Mid-ranking representatives from the European Union member states agreed on a preliminary text which urges the European Investment Bank to stop funding fossil fuel projects in a move that appears to be a blow to the coal, gas, and oil industries. The document, however, still requires approval from more senior diplomats, according to a report by Reuters.
The text calls EIB, the bloc’s largest lender, to phase out multi-billion-euro funding in coal, oil, and gas projects as a means to reduce carbon dioxide emissions. Data from EIB showed the multilateral development bank (MDB) lent nearly 2 billion euros to fossil fuel projects in 2018.
Two EU officials said that EU’s top diplomats were still discussing the document. EU member states remain divided regarding this matter. Countries such as Germany, Italy, Latvia, and Poland wants EIB to keep lending to some types of natural gas projects as a way to replace coal, while some others fully support the initiative. Last year, the EIB board failed to agree on a similar proposal to stop fossil fuel funding.
