FOR IMMEDIATE RELEASE
November 5, 2020
Laurie van der Burg, laurie [at] priceofoil.org
Melanie Mattauch, melanie [at] 350.org
European Development Finance Institutions fall short on climate ambition by allowing continued financing for fossil gas
Today, one week ahead of the Finance in Common Summit, the Association of European Development Finance Institutions (EDFI) announced joint ambitions for climate action. The institutions commit to full Paris alignment of new financing by 2022 and to end coal and fuel oil financing. For gas finance, they commit to “generally exclude [such finance] by 2030 at the latest”, but leave the room open to gas financing beyond 2030 in certain cases.
Today, devex.com reported that the European Commission had proposed a “Team Europe” commitment of higher ambition for the EIB, EBRD and EDFI to jointly end public finance for fossil fuels energy projects by the end of 2022 without exemptions for gas. This proposal was rejected due to “limited appetite by some” for another declaration.
Oil Change International and 350.org have responded as follows:
Laurie van der Burg, Senior Campaigner at Oil Change International:
“By allowing continued gas financing up until 2030 and leaving options open for gas financing beyond 2030, European DFIs are clearly failing to face up to the climate emergency. The science is clear that financing new fossil fuel development and related infrastructure, including fossil gas, is not compatible with keeping global warming limited to 1.5C.”
“To prevent this from creating a harmful precedent, the EIB and progressive EDFI members should join forces to build a global fossil fuel exit coalition. They should send a clear signal that Paris alignment means stopping adding fuel to the fire now instead of in 10 years.”
Clémence Dubois, campaigner at 350.org:
“It is absurd that European development banks are still fueling the climate crisis with investments in coal, oil and gas around the world to this day. Financial institutions need to stop fossil finance altogether and much more quickly.
The science is clear. There simply is no room for more gas development. Citizens have been leading the way on just solutions to the climate, inequality and economic crisis. Supporting those would be a far better use of our public money.”
- Devex.com article that discusses the European Commission proposal including a commitment to end EU public finance for fossil fuels by end of 2022: https://www.devex.com/news/exclusive-development-banks-search-for-climate-compromise-ahead-of-landmark-summit-98475;
- OCI analysis showing that carbon emissions from oil, gas and coal in already operating fields and mines globally would push the world beyond 2°C, let alone 1.5°C of warming: https://priceofoil.org/2016/09/22/the-skys-limit-report/;
- OCI and Friends of the Earth US Report on G20 public finance for energy showing that G20 export credit agencies provide nearly 14 times as much finance for fossil fuels as for clean energy: https://priceofoil.org/content/uploads/2020/05/G20-Still-Digging.pdf;
- Finance in Common Summit website: https://financeincommon.org/;
- OCI briefing on the opportunity provided by the Finance in Common Summit to leverage leadership on ending fossil fuel finance: https://priceofoil.org/content/uploads/2020/09/Finance-in-Common-Briefing-v3.pdf;
- OCI briefing “Burning the Gas ‘Bridge Fuel’ Myth”: https://priceofoil.org/content/uploads/2019/05/gasBridgeMyth_web-FINAL.pdf