Business Energy Broker
Coal has been in the heat of discussion at COP26 as the single largest contributor to climate change as countries, banks and organisations put coal in the history books.
COP26 is at the centre of achieving clean energy transitions and the swift phase-out of coal to limit global temperatures in line with the Paris Agreement.
The landmark meeting of world leaders has welcomed at least 23 countries making new commitments to eliminate coal from their economies. The newly announced ‘Global Coal to Clean Power Transition Statement’ has introduced pledges to scaling up clean power and ensuring an effective but fair transition from coal.
Many of the new climate change commitments have followed from the announcement of the elimination of finance for coal and the introduction of support from developed nations to clean energy transitions for developing economies.
In addition, a UK-led joint statement committing to ending international public support for the fossil fuel energy sector by the end of 2022 has been signed by public finance institutions and 25 COP26 countries such as the US, Canada, Italy and Denmark. This statement will enable support to be diverted on prioritising clean energy transitions.
As a result, an estimated $17.8 billion per year in public finance will be removed from fossil fuels and allocated to the clean energy transitions. Furthermore, significant internationally financed coal power has also effectively ended after a major announcement from China, Japan and South Korea.
The milestone events at COP26 to prioritise the fossil fuel finance issues by having a transparent end date will also provide the guidelines and signals for private investment to follow.
The Powering Past Coal Alliance (PPCA) has also received 28 new members. This alliance is a UK and Canadian launched and co-chaired coalition of governments and businesses to accelerate the clean energy transition from unabated coal-powered energy.
COP26 President, Alok Sharma, commented on these commitments:
“From the start of the UK’s Presidency, we have been clear that COP26 must be the COP that consigns coal to history. With these ambitious commitments we are seeing today, the end of coal power is now within sight.
Securing a 190-strong coalition to phase out coal power and end support for new coal power plants and the Just Transition Declaration signed today, show a real international commitment to not leave any nation behind.”