EIB Underestimated Climate Risks In Granting Loans To Southern Gas Corridor Projects -NGOs

Non-governmental organizations (NGOs) lodged a complaint on Thursday with the European Investment Bank (EIB), accusing the latter of failure to ensure a proper climate impact assessment when deciding on allocation of loans to two projects as parts of the Southern Gas Corridor (SGC)

MOSCOW (UrduPoint News / Sputnik - 07th February, 2019) Non-governmental organizations (NGOs) lodged a complaint on Thursday with the European Investment Bank (EIB), accusing the latter of failure to ensure a proper climate impact assessment when deciding on allocation of loans to two projects as parts of the Southern Gas Corridor (SGC).

The motion was filed by four civil society groups, namely CEE Bankwatch Network, Counter Balance, Friends of the Earth Europe and Re:Common. The complaint deals with the Trans Adriatic Pipeline (TAP) and the Trans Anatolian Pipeline (TANAP).

"An analysis undertaken by Bankwatch, Counter Balance, Friends of the Earth Europe and Re:Common reveals that the EIB substantially underestimated the greenhouse gas emissions associated with the project. In the case of the Trans Anatolian Pipeline, the bank's figures are 2.

5 times smaller than those calculated by the project consortium, and for the Trans Adriatic Pipeline the emissions estimated by the bank are 3.5 times smaller," the Friends of the Earth Europe said in a press release.

In 2018, the EIB approved 2.4 billion Euros ($2.7 billion) in loan for the TANAP and a loan worth 1.5 billion euros for the TAP.

The over 3,500-kilometer (2,174-mile) SGC comprises three inter-connected pipeline projects, namely the South Caucasus Pipeline (SCPX) running from Azerbaijan and through Georgia, the TANAP running across Turkey, and the TAP crossing Greece and Albania, and ending in southern Italy. The first two pipelines have already been constructed, while, the TAP is expected to start its operation in 2020.