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Page added on November 17, 2019

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Why Banning Fossil Fuel Investment Is A Huge Mistake

Business

Activist global warming strategies have now caused the European Investment Bank to ban its fossil fuel project funding. After more than a year of internal and external lobbying by several EU member states and an ever-growing list of activist NGO and pressure groups, the EIB has decided to cut its financial support for all new fossil fuel projects by 2021. It will also support €1 trillion of investments in climate action and environmental sustainability. This is meant to force European countries to put an end to new gas-fueled power projects and keep in line with the Paris Agreements and EU CO2 emission targets. EIB VP Andrew McDowell stated to the press that the EIB’s new energy lending policy, seen as a landmark decision, has been approved with “overwhelming” support. He reiterated that it will bar investments or financing for most fossil fuel projects, including those that employ the traditional use of natural gas.

There is still a small loophole for fossil fuel projects, as the EIB funding will still be available for projects that can show they can produce one kilowatt-hour of energy while emitting less than 250g of carbon dioxide. New technologies could therefore be the savior in the end for traditional gas-burning power plants.

The significance of this decision by the EIB cannot be understated. As a major financial institution, a wide range of energy-related projects inside and outside of the EU, such as gas pipeline projects in Central Asia, Turkey and the recent discussions on East Med offshore gas projects, are now being endangered. While various Green Parties and environmental NGOs are celebrating this move as a major victory, it is a victory that comes with some real risks. The decision, which was largely inevitable after that EU finance ministers unanimously agreed to initiate stricter measures to combat climate change, will put more pressure on all parties to phase out gas, oil and coal projects.

Non-EU projects will be hit hardest, as they will have a much more difficult time trying to find enough lending support for new projects. EIB support has always been an important piece of the energy puzzle, with third parties using it as leverage to arrange finance consortia to start up new gas-related projects.

The decision by the EIB and the EU finance ministers is very much a political one, not based on real assessments of the overall energy market situation inside of the EU, or taking into account economic and geopolitical risks for the regions bordering the EU. Brussels has, for decades, been targeting a higher level of security of energy supply (mainly gas) in order to wean Europe off its Russian gas addiction. This strategy has been far from a success story, with European countries today seemingly more addicted than ever to Russian gas.

Official figures from EuroStat show that natural gas dependency in EU reached an all-time high of 77.9 % in 2018, up from 74.4 % in 2017. While core EU gas consumption is slightly down, imports will have to increase as European gas production is decreasing (Groningen, North Sea). To decrease dependency on Russia, other sources will be needed. Those new sources would normally be supported by the EIB, a support that is now coming to an end in 2021.

At the same time, experts seem to agree that the best way to target lower CO2 emissions in the EU is to substitute oil and coal power generation in Eastern Europe with natural gas. At present these traditional power plants are struggling to find gas supplies. For a functional Paris Agreement strategy to be enacted, natural gas demand must increase. Additional transport infrastructure is also needed, but this decision by the EIB will also impact that.

Even in the most optimistic projections, renewable energy options, such as wind or solar, are not going to be able to counter the need for power generation capacity. If the EIB blocks a soft energy transition via natural gas, the Paris Agreement will almost certainly fail.

Another concern that the EIB seems not to have considered is that the removal of financial support for natural gas related projects in the Mediterranean or Central Asia/Caucasus will challenge the security of supply in the region. The EIB’s economic support has been crucial for key energy projects outside of Europe, not only supplying additional volumes to the EU but also increasing economic growth in politically fragile countries. Energy infrastructure connections also link regions, such as Algeria-EU, Azerbaijan-EU or East Med. Without these viable economic and strategic options available, Western Europe’s renewable energy sector will get maybe a boost, but the security, stability and security of energy supply to Eastern Europe and others will be threatened. The current European focus of energy producers in the Mediterranean and Central Asia can easily shift from West to East if incentives disappear. The EIB’s latest decision may appear sensible on the surface, but the geopolitical and economic fallout of this new policy will likely be disastrous.

By Cyril Widdershoven for Oilprice.com

 



90 Comments on "Why Banning Fossil Fuel Investment Is A Huge Mistake"

  1. Robert Inget on Wed, 20th Nov 2019 2:45 pm 

    (not prone) to dismiss a president, Sorry.

