European Investment Bank (EIB) cut lending to fossil plants, supports renewables

London-the European Investment Bank (EIB), the world's largest public financial institution, has announced that effective immediately, it no longer the most coal, brown coal and oil fired power plants in Europe its climate targets to meet as an aid for finance is.

The announcement comes on the heels of a similar announcement by the World Bank, which has said, that it support "only in rare cases." will power plants in the developing world for coal

At a meeting this week that the EIB Board of Directors agreed to introduce an emissions performance standard (EPS) for energy projects, investments in power plants for fossil fuels, which have not implemented the emission technologies, which is effectively blocked the emitting more than 550 g/CO2 per kWh, screen. Coal plants get more funding, if with carbon capture and storage (CCS) and power (CHP) or cogeneration, biomass co-fire technology in place.

The Board said that the standards, after an eight-month consultation over 80 industry associations, national committees and individual companies, are designed to strengthen support for investments in renewable energy and energy efficiency in Europe. Richard Willis, press officer of the EIB said REW, that the move "our ongoing focus towards renewable energies opens so far and reflects how we see our primary focus on investments in the coming years." Green as the WWF welcomed said the step but it does not go far enough, and some Member States had reportedly urged groups, the more stringent standards will be implemented immediately.

"In determining at what level the EPS set we nature of emissions across a range of technologies saw,", said Willis. "We have set a standard unanimously by all Member States which reflects current policy but the guidelines no longer still because we were asked that we review and consider also the exceptions that are in place to ensure we concentrate primarily on networks, renewable energy and energy efficiency."

Two exceptions to the standard, which it more financing for coal-fired plants, to the security of supply or allow "contribute to the alleviation of poverty and economic development", contribute in other regions of Europe, have been marked by green groups.

"We decided that the total new guidelines would be considered in the autumn of next year – this is normal that every initiative, which committed the Bank," said Willis. "We look to see if the level the difference between projects continue to the 550 g figure reflected, or whether technology improves, so we had a lower number, the more [] emission reduction and biomass investment would allow." He also speculated that "much stronger set" climate goals the next year's European elections most could follow the time ", which would be taken into account."

A number of Member States have highlighted the continuing importance of the gas as a transitional technology to a low-carbon economy, and the EIB said Willis recognizes this, although he didn't say what specific measures have been taken. But he said, "really, our main focus is for 90 per cent of our future commitments are in the areas of renewable energy, energy efficiency and grid networks to ensure that renewable energy can have an important role in Europe's energy mix." Investments in the network infrastructure is crucial, he said, and "no single Government or institution, who pay for it can alone; Companies are stretched. We can play a role as an important source of funding and a supporting role in providing technical assistance. As co-financier, we support about one-third of project funding on average, but can we contribute up to 50 percent, we can help, in other financial sources, often from other banks to bring, which is not such a big focus and exposure to renewable energy but are happy, with other much-needed capital for long-term investments to work."

Earlier this week signed a financing bank with Dutch grid operator TenneT for new grid infrastructure, linking the North Sea to Northern Germany and today the Bank and Spanish utility Iberdrola signed a loan agreement for €200 milliion for promoting the modernisation of the electricity network in Spain. Such net investment "is key to the use of not only existing investments in renewable energies, but also new investment as it comes forward", said Willis.

I am delighted, he concluded that "with regard to renewable energy, we realize that on a snapshot from year to year based on investment in the face of the different energy markets and regime varies. We are closely related to most of the larger projects but also always on the lookout for ways to work through intermediary banks to support smaller systems. We have a continuing role in other sources of financial support renewable energy: banks that can't our commitment on renewable energy to engage. We see this in major projects in the North Sea and in sub-Saharan Africa and elsewhere."

View the original article here