ENERGY: International Banks Restrict Funding of Coal Power Plants

The World Bank (WB) published a new Energy Sector Directions paper that announced funding for coal generation power plants will only be issued in rare circumstances, signalling a trend with financial institutions to cut assistance to fossil fuel-based energy projects. On 19 July, the European Bank for Reconstruction and Development (EBRD) followed with a similar announcement that it will restrict funding to Greenfield coal power generation.

Between 2006 and 2011, 48% of EBRD’s euro energy portfolio was allocated towards fossil fuel development.  Now, both the WB and EBRD have established tighter criteria for coal lending, which may impact investment funds for coal-fire projects such as the Plomin-C project in Istria. The European Investment Bank (EIB) took a harsher stance, and announced that new and refurbished coal-fired power plants are no longer eligible for EIB funding

See more