Civil society comment on Fossil Fuel Finance Policy of European Bank (EBRD)

Civil society comment on Fossil Fuel Finance Policy of European Bank (EBRD)

Today, 130 civil society organizations from more than 40 countries have launched a statement calling on the European Bank for Reconstruction and Development (EBRD) to end finance to all fossil fuels, including gas. The EBRD is currently preparing a new Energy Sector Strategy 2024-2028, which is expected to be published by the end of the year. 

The EBRD is the third biggest funder of fossil fuels among all multilateral development banks, behind the World Bank Group and the Islamic Development Bank. From 2018 to 2021 it provided EUR 2.9 billion to the fossil energy sector. The EBRD has already excluded coal and upstream oil and gas, and the new draft Strategy excludes midstream oil and oil-fired electricity generation. However, the draft Strategy would continue to allow some investment in new midstream and downstream gas projects. 

Rather than continuing to finance gas, the EBRD has the opportunity to prioritize public finance for the energy efficiency and renewable energy solutions that can accelerate the transition to a more secure, sustainable, and peaceful future. Continued investment in gas exposes the EBRD’s countries of operation to high and volatile energy prices that can have a severe impact on a country’s ability to reach its development targets.  

This is directly related to the situation in Malta.

Today, Malta’s energy demands are primarily met through the use of gas-fired turbines using liquefied natural gas (LNG). The proposed Melita TransGas pipeline connecting Sicily and Malta would lock Malta further into a fossil fuel future. As Friends of the Earth Malta, we oppose any new  investment in fossil fuels, including the proposed Melita TransGas pipeline, and instead we promote investment in energy savings, renewable energy sources, and community energy, with the vision of a fossil free future for Malta!

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