Stop funding coal, green groups tell European Bank

1 October 2013, Business Green

Coalition of 10 of the largest green NGOs want European Bank for Reconstruction and Development to phase out coal, nuclear and shale gas investments

Europe’s largest green NGOs have urged the European Bank for Reconstruction and Development (EBRD) to cease funding fossil fuel developments.

A coalition of 10 campaign groups including WWF, the European Environmental Bureau (EEB), and CAN Europe, known as the Green 10, say the bank should phase out fossil fuels from its lending portfolio, beginning with coal, and rule out lending to risky energy sources, such as nuclear and shale gas.

A consultation on the EBRD’s future energy strategy, which closed yesterday, indicated the EBRD plans to continue lending to fossil fuels and nuclear sectors, and is opening the door to financing shale gas.

The Green 10 group says the negative effects of an over-reliance on fossil fuels for the climate, the environment and human health have been broadly recognised by other institutions and the EBRD should follow the example of the European Investment Bank, which has introduced significant limitations to its coal lending.

It wants the EBRD to bring in strict Emissions Performance Standards for all its energy-related investments, along with a shadow carbon price, and prioritise investments in renewable energy.

Tony Long, of WWF’s European Policy Office, said continuing with coal investments would lock future generations in to the “clean-up costs from a particularly nasty, toxic energy source”.

“It is time for the EBRD to finally say goodbye to old-fashioned coal and say ‘no more’ – once and for all,” he added. “The EBRD must join the growing movement in international development finance led by the World Bank and the European Investment Bank in ending funding for coal projects given their disastrous impacts on climate and health. Clearly the way forward is with renewable energy sources.”