – new report
Press release | 17 June, 2025In 2024, Western Balkan governments’ chronic law enforcement failures allowed sulphur dioxide (SO2) pollution from the region’s antiquated coal power plants to exceed legal limits by six times, according to the seventh edition of Bankwatch’s Comply or Close report, published today (1). Dust and nitrogen oxides (NOx) pollution from coal plants also continued to exceed legal limits.
Read moreEnvironmental groups once again call on KfW to stop funding biomass plants in Serbia
Press release | 5 June, 2025Four environmental NGOs have today written to KfW Directors [1], calling once again for an end to ongoing funding for biomass heat and power plants in Serbia, and demanding answers to previously raised concerns that campaigners say KfW evaded in a previous response. The letter follows a visit to Novi Pazar biomass plant which KfW helped fund by representatives of CEE Bankwatch and Earth Thrive.
Read moreJoint NGO statement: New EU budget must ensure dedicated funds for environmental protection and just transition in the Western Balkans
Press release | 28 May, 202568 civil society organisations have today issued a joint statement calling on the EU to ensure dedicated funds for environmental protection and just transition of coal-dependent regions in the Western Balkans in the post-2027 EU budget.
Read moreRelated publications
A critical examination of the investment proposals for Unit 6 of the Sostanj power plant
Study | 28 November, 2011 | Download PDFFour investment plans have been produced for the Sostanj lignite fired power plant in Slovenia with many differences in calculations and outcomes. This review of the latest investment plan illustrates a number of shortcomings including both methodological mistakes and unsubstantiated claims.
EBRD support for Kolubara paving the “ash way” for development of Serbia
Briefing | 21 November, 2011 | Download PDFLinked to a slew of controversies, the Kolubara lignite mining project in Serbia is in line for support from European public banks. Corruption allegations, pollution at local level, irregularities in resettlement of local populations and not to forget a climate damaging approach to energy investments should be reason enough to find alternative options. An updated version of this briefing is available here (May 12, 2012).
Sostanj power plant in Slovenia: Against EU laws and policies
Briefing | 21 November, 2011 | Download PDFThe project is a plan to construct a sixth unit at the Sostanj lignite-fired power plant in Slovenia. It has received significant backing from European public banks adding up to more than 50% of the overall costs of the investment. Doubts about the economic viability of the project, alleged irregularities in the tendering procedure and its climate impact caused strong opposition to the project within Slovenia. A recent study conducted by an independent consultant as well as two complaints submitted to the European Commission by NGOs bring new arguments against TES 6.
