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.
Worldwide demand for natural gas is growing, and there is currently no shortage of supply. Moreover, as alternative energy sources become more affordable, the price pressure and competition are likely to remain fierce. In fact, the natural gas price forecast for the next three years shows a flat trend with no significant upside potential.
President Klaus Iohannis said, on Thursday, at the inauguration of the natural gas compression station Podisor, in Giurgiu County, that the energy sector has been severely disrupted in the past year by hazardous measures, such as Ordinance 114, and stressed that the zero emergency is repairing the "evil caused". "It is indisputable that, in the energy field, Romania enjoys certain advantages.