Copublished with Beyond Fossil Fuels
Immediate release, 9 April 2025 – Banks and investors are urged to reconsider their support for some of the biggest European power utility companies, after analysis by Reclaim Finance and Beyond Fossil Fuels revealed that none of the ten companies were on track for net zero (1). All ten European power utilities plan to carry on burning gas past 2035 (2), with seven planning to develop new gas-fired power stations. The civil society organisations are urging the companies to move beyond gas and call on banks and investors to push those companies to adopt credible transition plans ensuring the decarbonization of the power sector.
Not one of the ten European power companies (3), analyzed for the new Power Transition Tracker, has published a clear plan to transition away from fossil fuels, and seven of the companies intend to carry on burning gas well into the future, including building new gas-fired power stations in Europe, even though the role of gas in Europe must be significantly reduced in the near future.(4)
In total, the seven utilities (EPH, ENGIE, Enel, RWE, PGE, A2A and SSE) plan to build or are already building at least 37 new gas-fired plants, with financial support from major European banks and investors including Barclays, BBVA, Société Générale, ING, NatWest and PKO Bank Polski (5). This will result in more than 25 gigawatts (GW) of new fossil gas capacity.
All but one of these planned plants are in Europe. Recent analysis from the independent think tank Ember points out that by 2030, a significant portion of the European fossil gas capacity could be under-utilised, while diverting financial resources away from long-term investments in renewable energy and efficiency measures (6).
In all International Energy Agency (IEA) scenarios, the peak demand for fossil gas, including for electricity production, is expected before 2030 (7). This is especially the case in advanced economies where demand is already decreasing (8). Hence, building new gas plants, whose lifespan ranges from 25 to 40 years, is incoherent with this trend, especially in areas like Europe.
Power companies in Europe are betting on gas as a generating fuel for the future, with no clear plans to transition away from fossil fuels. This on-going dependence on gas is incompatible with tackling the climate crisis, aggravating the extreme weather conditions already being faced. The banks and investors supporting these power companies are complicit in the destruction of our climate and must end their support for fossil gas now.
Pierre-Alain Sebrecht, analyst at Reclaim Finance
Local communities are warning that new gas-fired power stations pose a risk to people’s health as well as serious local and global environmental impacts, resulting in opposition at many of the planned sites.
EPH is planning to convert a coal-fired unit to gas in Fiume Santo in Sardinia, Italy, generating 560 MW. The project has been delayed due to questions about Sardinia’s transition, including related plans to develop a gas network and build two Floating Storage and Regasification Units (FSRU) for LNG import/export (9).
ENGIE is also facing local opposition to its plans for a new gas plant in Nijmegen in the Netherlands. The company claims the plant will eventually be converted to hydrogen, but campaigners question whether this is viable, given the limited availability of green hydrogen and the efficiency of using hydrogen to generate power (10).
“Trying to achieve net zero while still investing in fossil fuels is akin to training for a marathon while smoking a packet a day. Although many utilities are investing in sustainable power solutions, it is critical that they roll out ambitious step-by-step plans to move away from fossil gas by 2035 if they want to fulfil their potential to become key drivers of Europe’s energy transition.”
Brigitte Alarcon from Beyond Fossil Fuels
Reclaim Finance and Beyond Fossil Fuels are urging power utilities to stop building new gas-fired power plants, to phase-out the use of gas for electricity in Europe, and to publish ambitious transition plans.
Banks and investors must stop supporting power companies’ climate-wrecking strategies and push them to adopt credible transition plans that ensure the decarbonization of the power sector.
