NGOs welcome EP call on EIB to phase out fossil fuels lending

Strasbourg — Voting today on the 2009 annual report of the European Investment Bank (EIB), the European Parliament (EP) has called on the bank to “bring its operations fully into line with an EU objective of a swift transition to a low-carbon economy and to adopt a plan for the phase-out of fossil fuel lending.”

Piotr Trzaskowski, CEE Bankwatch Network climate and energy coordinator, commented, “The EP vote today is a clear warning for the EIB, Europes house bank, that it cannot continue to use European public money to finance projects which blatantly contradict the EUs climate objectives.”

“This is a very strong signal from the Parliament. It means the EIB needs to make a radical change in its lending portfolio since fossil fuels currently account for such a large share of the banks lending,” says Counter Balance Coordinator Desislava Stoyanova.

According to Bankwatch research, between 2002 and 2008, fossil fuels accounted for 48 percent of the banks energy lending. (1) This year, while EU leaders strengthened their commitments to reduce GHG emissions by 80-95 percent by 2050 compared to 1990 levels, the EIB lent its first 110 million euros tranche for a new 600 MW block at Sostanj lignite plant in Slovenia. (2) In March, the bank also agreed to loan up to 75 million euros to a new unit at Bielsko-Biaa cogeneration plant in Poland. (3) More investments in Polish coal can be expected this year.

“Fossil fuel infrastructure financed today will last beyond 2050 making the decarbonisation of the EU’s energy sector impossible. An EU public bank should not participate in this shady business,” said Trzaskowski.

“EIB lending needs to be more sustainable not just inside Europe but also outside the EU boundaries,” added Stoyanova. “Thats why we equally welcome the Parliaments call on the bank to focus on investments in renewables in developing countries, particularly in sub-Saharan Africa.”

For more information, contact:

Desislava Stoyanova
Counter Balance Coordinator
desislava AT bankwatch.org
mob: +32 487 617482

Piotr Trzaskowski
Climate and Energy Coordinator
CEE Bankwatch Network
piotr.trzaskowski AT bankwatch.org
mob: +48509162988

Notes for the editors:

(1) https://bankwatch.org/documents/changing_the_climate.pdf

(2) http://www.bloomberg.com/news/2011-02-17/slovenia-sostanj-plant-gets-first-eib-loan-tranche-finance-says.html

(3) http://www.eib.org/projects/pipeline/2009/20090549.htm

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Counter Balance is a European coalition of development and environmental NGOs formed in 2007 to challenge the EIB. Its members are CEE Bankwatch Network (Central and Eastern Europe), Les Amis de la Terre (France), urgewald (Germany), Campagna per la Riforma della Banca Mondiale (Italy), BothEnds (Netherlands), Bretton Woods Project (UK).

http://www.counterbalance-eib.org

CEE Bankwatch Network monitors the social and environmental impacts of EIB lending in Central and Eastern Europe.

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