EBRD rules out financing for coal power plants

• 5 years ago (2018-12-13)
• David Flin

Coal 296 North America 1021

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The European Bank for Reconstruction and Development (EBRD) has adopted a strategic plan that rules out direct financing of coal plants and mines, despite opposition to this move from the USA. This follows a joint pledge issued on 3 December by nine multilateral development banks, including the EBRD, to increase their support of climate-friendly projects and scale back assistance for anything that emits significant amounts of CO2.

The announcement came despite the attempts of President Trump of the USA to revive coal sales. Alex Doukas, Programme Director at the advocacy group Oil Change International, said: “The Trump Administration can scream into the void, but they’re not going to have very much success. Given the economics and how the conversation around coal has shifted, you might as well try to push the banks into investing in rotary phones or horse-drawn carriages.”

Some advocates within the Trump Administration have suggested that the USA should become more aggressive in pushing for support for coal projects, particularly at the World Bank, where it has a 16 per cent voting share. Barry Worthington, Executive Director of the US Energy Association, which represents the USA on the World Energy Council, has urged the USA to veto support for wind and solar projects by the World Bank until the World Energy Council “changes its anti-coal bias.”