The European Union’s development bank has followed the lead of other similar institutions in halting investment in coal-fired power plants.
The European Bank for Reconstruction and Development (EBRD) voted to phase out its financial support of coal plants and promote increased investments in renewable energy and energy savings.
Funding to coal plants would only be made in rare and exceptional circumstances the bank said.
The announcement follows a move by the bank’s counterpart, the European Investment Bank (EIB) to halt investment in most coal plants.
The World Bank has also indicated it will halt investment in coal-fired power plants, other than in exceptional circumstances
Both banks have been under significant pressure from environmentalists to stop such investments.
The London-based EBRD focuses its funding on development in non-EU states of Eastern Europe and Central Asia.
The Luxembourg-based EIB funds projects within the EU.
“It is now time for all other public financial institutions, in particular multilateral development banks, to follow suit immediately,” said Sebastien Godinot, an economist at the European policy office of campaign group WWF.
“The move by the EBRD is positive, but to have a serious chance of keeping global warming below 2.0° Celsius, the EBRD needs to strengthen its standards and eventually phase out its support for all power supply based on fossil fuels,” he added.
The first test of the new policy may come when the bank is asked to co-finance a new 600MW lignite power plant in Kosovo next year.
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High time it happened here. Perhaps trade imbargoes against Australia may heltpthe criminally ignorant wake up!!.