EU utilities make ‘historic pledge’ to phase out coal

Power utilities from EU nations have pledged to not invest in new coal-fired plants in the EU after the year 2020, whilst Greenpeace and other environmental organisations have reported a 62% drop in new global coal plant construction worldwide.

Eurelectric, the union representing some 3,500 power utilities across Europe, says the European power sector has agreed a ‘joint position’ on the EU’s Clean Energy Package, which includes renewed efforts to meet Paris Agreement targets. In a statement, Eurelectric makes the pledge (but which is not supported by its members in Poland and Greece), and also says that says electric technologies are the ‘obvious choice’ for replacing fossil fuels in sectors like transport.

In order for Paris targets to be achieved, the EU must close all 315 of its coal-fired power plants by 2030, according to a Climate Analytics report released in February. There has been speculation that the Paris Agreement will spell the end for polluting fossil fuel industries in Europe. Speaking to The Guardian, Wendel Trio, Director of Climate Action Network Europe said: ‘it is now clear that there is no future for coal in the EU… the question is: “what is the date for [coal’s] phase out in the EU, and how hard will the coal industry fight to keep plants open?” ’ 

Renewed efforts to phase out coal in Europe come amid President Trump’s executive order to roll back the US Clean Power Plan enacted by the Obama administration. The Clean Power Plan would require states to cut carbon emissions from existing power plants by 30% from 2005 levels by 2030, but President Trump has made no secret about his desires to kill the Plan and derail its aggressive emissions reduction aims. 

But Reuters surveyed 32 utilities operating in the 26 states that took legal action against Obama’s Clean Power Plan, and found that ‘the bulk of them have no plans to alter their multi-billion, years-long shift away from coal.’ US utilities cited mainly economic reasons for continuing to move away from coal production, including the low cost and abundance of natural gas – coal’s main competitor – falling solar and wind costs, and environmental laws. 

In addition to the 62% drop in new coal plant construction across the globe, Greenpeace also reports a 48% reduction in worldwide coal plant pre-construction activity and an 85% decline in new Chinese coal plant permits. Global coal production saw a dramatic drop in 2016, due largely to a clampdown on new coal plant projects by the government in China and financial retrenchment by coal plant backers in India.