The European Investment Bank (EIB) has announced that it will end all loans to oil and gas companies.

The EU lender said that while the group’s projects and operations are aligned with the goals of the Paris Agreement, there is still a question about whether the bank can support a green project with a corporation that continues to invest in high carbon activities.

“As one of the leading multilateral banks for climate action, we are further increasing our climate ambition,” said the EIB in a statement. "In general, EIB will no longer finance standard low-carbon projects of high-emitting corporations if the corporation continues to operate or invest in activities that are not aligned with the goals of the Paris agreement.”

The bank also announced that it will triple climate adaptation finance.

The EIB Adaptation Plan supports the objectives of the European Union Adaptation Strategy inside and outside the EU. The EIB pledges to increase the share of adaptation support to 15 per cent of the bank’s overall finance for climate action by 2025.

This represents an almost three-fold increase compared to adaptation finance over the past five years.

The organisation has pledged to screen all projects it finances for the risks of climate change and ensure they are adapted to future changes.

“At the EIB Group, we have heard the warnings,” said EIB president, Werner Hoyer. “As one of the leading multilateral banks for climate action, we are further increasing our climate ambition.

“We listened to the calls from the COP26 Presidency and the international community on how public banks must do more to help save the planet from global warming. We stand ready to work with our partners to increase our joint impact, and respond to the calls from the COP26 Presidency and international community.”

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