  2. Cloggie on Wed, 20th Nov 2019 8:42 pm 

    Those fantasy plans are going to need many times the amount of High voltage transmission lines along with many other storage strategies all costing enormous amounts and requiring centralization. That is in addition to enormous amounts of solar panels and wind turbines. REAL Green is pro decentralization but acknowledges the consequences which means a severely limited world in regards to productivity and output. FAKE Green is pro tech and pro big interconnected complicated systems. Just ask the board techno optimist the cloggo.

    Fascinating to see how a guy, whose ambition level is largely exhausted by hanging out with goats, yet tries to bluff himself into energy engineering.

    It is absolutely not certain that the future energy base is going to be old-school centralized. We are no longer talking about your typical run-of-the-mill 1 GW power station, fossil or nuclear, no we are talking about 10 MW wind turbines and 400 Watt solar panels and/or collectors. If this is going to work…

    https://deepresource.wordpress.com/2019/11/19/breakthrough-in-electrolyzer-technology/

    …and I am pretty confident something like this will work, nothing will stand in the way of a decentralized energy system, with batteries losing from fuel cells after all. Poor VW.

  3. Davy on Thu, 21st Nov 2019 5:27 am 

    “Fascinating to see how a guy, whose ambition level is largely exhausted by hanging out with goats, yet tries to bluff himself into energy engineering.”
    Cloggo, you know next to nothing about farming. I have a multi-species grazing system that is intensively managed with rotation to improve pasture health and yields. Goats and cattle do this. I have a similar amount of stocking of both in regards to grazing results but they both graze different spectrum of plants. My pastures are polycultures of grass, weeds, and brushy plants. I have natural carbon capture and a robust solar system at my house and barn. I am not just a panel on the roof guy like you. I am off grid capable but also utilize the grid. The system is hybrid and this makes it much more energy secure and capable. I gather electrons and I harvest them. That is real energy engineering not the FAKE Green kind you inhabit. I know plenty about energy engineering because I have been studying it daily now for years. The bluff is with you and your 100% energy transition that will likely never happen. You are constantly struggling to stay optimistic and continually come up with new technologies that will save us. You don’t realize this is much more than technology.

    “It is absolutely not certain that the future energy base is going to be old-school centralized. We are no longer talking about your typical run-of-the-mill 1 GW power station, fossil or nuclear, no we are talking about 10 MW wind turbines and 400 Watt solar panels and/or collectors. “Breakthrough in Electrolyzer Technology” If this is going to work……and I am pretty confident something like this will work, nothing will stand in the way of a decentralized energy system, with batteries losing from fuel cells after all. Poor VW.”
    Cloggo, it will be a little of both but it is pretty apparent if costs are going to be kept down there will have to be centralization with huge distances traversed by hi power lines. Decentralization would work much better if we had a REAL Green world but instead, we have your FAKE Green world of people wanting high energy 24/7/365 coupled with growth of more consumption and affluence. REAL Green says these wonderful techs can help us and mitigate but not save us. We need lots of them to give us a life boat to less.

  4. Richard Guenette on Thu, 21st Nov 2019 10:18 am 

    Hey Davy, you always talk about having a goat farm. Prove it.

  5. Richard Guenette on Thu, 21st Nov 2019 10:48 am 

    What’s stopping developing countries from using other natural resources for energy (such as peat)? Renewable energy comes from minerals in the ground and don’t last forever.

  6. JuanP sock on Thu, 21st Nov 2019 10:56 am 

    stupid, man up and come out from behind your lunatic socks.

    Richard Guenette said What’s stopping developing countries from us…

  7. Richard Guenette on Thu, 21st Nov 2019 11:02 am 

    I am thick-skinned and fearless.

  8. Davy on Thu, 21st Nov 2019 11:21 am 

    I am a lunatic and my widdle feelings get hurt real easy.

  9. Cloggie on Fri, 22nd Nov 2019 12:43 pm 

    Austrian steel plant introduces green hydrogen in production cycle:

    https://cleantechnica.com/2019/11/20/hydrogen-in-fossil-fuel-out-for-leading-steelmaker-eventually/

    “Hydrogen In, Fossil Fuel Out For Leading Steelmaker, Eventually”

    It is done within an EU-funded program:

    https://www.h2future-project.eu/

  10. Cloggie on Fri, 22nd Nov 2019 12:56 pm 

    “Yabut you need fossil fuel for EVERYTHING!”

