Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Wednesday, December 19, 2018 10:54:08 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

European public banks continue financing coal bonanza

By
08th-Oct-2018       
Comments
Share your thought
Post a comment »
Read all () »

Anna Roggenbuck :
After the signing of the Paris Agreement on tackling climate change, international public financing for coal-based electricity has become indefensible. And yet, major European public banks, including the European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD), have found a way to continue supporting the biggest polluters.
Every year, billions of euros are being transferred to fossil fuels-based energy corporations, thus effectively helping them sustain outdated energy systems against the economic and environmental interests of their customers.
A recent Bankwatch analysis showed that since 2013 the EIB has provided €3.9 billion to a number of coal-based energy companies, despite them having no plans to decarbonise. Similarly, the EBRD has extended unconditional loans to utilities which continue to develop new coal power capacities.
In Serbia, for example, EBRD investments in the national power utility Elektroprivreda, a company which dominates lignite mining and generates almost all of the country's electricity, were supposed to bring environmental improvements.
In reality, however, the company's energy-related greenhouse gas emissions have increased in recent years despite EBRD and EIB loans. And it keeps opening new mines to fuel its polluting coal power plants.
Both banks also regularly support Polish state energy companies such as Energa, PGE and Enea. Billions of euros intended to help the companies expand electricity grids, have in practice freed up cash for new coal power plants and other dirty investments.
In 2016, Energa and Enea decided on a joint investment in new, 1,000 MW coal capacities. A tender for the construction of the Ostroleka coal-fired power plant has already been completed.
In 2017, after Energa received EIB and EBRD loans for issuing of hybrid bonds for grid development, the company cancelled old contracts with renewable energy producers. Earlier in 2016, Energa and PGE invested €115 million each in the newly established Polish Mining Group, now the EU's biggest hard-coal miner.
Poland's 'last coal power plant' faces €1.7 billion loss, analysts say
The planned phase-out of state aid to fossil fuel power generation across the European Union could make the Ostroleka C coal station project unprofitable within years, according to a new report by Carbon Tracker, a think tank.
PGE, Poland's largest coal-heavy utility, is also one of the biggest polluters in Europe. Its Belchatow power plant alone emits as much mercury into the air as Spain's entire industrial sector.
But make no mistake - the company has no plan to comply with the Paris Agreement. Its capital expenditures in renewable energy decreased by 44% in 2017 compared to the year before, and it is currently developing new coal capacities and modernizing its existing, old coal fleet.
Some of the EBRD and EIB loans for grid expansion were supposed to facilitate renewables connectivity but this is only part of the picture. A small part indeed. Our analysis has found that out of a total of €1.5 billion the EIB has extended to Polish electricity utilities between 2013-2017, less than 1% was spent on renewable capacity or grid enhancement for renewable energy.
This is all the more surprising since the companies have been recently struggling with the increase of carbon price which is still expected to rise. Their customers will eventually bear the cost.
These cases illustrate that Europe's public banks must apply stricter due diligence in the interest of the environment and society. No loans should be granted to companies which intend to develop new coal-based heat and power capacities and which do not develop decarbonisation plans aligned with the Paris Agreement.
(Anna Roggenbuck is a campaigner at CEE Bankwatch, a network of grassroots, environmental groups in Central and Eastern Europe monitoring the activities of international financial institutions).

Tariff
Add Rate

News Archive

Inside The New Nation

Entertainment »

I always try to push negativity aside: Sunny Leone


Adult film star-turned-Bollywood actor Sunny Leone, who is often a target of sexist and disparaging remarks by people, says she is disturbed when "nonsense" gets highlighted."I always try to push negativity aside, but there are some things which I can't because I am also a human and I have feelings."I ...

Cricket »

Australia wins 2nd Test vs India by 146 runs, series 1-1


AP, Australia :Australia trounced India by 146 runs in the second Test to level the four-Test series 1-1 on the final day on Tuesday.Needing 287 runs to win, India resumed the day on 112-5 and was all out in a hurry for 140 in the second innings, and Australia was ...

