December 12, 2018 Read More →

European development bank plans to end coal financing

Financial Times:

The European Bank for Reconstruction and Development, one of the world’s leading development banks, is expected to vote on Wednesday to adopt a “no coal, no caveats” financing policy and slash lending to oil exploration and production projects as the organisation seeks to combat climate change.

The move, if approved as expected by the bank’s board of directors, is set to bring into sharper relief the activities of Chinese and other development banks that finance huge numbers of coal and oil projects around the world.

“We are planning a no coal, no caveats policy,” said Nandita Parshad, EBRD managing director for energy and natural resources. She added that the only circumstances under which the bank would finance upstream oil projects would be to reduce emissions by, for example, installing equipment to cut flaring gas from oil wells.

The 38 countries that the EBRD lends to include some of the most polluting countries on earth. Poland, Serbia, Kazakhstan, Kosovo and Mongolia all derive at least 70 per cent of their energy from heavily polluting coal-fired power stations.

Ms. Parshad said the EBRD would continue to lend to gas projects which, although a fossil fuel, was an important source of energy and a low emitter of carbon. The focus of the bank’s lending in the energy sector would continue to be renewables, such as wind and solar power plants, that made up 34 per cent of the bank’s portfolio between 2014 and 2017, she added.

More: Development bank to halt coal financing to combat climate change


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