    No you don’t:

    https://deepresource.wordpress.com/2019/11/22/green-hydrogen-in-european-steel-production/

    “Green Hydrogen in European Steel Production”

  11. Duncan Idaho on Fri, 22nd Nov 2019 1:05 pm 

    “We gotta find a way off this goddamn cop-ridden planet.”

  12. Duncan Idaho on Fri, 22nd Nov 2019 1:06 pm 

    “In a society that abolishes adventure, the only adventure is the abolition of society.”

  13. Cloggie on Fri, 22nd Nov 2019 1:12 pm 

    “Dutch space technology ‘game changer’ for pollution detection”

    https://www.dutchnews.nl/news/2019/11/dutch-space-technology-game-changer-for-pollution-detection/

    Dutch-Canadian researchers are able to detect gasleaks from space, in casu Turkmenistan.

  14. I AM THE MOB on Fri, 22nd Nov 2019 1:29 pm 

    Fuck off cloggo. Stupid carnival barker

  15. Cloggie on Fri, 22nd Nov 2019 1:36 pm 

    “Fuck off cloggo. Stupid carnival barker”

    Quite the debater, our chosenite here.
    No arguments, cornered, wounded animal.

  16. Davy on Fri, 22nd Nov 2019 4:09 pm 

    “I have a multi-species grazing system that is intensively managed.”

    I forgot to add that by employing telepathic command technology I’m able to send commands to my solar powered farm robots (they look so cute in bib overalls) to intensively manage my doomstead in Missery while I tend to my old lady’s hot flashes in Italy during the summer months.

  17. JuanP junk on Fri, 22nd Nov 2019 6:13 pm 

    we have full stupid out of juanPee

    Richard Guenette said Our bodies are a furnace; the body burns what we e…

    Richard Guenette said Americans should stop blaming China when it comes…

    Richard Guenette said Nobody owes the US anything.

    Richard Guenette said The rest of the world needs to stay calm, exercise…

    Davy said “I have a multi-species grazing system that…

    full woke supremacist muzzies jerk maximum newspeak double rainbow all the way across the sky so intense OMG whoa it begins to look like a triple rainbow what does it mean WDIM ooooh god ooooooHHH said i find whitey supertard jay hanson death suspiciou…

    Davy said Just so y’all no. Prickface is kinda like cu…

    cuntface

  18. Davy on Fri, 22nd Nov 2019 8:41 pm 

    I’se bin wurkin on some new REAL Bad cussin wurds.

    What does y’all think about penise nose, or vagina hair?

    Working real hard doing my best to keep with my childlike mentality.

  19. Davy on Fri, 22nd Nov 2019 8:43 pm 

    cuntface doesn’t seem to be wurkin to well.

    Being the moron I am. I have no idea why?

  20. JuanP ID theft on Fri, 22nd Nov 2019 8:49 pm 

    Wads da madder widdle Juanita are your panties in a wad?

    This is from stupid:
    Davy said cuntface doesn’t seem to be wurkin to well. Being…

    Davy said I’se bin wurkin on some new REAL Bad cussin wurds….

  21. Davy on Fri, 22nd Nov 2019 8:55 pm 

    Cuntface, prickface, fucknut, and fuck and cunt everything are all my trademarks juanpee. Y’all can’t expect any thing more from a deviant mentle deviant like me.

    I can’t help myself.

    dumbass

  22. Davy on Fri, 22nd Nov 2019 8:57 pm 

    I just can’t figger it out. Why does everybody I meat say i’m Such a dumbass?

  23. JuanP ID theft on Fri, 22nd Nov 2019 9:00 pm 

    This from stupid:

    Davy said I just can’t figger it out. Why does everybody I m…

    Davy said Cuntface, prickface, fucknut, and fuck and cunt ev…

    The fuckwack is woke tonight

  24. More Insane Juanpee garbage on Fri, 22nd Nov 2019 9:03 pm 

    This from stupid:
    Davy said I just can’t figger it out. Why does everybody I m…
    Davy said Cuntface, prickface, fucknut, and fuck and cunt ev…
    The fuckwack is woke tonight….

  25. Davy on Fri, 22nd Nov 2019 9:17 pm 

    I’m not real sure but I mite of bifurcated in my widdle panties again. I hate when that hapens.

  26. Davy on Fri, 22nd Nov 2019 9:23 pm 

    For anyone that cares, and deep down I no nobody does, i’m Tucking my widdle dumbass in fer the nite.