Sports »

WTA changes rules affecting players returning from pregnancy


AP, St. Petersburg :The women's tennis tour approved rule changes Monday that are meant to ensure players are not penalized after they return from pregnancy or an injury that causes a long absence.The changes were prompted, in part, by the experiences of former No. 1 players Serena Williams and Victoria ...

Editorial »

The administration must prove its ability to hold free and fair polls


NEW United States ambassador in Dhaka Robert Earl Miller said that his country expected the upcoming December 30 elections in Bangladesh to be free, fair and credible as he paid a courtesy call on Prime Minister Sheikh Hasina. The US Ambassador informed the PM that his country would send 32 ...

Business & Economy »

Parveen Haque Sikder, EC Chairperson of National Bank Limited, inaugurating its 201st branch at Hili Land Port on Tuesday. Ali Haider Mortuza, Vice-President, other officials of the Bank, local businessmen and elites were also present.


International »

Former FBI chief lashes out at Trump, Republicans for telling `lies`


CNN, Washington :Washington (CNN)Former FBI Director James Comey slammed Republicans on Monday for not speaking out against President Donald Trump's attacks on the FBI and strongly defended the agency's conduct, following his second round of questioning at a closed-door congressional interview."Somebody has to stand up and speak for the FBI," ...

Chittagong »

A discussion meeting was held at Chattogram University of Engineering and Technology (CUET) marking the Victory Day on Sunday. Prof Dr Md Rafiqual Alam, VC of the University was present as Chief Guest.


City »

Vice-Chancellor of Dhaka University Prof Dr Akhtaruzzaman poses for photo session with the recipients of Provost Awards of Bijoy Ekattor Hall of DU in its auditorium on Tuesday.


Entertainment »

Ankhi Alamgir enthrals Kolkata audience


Entertainment Report :   In the beginning of current year popular singer Ankhi Alamgir performed in Utsab at Jodhpur Park in Kolkata. In the meantime, she also went to Kolkata for several times. On December 14, she got the opportunity to perform as a leading singer of Bangladesh at outdoor pool ...

Business & Economy »

Choudhury Atiur Rasul, Chief Financial Officer of Agricultural Marketing Company Limited (AMCL), a sister concern of PRAN Group, receiving the 'ICMAB Best Corporate Award-2017' in the Miscellaneous Manufacturing Category from Finance Minister Abul Maal Abdul Muhith, at a programme held at a hotel in the city on Saturday. Dr. M Khairul Hossain, Chairman of Bangladesh Securities and Exchange Commission and Suvod Kumar Karn, President of South Asian Federation of Accountants were also present.


.

Cricket »

Shakib Al Hasan plays a shot during the first Twenty20 International match between Bangladesh and West Indies at Sylhet International Cricket Stadium on Monday. Shakib scored 61 runs.


Cricket »

Fizz moves to top five in ODI rankings


Mustafizur Rahman has made a big leap to enter into the top five ranks of ICC ODI bowling rankings. Other Bangladeshi players have also made progress in the rankings after the end of Bangladesh-Windies ODIs.The Fizz moved five places to no.5 in the rankings. He has career-best 695 points against ...

Editorial »

Dhaka must involve ASEAN nations for early Rohingya repatriation


MALAYSIAN Prime Minister Mahathir Mohamad on Sunday asked the ASEAN nations to take tough measures for creating pressure on Myanmar and its de facto leader Aung San Suu Kyi to end atrocities against the Rohingya Muslims. More than 720,000 Rohingyas have fled Myanmar's strife-torn Rakhine State to Bangladesh since August ...

International »

Indian troops enforce lockdown to foil Kashmir public march


AP, Srinagar :Soldiers and police fanned out across Indian-controlled Kashmir on Monday to enforce a security lockdown for a second straight day to stop anti-India protests and foil a call by separatists for a march toward India's main military garrison in the disputed region.Government forces patrolled streets in the region's ...

Cricket »

Sri Lanka 275-9 at stumps on day 1, 1st Test vs New Zealand


AP, New Zealand :Tim Southee took 5-67 as New Zealand exploited an influential toss to contain Sri Lanka to 275-9 Saturday on the first day of the first cricket Test at the Basin Reserve.A late unbeaten half century by wicketkeeper Niroshan Dickwella helped swing the day a little in Sri ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news