ADB scraps future funding for coal-fired power plants

• 3 years ago (2021-05-11)
• David Flin

Asia 859 Coal 282

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The Asian Development Bank (ADB) has announced its intention to scrap funding for coal mining and coal-fired power plants in the Asia-Pacific region. It released its draft Energy Policy on May 7, which said that the 2019 policy would be updated to align with the fundamental changes in the energy sector, the ongoing global energy transformation, and rising concerns over climate change. ADB said that its old energy policy: “Is no longer adequately aligned with the global consensus on climate change and the ongoing transformation of the energy sector.”

Yongping Zhai, Energy Sector Group Chief of ADB, said: “In this draft policy, we aimed to formally withdraw financing for new coal-fired power generation. ADB will support countries to achieve a planned and rapid phaseout of coal while considering the impact on people and communities to ensure a just transition.”

Zhai said that the bank is currently consulting with shareholders and the public over the final version of the energy policy, which will be submitted to the ADB board of directors by October 2021 for their consideration.

ADB has committed to deliver $80 billion in climate finance funds between 2019 and 2030, and will ensure that at least 75 per cent of its projects will address climate change mitigation and adaptation by 2030.