Europe's climate credentials face acid test in EIB fossil fuel vote

(Reuters News, 13 Oct 2019) The bank's draft proposal in July to end oil, coal and gas financing was praised by green groups and politicians but has since seen some pushback.

Europe's climate change credentials face an acid test this week when the bloc's lending arm, the European Investment Bank, decides whether or not to stop funding fossil fuel projects beyond next year.

The decision is due to be made on Tuesday by EU finance ministers and other top officials after an intense few months of discussion in European capitals and within the region's energy industry.

The EIB's draft proposal in July to end oil, coal and gas financing was widely praised by environmental groups and politicians alike as a strong signal from the world's largest multilateral lender, but has since seen some pushback.

The European Commission plus Germany, Italy, Poland, Latvia and potentially Spain would like the bank to keep funding some types of gas projects to help the move away from coal or nuclear power, or for energy security reasons.

Some key wording on how emissions targets will be measured has also been loosened, which critics of the changes argue will make it difficult to reliably monitor their impact.

"I think this is going to be the litmus test" Green EU lawmaker Bas Eckhout told Reuters. "For a climate neutral economy by 2050 you need to make sure your energy infrastructure is zero-carbon."

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Reuters News, 13 Oct 2019: Europe's climate credentials face acid test in EIB fossil fuel vote