Submission to EIB's public consultation on its energy lending policy
The European Investment Bank (EIB), the world’s largest multilateral lender and major provider of climate finance, is holding a public consultation on its energy lending policy which was last revised/adopted in 2013.
The EIB is the lending arm of the European Union and its shareholders are Member States. Along with other multilateral development banks the EIB has announced its intention to align with the objectives of the Paris Agreement; to shift financial flows in line with low GHG emissions and climate-resilient development (operationalisation of Article 2.1c). But as their lending still supports fossil fuel projects within Europe, the neighbourhood and in developing countries, they are far from there.
Calling for an end to funding for fossil fuels and more money for energy efficiency and renewables today will have a long term impact: the majority of the energy assets financed by the Bank will be operating for 20 years or more.
Key overall demands:
- Commit immediately to end any financing to fossil fuels exploration, extraction, transmission, distribution, storage, purchase and generation
- Make any non-fossil fuel project financing conditional on company-level decarbonisation plans and compatibility with the Paris Agreement
- Step up financial assistance to small-scale and people owned and controlled decentralised renewable energy projects with a strong sustainability objective.
- Adopt the energy efficiency first principle
- Update the EIB climate strategy to reflect the recommendations of the IPCC report on a 1.5C temperature increase.
Key demands on lending in developing countries:
- Increase the current 35% climate action target
- Seriously scale-up support going to energy access in developing countries (SDG7)
- Scale-up support to least developed countries and small island states given the barriers faced by these countries in mobilising private finance