Europe’s largest power utilities plan to burn gas beyond 2035, with several developing new gas-fired power stations, according to research from civil society organisations who are urging investors to push for credible transition plans. Analysis from Reclaim Finance and Beyond Fossil Fuels found that none of the ten power companies studied are on track for net zero, nor have they published clear transition plans. Seven European utilities 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. Recent analysis from independent think tank Ember points out that by 2030, a significant portion of European fossil gas capacity could be under-utilised, while diverting financial resources away from long-term investments in renewable energy and efficiency measures. In all International Energy Agency scenarios, the peak demand for fossil gas, including for electricity production, is expected before 2030, especially in advanced economies where demand is already decreasing. This makes building new gas plants, whose lifespan ranges from 25 to 40 years, “incoherent”, said Reclaim Finance and Beyond Fossil Fuels. “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,” said Pierre-Alain Sebrecht, Analyst at Reclaim Finance. “This ongoing 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.”
