The European Investment Bank says it will refuse to fund fossil fuel projects by the end of 2020

Effective on January 1, 2021, the European Investment Bank (EIB), says it will no longer loan a dime of its money to any fossil fuel company and will instead use its funds to fight global climate change through investments in clean, renewable energy, Bloomberg reports:

“’The bank will phase out support to energy projects reliant on fossil fuels: oil and gas production, infrastructure primarily dedicated to natural gas, power generation or heat based on fossil fuels,’ the EIB said in a strategy paper published on Friday. ‘These types of projects will not be presented for approval to the EIB board beyond the end of 2020.'”

Specifically, according to EcoWatch, the EIB is declaring that its plans:

“Will stop companies that rely on coal, oil or gas in their infrastructure projects from applying for funding. The move dovetails with the EU’s sense of urgency in stopping the global climate crisis that has the continent sweltering this summer under record-setting temperatures. Besides the heat, European countries have also seen an increase in storms and floods linked to the climate crisis, which fossil fuels contribute to.”

Europe is currently suffering under a brutally hot summer, with temperatures well above 100 degrees Fahrenheit and record readings in many European capitals. The Washington Post recently noted:

“Already on Tuesday, some all-time high temperature records had fallen across France. In Bordeaux, for example, the high reached at least 106.2 degrees (41.2 Celsius) Tuesday, breaking the record for that location by nearly a full degree, according to Meteo France meteorologist Ettiene Kapikian. Bordeaux also set an all-time highest minimum temperature Tuesday, Meteo France reported.

“In Portugal and Spain, the hot, dry conditions are escalating the risk of wildfires, and some large blazes were already burning when the heat wave boosted temperatures further.”

The dramatic move from the EIB comes after increasing pressure from environmental groups calling for financial institutions to cut their ties with companies and projects contributing to global climate change. Many environmental activists were quick to praise the bank’s move. Alex Doukas, from Oil Change International, told The Guardian:

“The EIB’s proposal to end financing for fossil fuels by 2020 is a massive step forward in climate leadership. With this move, the world’s largest multilateral lender is now poised to leave oil, gas and coal in the past. The EU member states who control the bank must now stand behind the EIB’s ambitious climate vision, and other financial institutions should quickly follow suit to stop funding fossils.”

Featured Image Via MaxPixel

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Andrew Bradford
 

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