Positives undermined: the EIB’s lending for renewable energies

Study    |    21 May 2005

Download

This publication explores the EIB’s investments in renewable energy projects, focusing on financing through the intermediary banks via global loans. The EIB’s refusal to provide any exact information on the subject while referring to its disclosure policy, was a driving force behind the survey made by Bankwatch Network and FoEI between January and March 2005. They asked 386 financial intermediaries to provide a list of renewable energy projects financed through the EIB global loan credit line over the period 1999 to 2003. Sporadic reactions from the intermediaries resulted in no evidence about a concrete renewable energy project being financed from the EUR 300 million allocated by the EIB.

It is believed that the EIB’s Information Policy effectively prevents the verification of its lending via global loans – it is beyond public control. Furthermore, some of the ‘renewable energy projects’ financed from the EIBs direct loans are of serious concern in terms of their contribution to sustainable development or environmental and social benefits.