The world's largest multilateral development bank (MDB) – European Investment Bank (EIB) – postponed its decision to stop funding natural gas-fired projects.

The MDBs are facing sharp criticism for promoting fossil fuel-run plants, and jeopardizing global efforts to combat the climate crisis.

The board members of the EIB in a meeting on Tuesday agreed to postpone the decision to stop funding natural gas projects till November.

"On the basis of what we discussed this morning, I am increasingly confident that we will achieve the final approval in November," Andrew McDowell, an EIB vice-president, told Reuters.

In July, the bank announced to end lending to fossil fuel-related projects by the end of 2020, cutting down on loan approvals to coal and oil proposals.

After a series of global climate talks, governments and policymakers agreed to curb the use of coal, oil, biomass and natural gas consumption to control greenhouse gas emission, known for causing global warming.

While emissions from coal, oil and biomass lead to massive emissions, natural gas has a relatively low carbon footprint.

Environmentalists are urging the MDBs to cease funding for fossil fuel and channelize the money for setting up new renewable energy plants and projects.

Xavier Sol, director of Counter Balance, an environment monitoring organization, said that EIB top officials need to adopt a fossil fuel-free energy policy in their November meeting.

"As of January 1, 2021, the EIB should stop handing out public money to fossil fuel projects. Otherwise, the whole idea of turning the EIB into a climate bank will inevitably fall apart."

MDBs are facing intense scrutiny by environmental groups for funding energy-guzzling infrastructure projects in developing countries.

A report released jointly by Christian Aid and Big Shift Global Campaign ahead of the EIB meeting revealed that the MDBs reduced more than 500 million U.S. dollars' worth of financing to solar, wind and related projects between 2017 and 2018.

The investment came down from 9.20 to 8.65 billion U.S. dollars, utilizing only 29 percent of the climate mitigation budget.

Anna Roggenbuck, a policy officer with Bankwatch Network, said that the European leaders are again confirming that climate protection is an empty phrase for them.

"We are disappointed by this delay but still hope that the initial proposal will be adopted in November," she said.