BUSINESS - ECONOMY
| 2013-07-24EU to decide on curbing loans to coal plants
LONDON/WASHINGTON – The EU’s main lending arm, the European Investment Bank, was yesterday expected to decide whether to stop financing coal-fired power stations to help the 28 nation bloc reduce pollution and meet its climate targets.
Directors of the EIB, who are nominated by member states, will make a decision following moves by other multilateral lenders such as the Washington headquartered World Bank to fund coal-fired power stations only in “rare circumstances.”
Since the start of 2007, the EIB has loaned around 11 billion euros (US$14,5 billion) to fossil fuel-fired plants, most of it to gas rather than coal, out of its total lending for power of 83 billion euros.
A decision to end EIB financing of coal power in Europe could influence other lenders as well, Ingrid Holmes of think-tank E3G said.
“If the EIB votes in favour of tougher lending criteria for coal-fired power stations, it is a very clear message that coal has a limited shelf life in Europe. But in developing countries the message is much less clear cut,” she said.
US President Barack Obama said earlier this month that financing to coal-fired power should be curbed to all but the world’s poorest countries.
The EIB is proposing that new fossil-fuelled power plants would have to emit 550 grams of carbon dioxide per kilowatt hour, which would effectively rule out new hard coal and lignite power plants but would enable some new plants to burn the fossil fuel if they mix it with biomass. – Nampa-Reuters
Directors of the EIB, who are nominated by member states, will make a decision following moves by other multilateral lenders such as the Washington headquartered World Bank to fund coal-fired power stations only in “rare circumstances.”
Since the start of 2007, the EIB has loaned around 11 billion euros (US$14,5 billion) to fossil fuel-fired plants, most of it to gas rather than coal, out of its total lending for power of 83 billion euros.
A decision to end EIB financing of coal power in Europe could influence other lenders as well, Ingrid Holmes of think-tank E3G said.
“If the EIB votes in favour of tougher lending criteria for coal-fired power stations, it is a very clear message that coal has a limited shelf life in Europe. But in developing countries the message is much less clear cut,” she said.
US President Barack Obama said earlier this month that financing to coal-fired power should be curbed to all but the world’s poorest countries.
The EIB is proposing that new fossil-fuelled power plants would have to emit 550 grams of carbon dioxide per kilowatt hour, which would effectively rule out new hard coal and lignite power plants but would enable some new plants to burn the fossil fuel if they mix it with biomass. – Nampa-Reuters
