Member of:
Visitors:
News
06.07.2010
European public banks need to do more on renewables and energy efficiency in southeast Europe says new Bankwatch study
A new Bankwatch study urges the international financial institutions (IFIs) to reverse the trend towards investments in climate-damaging fossil fuel projects and step up their financing for new renewables and energy efficiency in the region.
The report finds that 50 percent of the European Investment Bank’s energy investments in the region in the period 2002-2009 were for fossil fuel projects, with only nine percent for energy efficiency and renewables. 52 percent of the European Bank for Reconstruction and Development’s energy investments were for fossil fuel projects, with 28 percent in renewables and energy efficiency. The vast majority of the EBRD renewables and energy efficiency investments have been carried out in Bulgaria, with very few in the Western Balkans so far.
The IFIs, like other investors, point to legislative and administrative barriers to new renewables and expect that investment will increase as soon as these are removed. However the study argues that, rather than waiting for investment climates to change, as investment leaders promoting new developments and creating precedent cases the IFIs should do more to support pioneering projects in the region and through these promote the improvement of the permitting processes and incentive mechanisms.
The study also recommends that IFIs broaden their energy efficiency investments in the residential and public buildings sectors, shift lending away from fossil fuel and large hydropower projects, and provide support for local renewable technology producers in order to provide workplaces and increase the accessibility of the technologies in the region.
The study is available at this link