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Home › Dodgy Deals ›
Dodgy Deal
EastMed Pipeline- international -

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

climate@banktrack.org

Last update: 2023-03-23 00:00:00
Visual of proposed EastMed Pipeline. Photo: Edison project webpage

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

climate@banktrack.org

Last update: 2023-03-23 00:00:00
Why this profile?

Why this profile?

The construction of new fossil fuel infrastructure such as the EastMed pipeline is incompatible with meeting the 1.5 degree climate target set out in the Paris Climate Agreement. The gas transported through the pipeline would produce 19 million tons of CO2 in phase one and double that amount in phase two. Further, the pipeline would be built through an earthquake-prone region, and risk exacerbating political instability in the region.

What must happen

Financial institutions should be aware of the risks and weaknesses of the project and avoid any financial support or other involvement.

About
Take Action!
Stop EU support for fossil gas in the East Mediterranean
Sectors Pipeline Transportation of Natural Gas
Location
Status
Planning
Design
Agreement
Construction
Operation
Closure
Decommission
Website http://www.igi-poseidon.com/en/eastmed

The Eastern Mediterranean (EastMed) Pipeline project is a planned off- and onshore gas pipeline that would transport gas from Israel and Cyprus via Crete to mainland Greece. If the project proceeds, at 1,900 kilometers it will be the largest offshore gas pipeline in the world. In its initial phase it would transport 10 billion cubic meters of gas per year from offshore gas reserves in the Levantine (Israel) and Aphrodite (Cyprus) gas fields to Greece, where it would link up with the proposed Poseidon gas pipeline which will transport the gas to Italia. IGI-Poseidon, a 50:50 joint venture between the Public Gas Corporation of Greece (DEPA) and Edison International Holding, is the developer of the EastMed Pipeline, and is also developing the connecting Poseidon and IGB pipelines.

With an estimated cost of at least EUR 6 billion, it would be one of the most expensive pipelines in the world. Despite this huge cost, its location across an earthquake-prone region, and its geopolitically sensitive nature, the EastMed Pipeline has already received support from the European Union for its preliminary studies. A final investment decision is expected in 2022, with the commissioning date set for 2025.

Impacts

Impact on human rights and communities

The EastMed pipeline risks increasing military tensions in the region. Turkey opposes the EastMed pipeline as it competes with the TANAP pipeline that is already transporting Azerbaijani gas to Europe. In a deal with Northern Cyprus that gave Turkey permission to drill for oil and gas in the region, they refused to acknowledge the republic of Cyprus. Drilling vessels of all countries in the region are now regularly escorted by warships. Since, Turkey has been sending drilling ships into these disputed waters, that will also be part of the EastMed route.

Furthermore, one of the main beneficiaries and proponents of the project is the Israeli government. The Israeli government has occupied Palestian territories where human rights are regularly violated. It also refuses the Palestinians and their gas reserves in the waters of Gaza to be part of the EastMed pipeline.


Impact on climate

Climate impact The EastMed Pipeline project would lock Europe deeper into gas dependency, threatening the EU's climate commitments. The EU is projected to reduce its use of natural gas by a quarter from 2015 levels by 2030 and 90% by 2050. Its current gas infrastructure is already more than enough to supply this demand of natural gas, meaning the EastMed pipeline is not needed. As data science company Artelys noted in a 2020 report on behalf of the European Climate Foundation, additional gas infrastructure represents 'a potential overinvestment of tens of billions of Euros, supported by European public funds'.

While the gas industry promotes gas as a “transition fuel”, this does not stand up to scrutiny. Gas emits about half as much CO2 as coal at the smokestack, but substantial amounts of gas - which consists predominantly of the highly potent greenhouse gas methane - are released into the atmosphere throughout its life cycle. Recognising this, the IEA acknowledges that there is no need for new fossil fuels in a 1.5 degrees world.

The EastMed Pipeline is designed to transport 10 billion cubic meters (BCM) of gas per year in phase 1 and up to 20 BCM per year in phase 2, which would lead to 19 and (up to) 38 million tons of CO2 emissions per year, respectively. If operating at full capacity till 2050, the EastMed Pipeline may have transported 500 BCM in total to Europe, leading to some 950 million tons of CO2 in total. This does not consider likely leakages of methane gas along the pipeline’s length.

The project stretches over an earthquake prone region near Crete and reaches a depth of over 3,000 meters. This is likely to greatly increase the risk of failures and leaks in the pipeline.


Other impacts

Political issues The EastMed project is presented by the proponents as a catalyst for peace. However the project’s location in the Levantine basin places it in the middle of an area of highly sensitive political tensions, including between Israel and Palestine, Israel and Lebanon, and Cyprus and Turkey. Gas discoveries have been adding to these tensions, with disputes over maritime boundaries, sovereignty, and ownership of gas reserves. For example the Aphrodite gas field - the biggest Cypriotic field – is contested between Cyprus and Israel, as it’s tip stretches into Israel’s maritime zone.

Financiers

DEPA and Edison each have a 50% equity investment in IGI Poseidon, which has share capital totaling EUR 61.6 million. Funding for the remainder of the EastMed Pipeline ‘s EUR 6-7 billion costs has not yet been secured.

In March 2018, the European Investment Bank financed DEPA with a EUR 48 million general loan for developing natural gas distribution projects.

Institution type
Finance type
Year
Companies

IGI Poseidon is the developer of the EastMed pipeline, together with the Poseidon Pipeline and the IGB Pipeline. IGI Poseidon is a 50:50 joint venture between the Public Gas Corporation of Greece (DEPA) and Edison International Holding.

