Heavy investments in fossil fuels by international financial institutions (IFIs) in the Western Balkans are hindering these countries’ compliance with EU accession requirements, finds a new report - “Invest in Haste, Repent at Leisure” - from civil society organizations CEE Bankwatch Network, SEE Change Net and WWF, created as a part of SEE SEP (South East Europe Sustainable Energy Policy) programme.  

The report finds that Europe’s development banks are spending 32 times more on fossil fuels than renewable energy sources not related to hydropower.

This trend means that the Western Balkan countries are heading in the opposite direction of the EU goals on climate change for the years 2020, 2030 and 2050, an eventual requirement for these aspiring EU countries.

The groups are calling for a halt to international public investments in fossil fuels and the rapid ramping up of efforts on residential energy efficiency and energy savings.

The report also shows that: 

• Almost half of the EBRD’s energy lending – the largest public lender in the region – has supported fossil fuels, with only two percent of its portfolio allocated for non-hydropower renewable energy sources, and a further 23 percent supporting hydropower. 

• Fossil fuels account for 36 percent of all IFI energy financing in the region, or EUR 597.3 million, with hydropower receiving EUR 310.1 and renewable sources just EUR 18.5 million, or 1 percent; and

• Energy efficiency, which has a high potential to address energy poverty in the region and prevent new environmentally-impacting infrastructure, makes up only 17 percent of the IFIs’ energy portfolio, or EUR 288.8 million.

 [Press release - SEECN, CEE Bankwatch, WWF - Brussel, 25^th June 2013.]