Concerns as EIB balks at plan to halt fossil fuel investments

The European Investment Bank (EIB) has balked at a proposal to halt new investments in fossil fuels, raising concerns that Germany and other nations are plotting to water down what would be one of the financial sector’s most ambitious climate moves. 

The EIB announced this year that it would end lending to new gas projects, having already curtailed funding for coal and oil. This would free up more money for renewable energy developments. The details of the plan were expected to be confirmed by a board meeting of EU finance ministers on Tuesday but last-minute lobbying has forced a postponement.

Executives of the bank, which is owned by EU member states, said the plan was still on course and would probably be approved next month. 

But climate campaigners fear the measures will be delayed further and weakened. “This delay is a direct result of Germany and the European commission pushing to add more fossil fuels back into the policy. This is the opposite of the leadership demanded by millions of climate strikers and activists around the world,” said Alex Doukas of the NGO Oil Change International.

Between 2013-17, the EIB provided almost €12 billion (£10.4 billion) in loans to fossil fuel projects, almost all for gas.