Project sponsor

IGI Poseidon

Greece
Website
No companies

Other companies

DEPA

Greece
Website

Edison

Italy
Website
No companies
Governance
Bank policies
The following bank investment policies apply to EastMed Pipeline:
BNP Paribas
2017-10-17 00:00:00

Commitments to the environment

Bank policy
2017-10-17 00:00:00 | BNP Paribas
Mediobanca
2020-05-07 00:00:00

Policy on responsible lending and investing

Bank policy
2020-05-07 00:00:00 | Mediobanca
UniCredit
2019-03-04 00:00:00

Statement on climate change

Date listed represents date as accessed on website
Bank policy
2019-03-04 00:00:00 | UniCredit
Barclays
2016-03-27 00:00:00

Environmental and Social Risk Briefing Oil & Gas

Bank policy
2016-03-27 00:00:00 | Barclays
2021-02-17 00:00:00

ESG reporting framework

Bank policy
2021-02-17 00:00:00 | Barclays
Mizuho Financial Group
2020-06-01 00:00:00

Updated policy - Responsible investment and financing

(document in Japanese)
Bank policy
2020-06-01 00:00:00 | Mizuho Financial Group
Sumitomo Mitsui Financial Group
2021-01-14 00:00:00

Management of environmental risks

Date listed represents date as accessed on website
Bank policy
2021-01-14 00:00:00 | Sumitomo Mitsui Financial Group
2021-01-14 00:00:00

Environmental policy

Date listed represents date as accessed on website
Bank policy
2021-01-14 00:00:00 | SMBC
JPMorgan Chase
2020-10-06 00:00:00

Paris-aligned financing commitment

Bank policy
2020-10-06 00:00:00 | JPMorgan Chase
Toronto-Dominion Bank (TD Bank)
2020-11-09 00:00:00

Climate action plan

Bank policy
2020-11-09 00:00:00 | TD Bank
2019-03-04 00:00:00

Environment policy

Bank policy
2019-03-04 00:00:00 | TD Bank
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

LNG may topple East Med pipeline

2023-01-05 | Upstream Online
BankTrack news BankTrack blog Partner news Partner blog

Report: Turkish navy intervenes in EastMed pipeline survey

2021-09-29 | The Maritime Executive
BankTrack news BankTrack blog Partner news Partner blog

EastMed faces another challenge next week

EU countries seek to prolong bloc’s funding for gas projects, document shows
2021-05-27 | Knews
BankTrack news BankTrack blog Partner news Partner blog

EastMed pipeline viability under scrutiny

2021-03-13 | Ekathimerini.com
BankTrack news BankTrack blog Partner news Partner blog

Greek-Italian venture signs agreement with Israel on Eastmed gas pipeline scheme

2021-03-09 | Reuters
BankTrack news BankTrack blog Partner news Partner blog

Leaders From Israel, Cyprus, Greece Sign EastMed Gas Pipe Deal

2020-01-02 | Bloomberg
BankTrack news BankTrack blog Partner news Partner blog

Turkey slams controversial EastMed pipeline deal signed in Athens

2020-01-02 | TRT World
BankTrack news BankTrack blog Partner news Partner blog

Three vie for EastMed pipeline FEED work

2019-10-11 | Upstreamonline.com
BankTrack news BankTrack blog Partner news Partner blog

For Israel and Turkey, it’s now all about gas

2019-10-01 | The Asia Times
BankTrack news BankTrack blog Partner news Partner blog

Greece's DEPA Gets All Licenses For Onshore Part Of Poseidon Pipeline For Russian Gas

2019-09-09 | UrduPoint
BankTrack news BankTrack blog Partner news Partner blog

The Ministry of environment and energy of Greece approved the Environmental Impact Assessment for the onshore section of the Poseidon pipeline in Greece

2019-07-05 | IGI Poseidon press release
BankTrack news BankTrack blog Partner news Partner blog

Italy opposes Poseidon gas pipeline landfall

2019-05-07 | Reuters
BankTrack news BankTrack blog Partner news Partner blog

US senators introduce legislation to reshape East Med strategy

2019-04-10 | Ekathimerini.com
Resources
Documents
Images
Links
2021-06-21 00:00:00

Edison Financial report 2020

Annual report
2021-06-21 00:00:00 | Edison
2021-06-21 00:00:00

DEPA Financial statements 2019

Annual report
2021-06-21 00:00:00 | DEPA
2019-06-13 00:00:00

Environmental impact assessment for construction - services

Other document
2019-06-13 00:00:00 | The Official Journal for the EU
2019-05-21 00:00:00

Environmental impact assessment for construction - contract notices utilities

Other document
2019-05-21 00:00:00 | The Official Journal of the EU
2019-02-28 00:00:00

Edison Financial report 2018

Annual report
2019-02-28 00:00:00 | Edison
2019-07-31 00:00:00

DEPA Financial statements 2018

Annual report
2019-07-31 00:00:00 | DEPA
2019-02-08 00:00:00

IGI Poseidon Annual financial statements 2018

Annual report
2019-02-08 00:00:00 | IGI Poseidon
2018-02-08 00:00:00

IGI Poseidon Annual financial statements 2017

Annual report
2018-02-08 00:00:00 | IGI Poseidon

EastMed pipeline project map

2021-09-08
EastMed Pipeline project map

Petition: Stop EU support for fossil gas in the East Mediterranean

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