EIB to consider tougher rules on lending to carbon emitting industrial projects
Following an extensive consultation, the European Investment Bank (EIB) has published its draft strategy on climate action. Over the last 5 years the EIB has invested more than €88bn into climate action projects which makes the EIB the largest climate investor in the world. Taking into account feedback and input received from stakeholders throughout the consultation process, a draft EIB Climate Action Strategy is set to be approved in September by the Bank’s board.
One of the main parts of the new climate friendly lending strategy could be criteria for lending to industrial projects, which could curb finance to polluting projects. Its strategy could extend an emissions performance standard (EPS) criteria to industries other than the energy generation sector. Carbon price project projections will now be considered as part of assessing long term projects any capital-intensive assets financed by the bank. This price will rise at an accelerating rate, reaching around €50 per tonne of CO2 by 2030, then rising by €1 per year to 2040 and €2 thereafter. The EIB says this EPS debars lending to projects whose emissions are not in line with the EU’s climate targets. NGOs meanwhile wanted it lowered to 350gCO2/kWh to ensure only the most efficient fossil fuel-fired power plants are supported in future.