European Investment Bank Will Not Finance Most Coal Power Stations

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coal plantThe European Investment Bank (EIB), the main lending arm of the European Union, has decided to stop financing most coal-fired power plants, part of an effort to help the 28-nation bloc meet ambitious greenhouse gas reduction targets by 2030.

The EIB says that new and refurbished coal-fired power stations will be ineligible for funding unless they emit less than 550 grams of carbon dioxide per kilowatt hour, a standard that traditional coal power plants would be unable to meet.

Power stations that burn coal would only be able to meet the standards if they also produce heat for municipal or commercial heating systems or burned biomass. The EIB says it plans to further tighten its emissions standards for coal- and natural gas-fired power plants in the future.

The new standards “represent a step change in the EU’s fight against climate change and puts the bankers ahead of the politicians in terms of tangible action,” said Ingrid Holmes of the environmental think tank E3G.

Article appearing courtesy Yale Environment 360.

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Yale Environment 360 is an online magazine offering opinion, analysis, reporting and debate on global environmental issues. We feature original articles by scientists, journalists, environmentalists, academics, policy makers, and business people, as well as multimedia content and a daily digest of major environmental news. Yale Environment 360 is published by the Yale School of Forestry & Environmental Studies and Yale University. We are funded in part by the Gordon and Betty Moore Foundation and by the John D. and Catherine T. MacArthur Foundation. The opinions and views expressed in Yale Environment 360 are those of the authors and not of the Yale School of Forestry & Environmental Studies or of Yale University.

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