{"id":14611,"date":"2013-12-11T15:01:38","date_gmt":"2013-12-11T15:01:38","guid":{"rendered":"http:\/\/www.rtcc.org\/?p=14611"},"modified":"2013-12-11T15:01:38","modified_gmt":"2013-12-11T15:01:38","slug":"coal-blow-as-major-european-bank-cuts-funding","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2013\/12\/11\/coal-blow-as-major-european-bank-cuts-funding\/","title":{"rendered":"Coal blow as major European bank cuts funding"},"content":{"rendered":"

EBRD joins World Bank and European Investment Bank in slashing funding for coal
\n<\/strong><\/span><\/p>\n

\"Coal_466<\/p>\n

By Nilima Choudhury<\/a><\/strong><\/p>\n

The European Bank for Reconstruction and Development (EBRD) has approved a five-year strategy to limit financing coal projects and increase investment in clean technology and energy efficiency.<\/strong><\/p>\n

The multilateral development bank will limit financing coal fired power generation projects to \u201crare and exceptional circumstances in which there is no feasible alternative energy source.\u201d<\/p>\n

\u201cWe cannot use carbon without having a thought about what the impact of climate change is going to be,”\u00a0EBRD managing director for energy and natural resources, Riccardo Puliti told Bloomberg. “There is a climate-change problem, and there are actions to be undertaken in order to solve it.\u201d<\/p>\n

Since 2006 the bank has invested $8.6 billion in energy and power projects, of which $2.75 billion has been directed to renewables and $717m towards coal.<\/p>\n

The EBRD joins other financial institutions like the World Bank<\/a>\u00a0and\u00a0the European Investment Bank<\/a> and the US<\/a>, UK<\/a>\u00a0and Norway<\/a> in cutting spending on coal plants, which collectively are the largest single source of greenhouse gas emissions.<\/p>\n

Growing trend<\/strong><\/p>\n

Campaign groups like WWF welcomed EBRD’s strategy<\/a> saying the time is ripe for other public financial institutions, in particular multilateral development banks, to follow suit immediately and shape the world\u2019s shift to energy savings and sustainable energy.<\/p>\n

\u201cThe move by the EBRD is positive, but to have a serious chance of keeping global warming below 2\u00b0C, the EBRD needs to strengthen its standards and eventually phase out its support for all power supply based on fossil fuels,” Sebastien Godinot, an economist at WWF\u2019s European Policy Office said.<\/p>\n

In the past the bank has stressed coal is a small part of its overall funding strategy.<\/p>\n

“It is actually a small part (about seven projects over the last seven years) of our activities in this sector and for most of our countries of operation it simply isn\u2019t an issue,” a spokesperson told RTCC recently.<\/p>\n

“By comparison we financed around 57 renewable energy projects in the same period for a value of approximately \u20ac2 billion and renewable financing is by far the fastest growing segment of our activity in the power sector.<\/p>\n

We have also done a lot of less glamorous work in areas such as smart grids and energy efficiency more generally. This doesn\u2019t get the headlines in the same way but there are huge opportunities here to improve efficiency and this is really our bread and butter work.”<\/p>\n

EBRD\u2019s first test will come in the form of a new 600MW lignite plant project in Kosovo which the bank may be asked to co-finance.<\/p>\n

\u201cIn the coming months, we will be closely monitoring how the EBRD is implementing its new \u2018anti-coal policy\u2019 and if the Bank actually walks the talk,”\u00a0Godinot added.<\/p>\n

“The Bank must stand firm on its \u2018anti-coal policy\u2019 and support clean alternatives for Kosovo and elsewhere.\u201d<\/p>\n

VIDEO: Heffa Sch\u00fccking, CEE Bankwatch Network on the role banks play in financing coal production.\u00a0<\/strong><\/p>\n