EIB ‘roadmap’ crucial for climate bank credibility
Posted on 08 October 2020
The Bank clean up its act, not bail out polluters
What is happening? On 9 October, EU Member States will see a first draft of the European Investment Bank’s forthcoming ‘Climate Bank Roadmap’ at an informal meeting of the Bank’s Board of Directors.
This will be followed by an official EIB Board meeting on 13 October at which the Roadmap will be discussed.
Why is this important? The EIB wants to become the EU’s climate bank, and has already committed to ending lending to fossil fuel projects from 2021.
The Climate Bank Roadmap, which will cover the period up to 2025, is supposed to show how the EIB intends to align with the Paris Agreement.
However, currently there is a big discrepancy between the EIB’s stated aims and its operations. The Bank lent polluting transport - such as motorways and airports - almost €15 billion between 2016 and 2019. It has also provided financing to Polish energy company PGE, 91% of whose energy is generated from coal, higher than any other major European utility.
Sebastien Godinot, WWF European Policy Office Economistsaid: “The EIB needs to clean up its act, not bail out polluters: it should immediately stop financing airport and motorway expansions and base its support to companies on their having credible targets and transition plans to align with the Paris Agreement. The upcoming roadmap will show clearly whether the ‘climate bank’ plan is a serious commitment or pie in the sky.”
What is WWF asking for? WWF and other campaigners are calling on EIB to do two things: 1. End all financing for motorway and airport expansion. 2. Withdraw support from all high-carbon clients and from all financial intermediaries (the institutions that channel funds from the EIB to its borrowers) which do not set and publish climate science-based targets and time-bound transition plans for the entire company to align with the Paris Agreement.
What is the timeline? The Climate Bank Roadmap is expected to be approved by the Board of Directors in November, in time to meet the EIB's commitment to align its operations with the Paris Agreement by the end of 2020.
Economist, WWF European Policy Office
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Media Manager, WWF European Policy Office
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