European Investment Bank to stop financing fossil fuel companies

by Harini Manivannan
1.5K views
2 min read

🔎 What’s going on?

The European Investment Bank (EIB) announced on Thursday that they would stop lending to oil, gas and coal energy projects after 2021.

👏 Fantastic, what does this mean?

Ahead of the UN lead 25th Conference of Parties (COP25) meeting in Madrid in December, the EIB is eager to demonstrate their level of ambition when it comes to meeting the Paris Agreement.  

In order for Europe to align their Paris targets of net-zero by 2050, the EIB has now committed to redirecting financing towards clean technology innovation (e.g. battery storage, smart energy systems), energy efficiency (e.g. building renovations) and renewable energy (e.g. solar and wind power). This move will unlock EUR 1 trillion of investment over the next decade until 2030. 

❓Why should I care?

Changing the EIB’s energy lending policy is not an easy task - it took 11 months of intense engagement between multiple parties including every EU member state, shareholders of the bank, the European Parliament and Commission, private sector, financial institutions and the public to come to this decision. No small feat! More importantly, this move sends a strong signal to the rest of the world that the European Union and its bank is committed to transitioning to net-zero by 2050. 

🌟 Where do we need to be?

The bottom-line message from the IPCC has always been - the costs of not taking action are far greater than taking action. Europe is currently responsible for 10% of global emissions and emissions from the global energy sector has risen in 2019. As of 2017, renewables are only 17% of Europe’s current mix of energy - this needs to drastically shift to 50%+ by 2030. 

👤 What can I do about it?

As a shopper, vote with your wallet by switching your electricity provider to a renewable energy provider if possible. 
If you live in France, consider switching to a green tariff with any of these providers: Direct Energie, Planete Oui, Poweo, and GDF (Gaz de France).

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