Press Releases
[Press release] Incinerators the wrong priority for EIB waste lending, finds new report
(May 30, 2008)
 Croatian NGOs protesting against financing of incineration projects in theior country |
Instead of backing much-needed waste prevention and recycling projects, the waste sector investments made by the European Investment Bank (EIB) - the EU's house bank - are largely supporting the highly controversial incinerator industry, according to a new report released today by CEE Bankwatch Network. Sixty-eight percent of the EIB's lending to the waste sector over the 2000-2006 period went to incinerator projects, according to findings contained in "Fuelling the Fire: European Investment Bank financing for the incineration industry". [1]
This 68 percent figure equates to EUR 992.6 million of support for incineration projects, even though incineration, along with landfill, is considered by EU policy to be the least preferable waste treatment method. Only EUR 30 million of EIB finance in the period went for composting, for one project, and EUR 17 million for two sorting centres for recycling.
The EIB's investments in this period included a highly unpopular incinerator as part of a waste public-private partnership scheme in Cornwall, UK, for which it approved a EUR 120 million loan in 2006. In spite of the EIB being bound to operate according to EU law, it did not wait for an environmental impact assessment (EIA) to be carried out before approving the loan.
The EIB has also expressed an interest in the controversial planned EUR 170 million Zagreb incinerator in Croatia, the EIA for which was approved without the legally required public consultation.
Pippa Gallop, Bankwatch's Research coordinator and author of the report, said: "No amount of re-branding as 'waste-to-energy' or 'thermal treatment' can hide the fact that incineration is the most irrational way to deal with material resources. Landfilling in the sky is no cleverer than doing it on the ground, plus it is more expensive and diverts resources away from developing truly sustainable solutions. The EIB must stop using public funds to bankroll the European incineration industry, and renew and publish its own waste sector investment policy."
Bankwatch's new report comes amidst heated negotiations between the European Parliament and the EU council of ministers on the Waste Framework Directive (WFD), and supports the position that compromise solutions will undermine the goal of the EU becoming a recycling society. Minimum 50 percent binding recycling targets for municipal waste by 2020 and no reclassification of 'waste-to-energy' (or incineration) as 'recovery' are crucial to achieving this goal.
Ivaylo Hlebarov, Bankwatch's coordinator in Sofia, Bulgaria and currently engaged in proposing environmentally and economically sound solutions to the ongoing Sofia waste crisis, said: "The top priority action supported by 55 percent of Europeans citizens to protect the environment is sorting waste so that it can be recycled. Watering down the WFD would go against the will of a majority of Europeans. The Parliament must remain firm and protect Europeans and their environment." [2]
Ivaylo Hlebarov
Waste campaigner, CEE Bankwatch Network
Tel: +359 898 252 303
Email: hlebarov at bankwatch.org
Greig Aitken
Media coordinator, CEE Bankwatch Network
Tel: +420 605 216 705
Email: press at bankwatch.org
Notes for editors
[1] The new report is available as a pdf download at the Bankwatch website.
The percentage figures and financial sums presented in the study were derived from information provided by the EIB following an information request made by Bankwatch regarding the bank's waste sector investments.
[2] The 55 percent figure is contained in a March 2008 survey conducted by Eurobarometer: "ATTITUDES OF EUROPEAN CITIZENS TOWARDS THE ENVIRONMENT", page 24.
This 68 percent figure equates to EUR 992.6 million of support for incineration projects, even though incineration, along with landfill, is considered by EU policy to be the least preferable waste treatment method. Only EUR 30 million of EIB finance in the period went for composting, for one project, and EUR 17 million for two sorting centres for recycling.
The EIB's investments in this period included a highly unpopular incinerator as part of a waste public-private partnership scheme in Cornwall, UK, for which it approved a EUR 120 million loan in 2006. In spite of the EIB being bound to operate according to EU law, it did not wait for an environmental impact assessment (EIA) to be carried out before approving the loan.
The EIB has also expressed an interest in the controversial planned EUR 170 million Zagreb incinerator in Croatia, the EIA for which was approved without the legally required public consultation.
Pippa Gallop, Bankwatch's Research coordinator and author of the report, said: "No amount of re-branding as 'waste-to-energy' or 'thermal treatment' can hide the fact that incineration is the most irrational way to deal with material resources. Landfilling in the sky is no cleverer than doing it on the ground, plus it is more expensive and diverts resources away from developing truly sustainable solutions. The EIB must stop using public funds to bankroll the European incineration industry, and renew and publish its own waste sector investment policy."
Bankwatch's new report comes amidst heated negotiations between the European Parliament and the EU council of ministers on the Waste Framework Directive (WFD), and supports the position that compromise solutions will undermine the goal of the EU becoming a recycling society. Minimum 50 percent binding recycling targets for municipal waste by 2020 and no reclassification of 'waste-to-energy' (or incineration) as 'recovery' are crucial to achieving this goal.
Ivaylo Hlebarov, Bankwatch's coordinator in Sofia, Bulgaria and currently engaged in proposing environmentally and economically sound solutions to the ongoing Sofia waste crisis, said: "The top priority action supported by 55 percent of Europeans citizens to protect the environment is sorting waste so that it can be recycled. Watering down the WFD would go against the will of a majority of Europeans. The Parliament must remain firm and protect Europeans and their environment." [2]
For more information
Ivaylo Hlebarov
Waste campaigner, CEE Bankwatch Network
Tel: +359 898 252 303
Email: hlebarov at bankwatch.org
Greig Aitken
Media coordinator, CEE Bankwatch Network
Tel: +420 605 216 705
Email: press at bankwatch.org
Notes for editors
[1] The new report is available as a pdf download at the Bankwatch website.
The percentage figures and financial sums presented in the study were derived from information provided by the EIB following an information request made by Bankwatch regarding the bank's waste sector investments.
[2] The 55 percent figure is contained in a March 2008 survey conducted by Eurobarometer: "ATTITUDES OF EUROPEAN CITIZENS TOWARDS THE ENVIRONMENT", page 24.
CEE Bankwatch Network gratefully acknowledges EU funding support.