Earlier this week the European Investment Bank (EIB) published its proposed new assessment criteria for energy projects, which would see it still able to finance modern coal-fired combined heat and power (CHP) plants.
The new criteria proposes to screen out future lending to unabated coal and lignite-fired power plants by setting an Emission Performance Standard of 550 g Co2/kWh, bringing the bank’s lending criteria in line with the priorities of the European Union (EU).
The standard will be benchmarked to the emission reductions required by the EU Emission Trading Directive.
However, it is still expected to allow financing of some coal-fired power stations, such as high-efficiency CHP plants, as well as plants with carbon capture and storage or co-firing biomass.
The funding of coal-fired power projects by the EIB is controversial, with many environmental campaigners arguing that such funding is contrary to the EU bloc’s climate change goals.
The EIB Board of Directors is due to vote on the revised assessment criteris on 23 July 2013.
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