The USA has announced that it has joined efforts to end export credits for coal-fired power generation projects. The initiatives are sponsored by the OECD.
In January, the Biden administration directed the US Treasury to identify steps through which the USA can promote ending international financing of carbon-intensive fossil fuel-based energy while simultaneously advancing sustainable development and a green recovery.
Inevitably, the US coal industry has said that it believes the agreement is counterproductive to addressing efforts of combating the global climate challenges. The National Mining Association said: “Coal remains absolutely critical to providing balance on the grid and underpinning affordability and reliability, particularly as the world transitions to more intermittent, weather-dependent sources of power.
At a G7 meeting in June, member countries agreed that global investments in coal should stop immediately. The leaders also directed their nations to end export subsidies for thermal coal power generation by December 2021.
In the USA, the Treasury Department said that only carbon capture, utilisation, and sequestration technology (CCUS) qualifies for abatement.