New Draft EIB Energy Policy Revision: The Case of Gas

09 Oct 2019

Read on Twitter:

Thanks @SamJamesMorgan for an update on the ongoing @EIB and @EU_Commission climate debate


A summary thread, comments and questions 👇


Main Takeaways

It’s all about the money –> (a) ambition discussion + (b) link with @EIB : gas gets more attention

Discussion on ambition : it’s all about the money

(a) ambitious NDC draft revised to “in 2020, the EU will update its NDC”

& BG, CZ, HR, EE, GR, HU, LT, MT, PL and RO blocked efforts for more explicit language

But: @vonderleyen pledged to increase NDCs to 50% and to bump it up to 55% when appropriate, @MAC_europa reiterated EU is de facto on course to 45 % reduction

PL/CZ argue for more money. @EIB will finance up to 75% of projects by poorer member states rather than the usual 50%

Revised EIB Energy Lending Policy : introduction of emission standard and gas projects

(b) Debate revised @EIB energy lending policy

First draft thread : + blogpost

Notable changes now [

(b*) Reaction of 60 NGOs ( :

The problems with gas

(a) Mentioned by NGOs : 4th list of projects of PCIs “will be financed irrespective of new lending policy criteria” -> loophole

(b) Cost benefit assessment of @ENTSOG can be used, instead of @EIB 🤔🧐 []


Despite reservations on @EIB CBA [see for full argumentation], @ENTSOG CBA [] has an even more fundamental problem []:

“CO2 benefits” only compared to gas, no renewables!

Cancels out any reasonably comparison

Comments and reflections

250 CO2/kWh reasonable?

(a) Although also political (and dependent on calculation, future weather,…), how “wrong” (or right) is a ‘250 CO2eq/kWh over project lifetime’ financing threshold, according to recent cost/technical estimates?

@AukeHoekstra @nworbmot @mzjacobson

Importance of carbon costing narrative in policy

(b) To the collective IAM/”carbon costing” community - despite fundamental flaws (ex. @ENTSOG CBA☝️), please watch out together on how these costs are used

ex. @EIB :

@KevinClimate @NB_pik @jessicadjewell @ChristianOnRE @BjarneSteffen @MaxJerneck

22/11/2019: Update on different emission standards (EIB, Sust. Finance Taxonomy, NGOs)

NGOs call power sector emission standard in the EU Sustainable Finance taxonomy of 50gCO2/kWh instead of 100gCO2/kWh []. Statement 9/2019:

Why is @EIB proposing 250gCO2/kWh?

17/12/2019: Update on EIB argumentation emission standard

Argumentation @EIB on emission standard of 250 gCO2/kWh in final energy lending policy 15/11/19 [, p27]:

“level is above proposed #SustainableFinance #Taxonomy benchmark but enables the bank to focus on projects needed over the long term […]”