October 31, 2012 Mr Werner Hoyer, President of the European Investment Bank European Investment Bank 100, Bd Konrad Adenauer L-2950 Luxembourg Luxembourg
Dear Mr Hoyer,
To date the EIB has made good progress in increasing the amount of low carbon investment it undertakes, reaching 30% of the overall portfolio in 2011. However, we note that on September 20th 2012 questions were posed to you by members of the Economy and Monetary Affairs Committee at the European Parliament regarding the European Investment Bank’s future role in financing coal-fired power plants. We also note that in response you stated that the EIB might have a role to play in supporting coal investments, and that this reflected the often contradictory needs and positions of the Member States. We find this alarming. Research recently published by world-renowed climate science expert Dr James Hansen indicates that the planet is warming much faster than anticipated. This year alone we have seen the lowest levels of Arctic ice coverage ever recorded combined with the most widespread drought in the USA in 50 years, record wildfires and thousands of temperature records broken. Europe has been a global leader in tackling climate change. In December 2007, 27 Member State Governments endorsed the Europe 2020 Strategy which set out 2020 targets to: • reduce carbon emissions by 20%; • increase energy efficiency by 20%; and • ensure 20% of electricity generation is from renewable sources.
More recently, the Energy Roadmap 2050 have set out the need to reduce EU emissions by 80% in 2050. While a single Member State veto means that the Conclusions were not formally agreed, 26 other Member States did back the conclusions and the objectives still stand as EU Policy. While we understand energy security is a concern, it is possible to reconcile these needs with climate protection through the financing of climate-friendly technologies. The message from the climate science is clear: the EIB, as the EU’s policy bank must take a stronger lead. It must play a key role in catalyzing the increased investment needed in Europe’s low carbon economy and in ensuring the EU maintains an effective response to the climate imperative. We therefore challenge the EIB to do more. There should be a presumption by the EIB against investment in high carbon assets unless it can be proven they do not lead to a high carbon trajectory and so jeopardise Europe’s 2050 decarbonisation objectives. As the EIB undertakes its Energy Policy Review we ask you to consider these issues – and seize the opportunity to build on progress made to date and become Europe’s catalyst to deliver a truly sustainable and energy-secure economy. Yours sincerely,
Ingrid Holmes, Programme leader, Low Carbon Finance, E3G;
Sean Kidney, Chair, Climate Bonds;
Stephen Tindale, Associate Fellow, Centre for European Reform;
Huub Scheele, Programme Officer, Both Ends;
Regine Richter, Urgewald;
Ronack Monabay, Les Amis de la Terre France;
Xavier Sol, Project Coordinator, Counter Balance;
GĂŠnon Jensen, Executive Director, Health and Environment Alliance;
Katharina Reuter, Coordinator, Climate Alliance Germany;
Miodrag Dakic, Energy and Climate Change Program Coordinator, Center for Environment in Bosnia and Herzegovina
Garret Tankosić-Kelly, Principal South East Europe Change Net;
Christoph Bals, Policy Director, Germanwatch;
Anna Roggenbuck, EIB Campaign Coordinator, CEE Bankwatch Network