Putting Public Finance on the Right Side of History
Opinion article by Werner Hoyer and John Murton
1 October 2021
The economics of renewable energy have improved beyond recognition. Solar power is now the cheapest form of electricity in history. Over 90% of power-generation capacity added around the world last year was in renewables. But to stand a chance of limiting global warming to 1.5°C above pre-industrial levels, the world’s energy systems must transform even faster. And that requires governments and public financial institutions to stop supporting fossil fuels and instead prioritise international support for the clean-energy transition.
But, of course, jobs will also disappear as we abandon fossil fuels. We therefore must take steps to ensure that every community benefits from the transition. This will require carefully designed policies to support a managed shift away from older forms of energy generation. Global solidarity will be critical. We must do much more to provide everyone with the necessary technologies, expertise, investment support, and financial strategies.
At the United Nations Climate Change Conference (COP26) in Glasgow in November, governments and financial institutions must commit to supporting cheaper, cleaner, no-regrets energy, and to ending all international support for fossil-fuel-based power.
Read more in an Op-ed cosigned by EIB President Werner Hoyer with John Murton, UK government's COP26 Envoy, published by Project Syndicate.
The role of sustainable bonds in delivering the Sustainable Development Goals was the subject of a digital UNDP-EIB event The Sustainable Development Goals and Bonds – Working together for Impact which saw a special focus on the needs of emerging markets. Senior representatives from the Indonesian and Uzbek Finance Ministries joined UNDP Administrator Achim Steiner, EIB President Werner Hoyer, Vice President Ambroise Fayolle as well as Head of EIB Capital Markets Eila Kreivi and Maria Shaw-Barragan Head of EIB Global Partners for the wide ranging discussion.
Vice-President Pavlova spoke at the Tatra Summit about the need to make European transport greener and explained how the Bank is providing more financing and advisory services in this sector. She also gave advice on green energy during a focus group session.