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Is the end of coal in sight?
Over 40 countries signed a coal pledge at the UN COP26 climate change summit, agreeing to end all investment in new coal power generation domestically and internationally. The pledge has been signed by major coal-users such as Poland and Vietnam, but failed to secure the backing of the US and China – the latter accounting for over half of global coal-fired power generation in 2020.
Major economies signing the Global Coal to Clean Power Statement have committed to phasing out coal-fired power generation during the 2030s, with the rest of the world to follow suit in the 2040s. However, none of the commitments are binding and there remains the question as to whether developing countries will need financial support from developed nations in order to move away from coal.
While the US was notably absent from signing up to the the coal pledge, it did join 19 other countries, including the UK, Canada and New Zealand, in committing to end public financing for ‘unabated’ overseas fossil fuel projects by the end of 2022. However, major financers of such projects, such as China, Japan and South Korea, did not sign up.
UK Business and Energy Secretary Kwasi Kwarteng heralded the news, claiming that ‘the end of coal is in sight’.
Meanwhile, Nick Wayth, CEO, Energy Institute, comments: ‘The addition of five of the world’s top 20 coal power generating countries – South Korea, Indonesia, Vietnam, Poland and Ukraine – is encouraging, less so the absence of the biggest players China, India, US, and Japan, which together account for 76% of the world’s coal-fired power generation. But it comes on top of separate commitments by 25 countries and public finance institutions, including the US, to end international public support for the fossil fuel energy sector by the end of 2022.’
‘This is significant not just for the end of coal and its emissions, but also for what will replace it. The UK has already cut its coal consumption for the power sector by 95% since 2000 and is on track to take coal permanently off the grid by 2024. As other countries follow us on this journey, we have the opportunity not just to share our experience and good practice on coal phase-out, but also to export technologies and know-how in replacements – fast-growing renewables and smart grids.’
However, according to Mauricio Pereira, Head of Renewable Energy at Bureau Veritas, there is a long way to go before the world is ready to commit to – and adhere to – a coal phase-out and fully embrace a future of clean energy. ‘Whilst the COP26 coal pledge certainly shows lip service to the phase out of our global reliance on fossil fuels, this is really just a drop in the ocean and not nearly enough in meeting the challenges ahead in our transition to renewable energy. Quite simply, we need more sign up and a quicker phase-out if we’re to keep 1.5°C in reach,’ says Pereira.
‘A transition to clean energy is absolutely crucial in minimising global temperature rises in line with the Paris Agreement. However, without a clear pathway to doing this – something the [UK] government now needs to prioritise – we may find ourselves in a similar position to where we were following Paris; conversation, with limited action.’
News Item details
Journal title: Petroleum Review
Subjects: Coal, Energy policy, Emissions, Climate change, Carbon emissions