On February 25, a coalition of international CSO’s sent a joint letter to Werner Hoyer, President of the EIB.
The letter, sent by Counter Balance and 12 other international CSO’s, clarifies to the President the major risk factors involved in the recently approved Energy Lending Policy.
These loopholes could undermine the ELP as a whole. There are in total three risk factors involved in this policy.
- Projects from the 4th PCI list can still be approved by the end of 2021. This list is heavily shaped by the gas lobby and contains over 50 new fossil gas projects.
- The policy allows for the financing of gas infrastructure for non-fossil gas, however it does not specify what kind of gas infrastructure projects can be financed. The lack of detailed conditions may lead to new infrastructure for highly-polluting fossil gas.
- The policy allows financing for projects emitting fewer than 250g CO2/Kwh, an extremely high threshold that has no scientific basis. The EU sustainable finance taxonomy set a threshold of 100g CO2/Kwh.
Citizens demand climate actions and the EIB is rightfully applauded for its commitment. However, in practice these issues pose a real threat to the EU achieving the Paris Agreement objectives.