The European Investment bank (EIB) is the world’s largest multilateral borrower and lender. It provides finance and expertise for sustainable investment projects and closely cooperates with  EU institutions in the implementation of European policy. Climate change is one of the top priorities of the EIB and the bank presents itself as a key player in mobilizing finance needed to achieve the Paris Agreement commitment from keeping global warming to 1,5˚C. The EIB dedicates 25% of its lending to encourage the shift to more climate resilient and low-carbon economy.[1] During the One Planet Summit in December 2017, the EIB reiterated its commitment to back investment in transformational projects that cut emissions and address a changing climate.[2]

The Trans Adriatic Pipeline (TAP) is the Western part of the Southern Gas Corridor which is aimed to bring natural gas from the Caspian region to Europe starting from the Azerbaijan’s Shah Deniz II offshore gas field. The Southern Gas Corridor is designed to pump 10 billion cubic meters of gas to Europe annually.[3] TAP goes from the Greek/Turkish border to Italy through Albania and will be 878 kilometers in length (Greece 550 km; Albania 215 km; Adriatic Sea 105 km; Italy 8 km).[4]

The European Commission considers the Southern Gas Corridor as a strategic priority project. In the 3rd Report on the State of the Energy Union, the Commission expressed its determination to actively engage with all the stakeholders involved in the development of the Corridor in order to enable gas to flow to Europe by 2020.[5] In addition, the TAP project has been included to the European Commission’s list of projects of common interest.[6] In order to support the TAP project, the European Commission Vice-President for Energy Union Maroš Šefčovič Miguel and the European Commissioner for Climate Action and Energy Arias Cañete in July 2017 wrote a letter addressed to the President of the EIB Werner Hoyer to emphasize the importance of TAP for the European energy strategy.[7]

The TAP project is criticized by various NGOs for the environmental impact of the pipeline. According to Xavier Sol, the director of Counter Balance: 

The EU, which considers itself a climate action champion, simply cannot afford its financial arm, the EIB, supporting any component of the Southern Gas Corridor.[8] 

NGOs claim that the loan would be inconsistent with the EIB’s attendance at the One Planet Summit in Paris.

The EIB was expected to decide on the €1.5 billion loan for Trans Adriatic Pipeline on the day of the One Planet Summit in December 2017. However, according to Counter Balance, a network of European NGOs, the EIB postponed its decision. The EIB is expected to discuss the loan for the TAP project again in 2018.

The gLAWcal Team

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[1] Climate in everything we do. EIB. Available here .

[2] EIB at One Planet Summit. Available here .

[3] Gas and oil supply routes. European Commission. Available here .

[4] Trans Adriatic Pipeline route. TAP. Available here .

[5] 3rd Report on the State of the Energy Union. European Commission. Available here .

[6] The Union List of Projects of Common Interest. European Commission. Available here.

[7] EU commission urged bank to support Azerbaijan gas pipeline. Climate House News. Available here .

[8] EIB accused of marring EU climate goals with €1.5bn gas pipeline loan. Guardian. Available here.