Statement: The Energy Sector Strategy 2024–2028 Must Mark the End of the EBRD's Support to Fossil Fuels
From 2018 to 2021, the EBRD invested EUR 2.9 billion in the fossil energy sector, with the majority of this support going to gas. This makes it the third biggest funder of fossil fuels among all multilateral development banks, behind the World Bank Group and the Islamic Development Bank.
The EBRD has already excluded coal and upstream oil and gas fields from its financing. The draft Energy Sector Strategy further excludes oil transportation and oil-fired electricity generation. However, the draft strategy would continue to allow some investment in new fossil gas pipelines and other transportation infrastructure, as well as gas power generation and heating.
In the statement, the civil society organizations point out that any new support to gas risks locking in outdated energy infrastructure in places that need investments in clean energy the most. At the same time, they highlight, ending support to fossil gas is necessary, not only for climate security, but also for ensuring energy security, since continued investment in gas exposes countries of operation to high and volatile energy prices that can have a severe impact on their ability to reach development targets. Moreover, they underscore that supporting new gas transportation infrastructure is not a solution to the current energy crisis, given that new infrastructure would not come online for several years, well after the crisis has passed.
The signatories of the statement call on the EBRD to amend the Energy Sector Strategy to
- fully exclude new investments in midstream and downstream gas projects;
- avoid loopholes involving the use of unproven or uneconomic technologies, as well as aspirational but meaningless mitigation measures such as "CCS-readiness"; and
- strengthen the requirements for financial intermediaries where the intended nature of the sub-transactions is not known to exclude fossil fuel finance across the entire value chain.
The signatories also call on the EBRD to join the Clean Energy Transition Partnership, also known as the Glasgow Statement on International Public Support for the Clean Energy Transition.
You might also be interested in
Putting Promises Into Practice: Clean Energy Transition Partnership signatories' progress on implementing clean energy commitments
This report reviews Clean Energy Transition Partnership signatories' progress on their pledge to shift international public finance into clean energy.
Burning Billions: Record public money for fossil fuels impeding climate action
This briefing provides the latest evidence on how the world is aligning public financial flows with the need to reduce GHG emissions.
Assessing National Oil Companies' Transition Plans: An essential tool for banks, investors, and regulators
This brief offers guidance to investors, banks, standard setters, and governments on how national oil companies can enhance their low-carbon transition plans in line with the Paris Agreement.
The Abu Dhabi National Oil Company in a Changing World: Navigating the energy transition and safeguarding investors
This case study examines the Abu Dhabi National Oil Company (ADNOC) as one of the important players in a Paris-aligned transition.