Full Title: Gaslighting: Financing Fossil Gas Power is Leading Europe’s Energy Transition Astray
Author(s): Claire Maraval
Publisher(s): Reclaim Finance
Publication Date: April 5, 2023
Full Text: Download Resource
Description (excerpt):
Decarbonising electricity production by 2035 in Europe is a crucial lever for limiting global warming to 1.5°C. While half of Europe’s coal plants have been retired or are scheduled to be dismantled by 2030, there is still a long way to go in terms of fossil fuel phase-out in the power sector. Not counting the projects currently under development, 217 GW of gas plants must be phased out within that time frame. But over the past four years, financial institutions have acted against this transition, pouring hundreds of billions into companies responsible for Europe’s operational gas fleet and its expansion.
Barring swift action by financial institutions to radically restrict their financial services to gas power in Europe, they could contribute to the development of more than 63 GW of additional gas power capacity. Unless these assets are closed before the end of their lifetime – which would dramatically increase the level of stranded assets by 2035 – they will create massive carbon lock-in in Europe, placing a 1.5°C trajectory out of reach.
Financial institutions now face a choice: either go along with this hazardous expansion and pursue a financing strategy that intensifies the climate crisis, or assume a leading role in the European electricity transition by drastically reducing gas power financing and pushing the gas power industry to shut down fossil fuel infrastructure and switch to renewable energy.