The European Investment Bank (EIB) is once again called upon, on Thursday 14 November, to adopt its revised lending policy in order to bring it more into line with European objectives to combat climate change (see EUROPE 12349/22).
One of the issues at stake in this decision concerns the level of ambition in the elimination of financing aimed at promoting fossil fuels and, in particular, gas projects.
Compared to its initial ambition formulated in July, the European institution now proposes to postpone by one year, to the end of 2021, the date of approval of new gas projects considered to be projects of common interest (see EUROPE 12361/12). It also proposes to clarify the lending conditions for low-carbon gas infrastructure projects, such as hydrogen.
If a decision is taken on Thursday, the positions to be taken by Germany and the European Commission would have a decisive influence. However, according to MEP Bas Eickhout (Greens/EFA, Netherlands), Berlin and the Commission constitute “a real problem” in setting the EU’s maximum climate ambition, as “key players” on this issue.
“If we want carbon neutrality by 2050, the energy sector should go first. Gas is better than coal, but it is still a fossil fuel”, he told reporters on Tuesday 12 November. “Here we are talking about gas infrastructure on top of existing or [planned infrastructure], such as Nord Stream II. Now, we have more gas infrastructure in place than we what we are importing”, he added, warning against a decision that would limit the search for alternatives using renewable energy. In particular, he mentioned infrastructure in the Netherlands operating at 10% of its capacity and another unused one in Spain.
Mr Eickhout said that several groups – Greens/EFA, S&D, Renew Europe and GUE/NGL – are calling for an extension of the duration of the review of the delegated act setting out the projects of common interest in order to hold a specific debate with the von der Leyen Commission, once it takes office. On this point, he said the “EPP has to adjust to this reality”.
When asked about the position it will defend on Thursday, the European Commission remained evasive. The Commission strongly supports the EIB’s commitment to “achieve full alignment with Paris Agreement by the end of 2020”, said its spokesperson, Mina Andreeva. She recalled that the President-elect of the Commission, Ursula von der Leyen, wants EIB financing for climate action to increase from the current 25% to 50% under her mandate.
As for projects of common interest, another spokesperson mentioned the search for the “good balance” between eligibility criteria and longer adjustment periods for the elimination of gas interconnection and storage projects that are important for energy security.
On Monday 11 November, in Luxembourg, EIB President Werner Hoyer told a group of journalists that the EU Bank was “already the Climate Bank”, an expression dear to France, and assured them that the part of the EIB’s climate activities would continue to “grow” to be “in line with climate requirements”.
He welcomed the recent conclusions of the ECOFIN Council inviting the EIB to phase out financing of fossil fuel projects, especially solid ones (see EUROPE 12366/8). This is an “inevitable” step, he said, while stressing the need to “think about credible solutions to help those who will bear the heaviest burden when this transition takes place”. (Original version in French by Mathieu Bion with Agathe Cherki)