One year after expressing its desire to become the climate bank of the European Union (see EUROPE 12346/12), on Wednesday 11 November the European Investment Bank (EIB) adopted its Climate Roadmap 2021-2025 through which it pledges to mobilise €1 trillion in support of investment in climate and environmental sustainability projects in the period 2021-2030.
“Today we agreed the EIB Group Climate Bank Roadmap that details our €1 trillion response to the climate emergency in the years ahead. It is a major contribution to Europe’s role leading the way toward decarbonisation and a green, resilient and socially inclusive economy”, said EIB President Werner Hoyer.
The roadmap foresees a gradual increase in the Bank's climate and sustainability lending to reach more than 50% of its total lending by 2025 and beyond, helping to mobilise €1 trillion of investment over the coming decade.
In addition, the EIB is committed to ensuring that all its financing activities are aligned with the goals and principles of the Paris Agreement by the end of 2020.
In particular, it intends to stop financing airport expansions as well as aircraft and ships using conventional fuels.
NGO discontent
Environmental NGOs welcomed the decision, but criticised the Bank's plans to continue financing motorway or biomass projects.
Like Greenpeace, Counter Balance also criticised the fact that the roadmap does not require all companies and intermediaries receiving EIB funds to adopt sufficient decarbonisation plans beforehand.
Finally, the NGO regrets the fact that the EIB “will actually wait until the end of 2022 to stop supporting climaticide projects”.
This criticism refers to the fact that the Bank will continue to approve projects already under appraisal until the end of 2022, in order, it has stated, to manage the changes required by the alignment of its activities with the Paris Agreement.
In order to monitor, account for and report on financing for climate action and environmental sustainability, “an enhanced system will be applicable to all operations signed as of 1 January 2021”, the roadmap further specifies.
Finally, it should be noted that, in the case of the energy sector, the EIB believes that alignment on a low-carbon path is ensured by its new energy lending strategy, adopted on 14 November 2019 (see EUROPE 12370/11).
This provides for the phasing out of EIB financing for new fossil energy projects from the end of 2021, but maintains exceptions for natural gas (see EUROPE 12406/7).
See the roadmap: https://bit.ly/2Um9p7C (Original version in French by Damien Genicot)