Europe has seized from using fossil fuels to meet its climate target. When reporting on the bank's annual results at a press conference on Wednesday, the European investment bank president, Dr. Warner Hoyer, talked about it. Changing from using fossil fuels to natural gas has been challenging in Europe. According to the European Commission, it is necessary to help countries reliant on coal to reduce emissions. Therefore, they must invest in energy efficiency, renewable energy, sustainable mobility, and green innovation. Therefore, financial institutions should stand against and stop financing unsustainable environmental projects.
The EU members have concentrated on one gas source, and they now need support and transition to alternatives. The bank chief needs massive investment in a green recovery. Moreover, the European investment bank is looking forward to transforming into the EU's climate bank since it will help achieve the climate target. It was published in November last year. They have planned to use 1 trillion euros for green funding and 50 percent of the bank activity on supporting climate action by 2030. Investing in fossil fuels also has to end since it has resulted in negative impacts on climatic conditions. They have also promised to put an end to financing fossil fuel energy projects by January 2021.
Bankrolling the Climate Crisis Indirectly
The EIB's lack guidance on choosing trustworthy clients who would help meet the climatic goals. CEE Bankwatch, the largest network of environmental NGOs, argued that the bank is lagging since they lack transparency. Lack of sustainability on ecological and social past projects has also limited them from meeting their climate goals. An example revealed by the bank watch is how EIB has enhanced unplanned hydropower development in western Balkan.
The funds meant to be used in carbon-intensive infrastructure projects would still be there under Climate Bank Roadmap. EIB will be expected to support the motorways and expressways after restricting those vehicles with internal combustion engines. That way, they will be increasing the number of motorways and reducing the emissions caused by the vehicles using internal combustion engines. Therefore the climatic goals are easily achieved. The policy loophole must also eliminate the EIB will not bankroll the climate crises, even indirectly.
