EBRD undermines Slovenian climate targets and governmental review with 200 million euros for dirty coal project

Ljubljana, Slovenia -- Campaign groups today lambasted the European Bank for Reconstruction and Development's (EBRD) signature of a 200 million euros loan for the Sostanj thermal power plant in Slovenia [1], calling it a blatant affront to Slovenia's long-term climate targets. The signing also fails to await the outcome of a governmental review of the controversial project, expected in mid-February.

The criticisms by CEE Bankwatch Network and Slovenian NGO FOCUS of yesterday's decision focus on claims by the EBRD and other institutional lenders like the European Investment Bank that the project will help bring Slovenia in line with binding emissions reduction targets of the European Union. While frequently citing that the new block is planned to reduce emissions per kilowatt-hour for the power plant as a whole, the fact that the new block would lock Slovenia in to heavy carbon use beyond 2050 is overlooked.

As the director of the Slovenian Government Office for Climate Change Jernej Stritih has admitted, projected carbon dioxide emissions from operation of Unit 6 at Sostanj would swallow Slovenia's entire eligible greenhouse gas emissions within planned reduction targets for 2050 [2]

"The EBRD and the Sostanj management are clearly in a hurry to present a fait accompli with this unpopular project" said Piotr Trzaskowski, energy and climate coordinator for Bankwatch. "The Slovene Minister of the Economy has commissioned a full review of the investment, to disclose all the relevant information and make a final decision on the project, with a report due in mid-February. The project was supposed to be on hold until then, so why has the loan agreement now been signed?"

The loan forms part of a larger 1.2 billion euros project to replace five existing low efficiency units with a new 600 megawatt (MW) sixth unit, powered by one of the least efficient and most polluting energy sources, lignite.

For more information

Piotr Trzaskowski, Energy and climate coordinator, CEE Bankwatch Network
Tel: +48 509162988
piotr.trzaskowski AT bankwatch.org

Lidija Zivcic, Senior expert, FOCUS association for sustainable development
Tel: +386 15154080
lidija AT focus.si

Notes for editors

1. The Slovenian state-owned Termoelektrarna Sostanj thermal power plant is comprised of four existing lignite-powered generating units and two gas turbines, with total 809 MW installed capacity, accounting for one third of total electricity produced in the country.

2. In line with an EU-wide scenario of an 80 percent reduction of greenhouse gases by 2050 needed to keep global temperature increases below 2 degrees Celsius.