The promotion of sustainable, competitive and secure sources of energy is a key EU policy objective and an important sector for EIB financing.
The Board of the EIB agreed a new energy lending policy and confirmed the EIB’s increased ambition in climate action and environmental sustainability.
The new Energy lending policy details five principles that will govern future EIB engagement in the energy sector:
prioritising energy efficiency with a view to supporting the new EU target under the EU Energy Efficiency Directive
enabling energy decarbonisation through increased support for low or zero carbon technology, aiming to meet a 32% renewable energy share throughout the EU by 2030
increasing financing for decentralised energy production, innovative energy storage and e-mobility
ensuring grid investment essential for new, intermittent energy sources like wind and solar as well as strengthening cross-border interconnections
increasing the impact of investment to support energy transformation outside the EU.
Following the approval of the revised energy lending policy, the EIB will no longer consider new financing for unabated, fossil fuel energy projects, including gas, from the end of 2021 onwards. In addition, the bank set a new Emissions Performance Standard of 250g of CO2 per Kilowatt/hour (KwH). This will replace the current 550g CO2/KwH standard. A previous review of energy lending in 2013 had already enabled the EIB to be the first international finance institution to effectively end financing for coal and lignite power generation through adoption of a strict Emissions Performance Standard.