The EIB in the energy sector

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.

In 2018, our loans helped to construct approximately 26 000 km of power lines and generate 15 228 MW of electricity, of which more than 86% was produced by renewable energy sources. Discover the various ways in which we finance a more carbon-neutral energy mix