The European Investment Bank (EIB) is turning its back on fossil fuel projects. EIB is the European Union’s lending arm, and it has decided to use its money to help stop the climate crisis by no longer funding fossil fuel projects and to ramp up its investments in clean energy. The only negative thing is that the EIB won’t start denying fossil fuel projects of loans just yet, with the new policy is coming into place starting when the calendar turns over to 2021.
With the freed-up funds, the bank plans to create an energy transitions fund to support projects that will help member states transition to cleaner energy. The move away from fossil fuels comes after a growing wave of pressure bearing down on financial institutions to cut their ties to projects that increase greenhouse gas emissions.