Publications2

Reports & Briefings

Briefing on Aligning the EIB Emissions Performance Standard (EPS) with the Paris Agreement

The European Investment Bank (EIB) is being reviewing its Emissions Performance Standard (EPS) in 2017. Its EPS is part of the EIB Energy Lending Criteria1 adopted in July 2013, and set at a level of 550 g CO2/kWh.

The EPS review is a critical opportunity for the EIB to align its energy portfolio with the Paris Agreement. It is also a crucial credibility test before the review of the full EIB Energy Lending Criteria in 2018. After the EIB EPS was set up in 2013, the game-changing UNFCCC Paris Agreement was signed by 195 countries and ratified. The agreement sets out a global action plan to “hold the increase in the global average temperature to well below 2 °C above preindustrial levels and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels”. The Paris Agreement is more ambitious than previously agreed climate targets, and thus requires a step change for adequate implementation.

In addition, its Article 2-1 (c) highlights the need to make “finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development” – in other words, to align financial flows with the well below 2°C climate target.

Since the EIB set up its initial EPS in 2013, the context has radically changed:

-          The Paris Agreement is a game changer and it requires more efforts;
-          Climate science is tighter than ever; the IEA stated that the world needs to reach an average of 100 g CO2/kWh for new power generation in 2035;
-          Renewable power is becoming more available, competitive and affordable every day;
-          The EU is discussing mandatory EPS in two regulations for both new and existing fossil-fuel fired plants;
-          In the period 2013-2016 the EIB supported fossil-fuel fired power plants that are far below the EIB EPS level, with two exemptions allowed by the EIB Energy Lending Criteria.

On these bases, our recommendations are as follow:

• The EIB should set its new EPS level at 200 g CO2/kWh in order to send a strong signal to both power industry and investors.

• The two exemptions to the EPS in the EIB Energy Lending Criteria remain applicable, to allow flexibility in exceptional cases. In such cases the EIB should clarify and strengthen the justification provided.

pdf Read the full NGO Briefing on EIB EPS Review here (673 KB)

Latest Publications

  • New report - European Fat Cats: EU Energy Intensive Industries: paid to pollute, not to decarbonise

    This report shows that energy intensive industry sectors have been among the slowest in the European Union (EU) to reduce their greenhouse gas emissions and invest in solutions to decarbonise and maintain technological leadership.
  • Letter to President Juncker on the EU’s future finances

    The co-signatories of this letter represent a broad group of business associations, civil society, think tanks and other organisations who are working together to bring strong support to the EU’s commitment to achieve the UN Sustainable Development Goals and the Paris Climate Agreement objectives.    They have written to the President of the European Commission Jean-Claude Juncker to urge him to ensure that the EU’s future finances are aligned with Europe’s climate objectives and are consistent with the Paris Climate Agreement and Sustainable Development Goals across all programmes.   Open Letter to President Juncker on the Multi Annual Financial Framework
  • CAN Europe letter ahead of the Informal Environment Council on 10-11 April

    Brussels 29.3.2018 Dear Minister for Environment, At the upcoming Informal Environment Council on 10-11 April in Sofia you have been invited to discuss the European Union’s contribution towards the international climate negotiations and in particular towards the UNFCCC Talanoa Dialogue.
See All: Climate & Energy Targets