The European Investment Bank (EIB) has confirmed it will end financial support for fossil fuel projects such as coal, oil and gas, from the end of 2021.

The board of the EU bank has agreed to no longer consider financing for unabated fossil fuel projects as part of its commitment towards a climate neutral economy by 2050.

Future financing will aim to accelerate clean energy innovation, energy efficiency and renewable energy technologies.

It has pledged to invest €1 trillion (£0.85tn) in climate action and environmental sustainability from 2021 to 2030 and set a new Emissions Performance Standard of 250g of carbon dioxide per kWh, which will replace the current 550gCO2/kWh standard.

The bank seeks to prioritise energy efficiency, enable energy decarbonisation through increased support for low or zero carbon technology and boost investments in decentralised energy production, energy storage and electric mobility.

It also aims to ensure grid investment for wind and solar as well as boost cross-border interconnections and support energy transformation outside the EU.

EIB President Werner Hoyer said: “Climate is the top issue on the political agenda of our time. Scientists estimate that we are currently heading for 3-4°C of temperature increase by the end of the century. If that happens, large portions of our planet will become uninhabitable, with disastrous consequences for people around the world.

“The EU bank has been Europe’s climate bank for many years. Today it has decided to make a quantum leap in its ambition. We will stop financing fossil fuels and we will launch the most ambitious climate investment strategy of any public financial institution anywhere.”