13 February 2024
Why Beyond Fossil Fuels favours the 6:1 sustainable power supply to fossil fuel financing ratio
Europe’s power sector must transition to a renewables-based future, free from coal by 2030 and from fossil gas by 2035. These milestones are crucial in limiting global warming to 1.5°C and ensuring stable, affordable energy. Achieving this requires significant investments in wind and solar power, energy efficiency, storage solutions, and modernising and expanding electricity grids over the next few years.
In 2024, the Beyond Fossil Fuels (BFF) coalition intends to set the bar for financial institutions (FIs) on sustainable power finance. For banks to claim that they support the energy transition in a credible manner, they must adopt policies and targets in order to achieve a 6:1 financing ratio by 2030 in sustainable energy supply compared to fossil fuels, today. This means that for every euro spent on fossil fuels, six should be spent on sustainable energy supply, mainly for sustainable power generation, transmission and distribution.
