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Over the last eight years, governments have channelled more than $73 billion of public money into coal projects, says research released this week.
The finance – which averages $9 billion a year – is responsible for as much pollution as some developed countries.
The report, Under the Rug: How Governments and International Institutions Are Hiding Billions in Support to the Coal Industry, from WWF, Natural Resources Defense Council and Oil Change International, comes as global climate change impacts driven by carbon-intensive energy use accelerate.
As the 34 countries of the Organisation for Economic Co-operation and Development (OECD) gather for their annual Ministerial meeting and G7 leaders prepare to meet in Germany next week, the report authors are calling on rich nations to seize these key political opportunities to ensure their climate credibility by taking ambitious and urgent action so the planet can avoid the worst impacts of climate change.
‘Many developed country governments that push for ambitious climate action are simultaneously funding coal abroad. They cannot do both and be credible.
‘It is time for rich nations to put their money behind the solutions, like renewable energy, rather than using taxpayers’ money to fuel climate change.’
Samantha Smith, leader of WWF’s Global Climate and Energy Initiative
The report reveals that international public finance for coal between 2007 and 2014 is responsible for as much pollution as Italy, the country with the 20th highest emission globally. During this period, total greenhouse gas emissions amounted to almost half a billion tons of carbon dioxide equivalent per year.
Over the eight years tracked by the report, Japan provided the largest amount of coal financing of any country, at over $20 billion. From OECD members, whose official Export Credit Agencies provide nearly half of the total international finance for coal, Korea and Germany were the next largest sources of funding for coal.
Non-OECD nations China and Russia account for 23% of public finance for coal with multilateral development banks making up 22%.
Contradicting the claim that export finance for coal is necessary to fight energy poverty in poor countries, the report shows that zero export finance for coal has gone to low-income countries, where the need for energy access is greatest. Instead, 25% of this finance went to high-income countries with no energy poverty concerns.
‘All developed countries must follow the examples set in 2014. If they want to be credible in Paris when asking developing countries to commit to an ambitious climate agreement, rich countries must ensure consistency between climate commitments and export finance policies. It’s time to fund the solutions of the future, not the dirty fuels of the past.’
Samantha Smith, leader of WWF’s Global Climate and Energy Initiative
With UN climate negotiations for a new global agreement taking place later this year, Nordic countries, the UK, USA and France, as well as financial institutions such as the World Bank, have recently pledged to stop coal power plant finance. This is reflected in the report by a reduction in public finance for coal in 2014.
Click here to download the full report, Under the Rug: How Governments and International Institutions Are Hiding Billions in Support to the Coal Industry.
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