  27. DavyTurd Blossom on Fri, 22nd Nov 2019 9:23 pm 

    To all you guys trying to bring me down:

    If Juanpee says I am stupid, then I reply:

    I know you are but what am I?

    If Juanpee tries to be clever thinking I’m gonna say I know you are but what am I, and he says smart and popular, then I reply:

    I know I am but what are you?

    See how really smart I am?????

  28. Davy on Fri, 22nd Nov 2019 9:27 pm 

    This song on YouTube is made special for Juanpee.

    https://www.youtube.com/watch?v=lrWGbsEMr5I

  29. Davy on Sat, 23rd Nov 2019 2:02 am 

    And this song on You Tube is made special for idiots like me.

    https://m.youtube.com/watch?v=Ee_uujKuJMI

  30. JuanP ID theft on Sat, 23rd Nov 2019 2:49 am 

    This is from stupid. His widdle feeling are still hurt after 2 years. Why, because he was told he can’t tell people what to do.

    Davy said And this song on You Tube is made special for idio…

    Davy said This song on YouTube is made special for Juanpee….

    DavyTurd Blossom said To all you guys trying to bring me down: If Juanpe…

    Davy said For anyone that cares, and deep down I no nobody d…

    Davy said I’m not real sure but I mite of bifurcated in my w…

    More Insane Juanpee garbage said This from stupid: Davy said I just can’t figger it…

  31. Davy on Sat, 23rd Nov 2019 2:59 am 

    I asked you real polite like 3 times not to cum in my mouth juanpee, but you did it anyways. no Going back now.

    stupid

  32. JuanP ID theft on Sat, 23rd Nov 2019 4:28 am 

    more mindless stupid, sorry visitors stupid is mentally ill and has a psychopathic personality. We are stuck with him because this is an unmoderated form he is obsessively attached himself to as the forum troll. He does ID theft and lunatic sock puppets. Ignore him someday he will go postal hopefully on himself.

    ID theft:
    Davy said I asked you real polite like 3 times not to cum in..

  33. Davy on Sat, 23rd Nov 2019 8:21 am 

    Oops, sorry again y’all for being a dumbass again.The only visitors here our me and two of my arch enemies. MOB and cloggo.

    I runned every one else away.

  34. Richard Guenette on Sat, 23rd Nov 2019 6:58 pm 

    Green living is not as clean as we are told.

  35. Richard Guenette on Sat, 23rd Nov 2019 7:36 pm 

    What ever happened to freedom of expression? Liberals are twisting it to suit themselves.

  36. Richard Guenette on Sun, 24th Nov 2019 10:31 am 

    Banning fossil fuels will lead to economic problems. And “clean” energy is superficial- it comes from minerals (rare earth metals, copper, cobalt etc). from other countries.

  37. JuanP stupidity on Sun, 24th Nov 2019 11:34 am 

    This is stupid’s ID theft
    Davy said Hay, wait a minute? May be JuanPees real name is R…
    More Davy Mindless Stupidity said JuanP trash on Sun, 24th Nov 2019 10:18 am

    This is stupid mindless sock Richard who was Gaia who was Kenz300:
    Richard Guenette said Our leaders should stop pandering to the environme…

    Richard Guenette said Banning fossil fuels will lead to economic problem…

    Richard Guenette said I’ve done my research, people.

    Richard Guenette said People have talked about the fact that wind solar,…

    Richard Guenette said While electric cars don’t emit exhaust fumes…

    Richard Guenette said There are chemicals in our food, water, clothing,…

    Richard Guenette said Fertility rates are dropping. I think chemical and…

  38. Endless Davy Stupidity on Sun, 24th Nov 2019 12:11 pm 

    JuanP stupidity said This is stupid mindless sock Richard who was Gaia who was Kenz300.

    It’s enough to drive widdle dumbass Davy crazy.

  39. Davy on Sun, 24th Nov 2019 12:50 pm 

    Stupid, being stupid gets old but not that big an issue. Nothing like the mindless triggering you go through daily. It is my pleasure to expose your stupidity and mental illness. You lost JuanP take it like a man.

    Cuntface

  40. Davy on Sun, 24th Nov 2019 12:54 pm 

    We all no i’m real triggered when I use the cuntface wurd. It’s a real bad cussin wurd.

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