Fossil gas is not a sustainable investment

A letter to the members of the Modernization Fund Investment Committee was co-signed by Green Tank, along with the European Environmental Bureau, CEE Bankwatch Network, Bomiasto, CAN Europe and Friends of the Earth Bulgaria.

In particular, the organizations called on to the Commission to reject funding for projects involving the use of fossil fuels. Fossil gas projects are clearly not in line with the European Green Deal and the European Union’s commitments, as they will slow down the beneficiaries’ course to climate neutrality and their Just Transition, locking them in fossil fuels for decades. This goes against the Union’s trend to increase its climate targets and ambitions, and, in the long run, will put many of its citizens at the mercy of energy market volatility, such as the ones we go through today. After all, the role of the Fund is to contribute to the modernization of the energy systems of the states and the achievement of their environmental and climate goals, by transitioning to clean energy, and all financial measures should be channeled in this direction.

The organizations stress the need for the Fund to fund only sustainable projects, compatible with the 1.5℃ target of the Paris Agreement, as well as to make investment submission and approval procedures more transparent, in order for the civil society to have a say.

The letter was sent on the occasion of the forthcoming meeting of the Commission for the approval of a number of projects from the Modernization Fund, which draws funds from the proceeds of the auction of carbon dioxide for the financing of projects for the modernization of energy systems in ten EU Member States, namely Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia.

You can read the letter sent to the Modernization Fund Investment Committee before its meeting on October 26, here.