Environmental Philanthropy: Stories to Inspire
Towards a fossil-free European Investment Bank
Our latest grant to Counter Balance, a European coalition of development and environmental groups, supported efforts to influence the European Investment Bank (EIB) to move away from investment in fossil fuels. We had previously funded Counter Balance for three years on a different project and found them to be highly effective in their area of expertise. The EIB is the financial arm of the European Union and the largest public investor in Europe. Counter Balance aimed to increase the EIB’s overall climate target and investments in renewables and energy efficiency, as well as bringing about the phase-out of fossil fuel investments in the EIB portfolio and the Investment Plan for Europe, setting a precedent for the greening of public banks.
Counter Balance mobilised and coordinated civil society organisations to respond to the EIB’ s Energy Lending Draft Strategy consultation. They targeted advocacy towards key institutions to gain support for fossil fuel divestment, as well as conducting an awareness-raising and media campaign that was highly effective. It had to be, as bank lending policy is a fairly dry topic for most people! Their work culminated in the EIB’s revised Energy Lending Policy Strategy in July 2019, now approved by the Bank’s shareholders, which will end all financing for fossil fuels beyond 2020. The new lending policy is also really positive in terms of supporting lending for renewable infrastructure projects and energy efficiency measures. The EIB is the first multilateral financial institution to make such a commitment in line with the Paris Agreement. This is a hugely significant change of policy for the bank and Counter Balance has high hopes that it will leverage a race to the top with other international financing institutions.
Supporting this campaign has been really satisfying because it is rare that sustained advocacy efforts can point so clearly to a policy win. It’s a real David and Goliath story – Counter Balance is a tiny organisation with a handful of staff whilst the EIB is backed by nation states.