The European Energy Commissioner Kadri Simson, informed the European Committee on Industry, Research and Energy (ITRE) on December 5th 2019 that the European Investment Bank (EIB) ban on investment in new gas projects may be circumvented if the projects are approved on the 4th PCI list by the European Parliament. In a thinly-veiled threat to the European Parliament, Commissioner Simson also informed the committee that new "climate-friendly" projects on the 4th PCI list would not be eligible for CEF funding by the European Union if the list was not approved by the European Parliament. The implied threat is that "climate unfriendly" projects from the 3rd list such as the US fracked gas import project at Shannon LNG would still be able to apply for funding.
So much for the new European Green Deal.
The European Commission is already undergoing an internal review of its failure to assess the climate impacts of any of the gas projects on the PCI list, in breach of its legal obligations. DG Energy has very intelligently admitted its mistakes but, in a sleight of hand, assumes that the European Parliament will accept the illegally-approved 4th PCI list given that the Commission has promised to comply with the 5th PCI list (once it has changed the PCI Regulation of course).
We await the oversight of the European Parliament to see if MEPs will allow the climate-unfriendly US fracked gas import projects on the 4th PCI be approved without any of the legally-obliged sustainability/climate assessments.
Of course the greatest sleight of hand of all is that the Commission speaks only about access to funding for PCI projects as if that is the only advantage for developers whose projects are given PCI accreditation. The real advantage, however, is that all PCI projects must be considered to be of overriding public interest when they apply for development consent in the Member States. That means the gas PCI projects must get priority over even renewable energy projects in Member States. This is obfuscation being practiced by the developers, the Member States and the European Commission. Who will tell these people that the Emperor is not wearing any clothes.
Transcripts of statements by Energy Commissioner Kadri Simson.
The European Committee on Industry, Research and Energy meeting of December 5th, 2019.
"The European Investment Bank has adopted new financing guidelines which phases out financing of investments directly associated with unabated fossil fuels, including gas transmission infrastructure. But it is important to note that the bank may approve financing for natural gas infrastructure projects that are already formally under appraisal until the end of 2021. So, during this period the EIB can decide to finance any gas infrastructure projects of the 4th PCI list co-funded with EU budget. Thank you."
"There was a question what Parliament can do or what will happen with the 4th PCI list. I hope that you will approve this list. But Parliament may, under the Treaty, object to the entry into force of the Delegated Act by a majority of its components. And that means that [the] 3rd PCI list, which includes 40% more gas projects compared to this list, would remain in force. And that also will have direct negative consequences because in this list, in [the] 4th PCI list, we see many new climate-friendly projects such as North-Sea Wind Power hub and three new electricity smart grid projects, and if the 4th list is not approved, then they are not eligible for funding under the CEF. So, I truly hope that you will approve this list, and from my side I can offer close cooperation during the process of creating [the] 5th list. Thank you "
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