European Investment Bank to cease funding fossil fuel projects by end-2021

The European Investment Bank said on Thursday it would stop funding fossil fuel projects at the end of 2021, a landmark decision that potentially deals a blow to billions of dollars of gas projects in the pipeline.

The bank's new energy lending policy, which it said was approved with "overwhelming" support, will bar most fossil fuel projects, including traditional use of natural gas.

"This is an important first step - this is not the last step," EIB vice president, Andrew McDowell told reporters in a call.

Under the new policy, energy projects applying for EIB funding will need to show they can produce one kilowatt hour of energy while emitting less than 250 grams of carbon dioxide, a move which bans traditional gas-burning power plants.

The policy raises new risks for the gas industry, which has more than $200 billion in liquefied natural gas projects...