EU bank announces end to fossil fuel financing

The board of the European Investment Bank has agreed to cease funding fossil fuel projects, but what president Werner Hoyer called “the most ambitious climate investment strategy of any public financial institution anywhere” leaves the door open until the end of 2021.

The vote was postponed from mid-October amid concerns from Germany and others over the inclusion of gas, which is seen by some as a cleaner 'bridging' fuel to help economies wean themselves off more heavily polluting coal in power generation.

The policy leaves open the possibility of support for gas infrastructure, such as plants that emit less than 250g CO2 per kilowatt hour of electricity, as well as 'low carbon' technologies such as hydrogen and biogas, which the industry argues can take advantage of existing natural gas infrastructure.

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