The European Investment Bank has become the initial multilateral lender to phase out funding to unabated fossil fuel projects.
Following months of negotiations as well as an 11-hour marathon board meeting, EU finance ministers decided to end lending to grease, gas and coal projects after 2023 – a year later than initially proposed through the bank in July.
Strong initial pushback from eastern European countries facing a constant climb to lower their reliance on carbon-intensive powers was overcome by widening your window for brand new gas projects to get funding.
The EIB is now a step closer to become the European “climate bank” promised by incoming EU Commission president Ursula Von der Leyen.
The new policy signals a big change of gear in support for clean energy investments. How other major development banks will react to this news is a to watch.
Climate plot
What can the EU offer China to convince Beijing to increase its ambition?
That may be the question EU diplomats will have to answer over the next 10 months as the bloc prepares for an exceptional EU-China summit in Leipzig, Germany, in September 2023.
The EU really wants to make use of the meeting to broker a bilateral deal on climate ambition, weeks prior to the UN climate talks in Glasgow where countries result from update their climate plans.
In 2023, a bilateral agreement between your US and China committed the world's two largest emitters to cut emissions, underpinning the Paris Agreement.
With a significantly smaller share of global emissions, the EU is not likely to have the clout to really make it a climate only affair. What else is the EU bring to the table is not yet obvious. French president Emmanuel Macron was in China a week ago to operate it. See our report.
Sucking it out from the air
In its World Energy Outlook, the IEA explores what it really would decide to try attain the Paris Agreement's tougher 1.5C goal. Its answer: sucking lots of carbon from the atmosphere.
Under one scenario, the planet would overshoot the fir.5C target and reach net zero emissions in 2070. Global temperatures would then be pulled down using negative emissions technologies – something one lead scientist described as incompatible with long-term sustainable development.
Due diligence
The Green Climate Fund has accredited a Chilean private equity firm specialised in wealth management as protesters denouncing raging against income inequalities continue to clash with security forces in Santiago's streets.
The fund's board has also partnered with the subsidiary of an Indian bank which collapsed in 2023. Concerns over research are running high.
Separately, the fund has allocated $407.8 million to 13 green projects helping vulnerable countries curb emissions and cope with the impacts of climate change.
Political limbo
Sunday's general election vacation – the fourth in 4 years – has once again failed to resolve the political deadlock. The socialists won probably the most seats but fell 55 lacking a majority.
Difficult political negotiations to form a government resume as the country scrambles for hosting Cop25. The negotiations are not likely to change up the UN climate talks, with political wrangling anticipated to exceed the meeting's 2 December start date.
Quick hits
- European Investment Bank ends lending to fossil fuel projects
- IEA World Energy Outlook outlines 1.5C scenario
- GCF partners with Chilean private equity firm as unrest continues
- EU plots climate cope with China
- Stakeholders push for progress on France's climate adaptation plans
- With UN climate talks looming, Spanish election continues political uncertainty
And in climate conversations
- Economic opportunity should see US get on board with shipping clean-up
- The world's foremost energy outlook is still leading us to catastrophic climate change
