- Major international banks pledge to effectively end all international public funding of new coal-fired power plants by the end of 2021
- At least 25 countries and public financial institutions pledge to end international public support for the fossil fuel sector by the end of 2022.
- The boost comes as a coalition of 190 people agree to phase out coal-fired power and end support for new coal-fired power plants thanks to a package of measures taken by the UK and international partners.
COP 26 relegates coal to history as countries, banks and organizations move away from the biggest contributor to climate change.
A just transition to clean energy and the rapid phase-out of coal has been at the heart of the COP26 presidency as part of its efforts to minimize temperature rises in line with the Paris Agreement. The scale of the commitments made in Glasgow today on Energy Day indicates that the world is moving towards a renewable future.
At least 23 countries have made new commitments to phase out coal-fired power, including Indonesia, Vietnam, Poland, South Korea, Egypt, Spain, Nepal, Singapore, Chile and Ukraine. In a new “Global Declaration on the Transition from Coal to Clean Energy ,” countries also pledged to develop clean energy and ensure a just transition away from coal.
Today's announcements follow a collapse in coal financing, as developed countries pledged new support to help developing countries make the transition to clean energy.
Banks and financial institutions also made historic commitments at COP26 today to end relentless coal financing, including major international lenders like HSBC, Fidelity International and Ethos.
This follows recent announcements by China, Japan and South Korea to end overseas coal funding, which now means all major international government funding for coal power has effectively gone. ended.
In addition, a group of 25 countries, including COP26 partners Italy, Canada, the United States and Denmark, as well as public financial institutions, signed a joint declaration led by the United Kingdom s 'Committing to end relentless international public support for the fossil fuel sector by the end of 2022 and to prioritize support for the clean energy transition.
Collectively, this could shift government support estimated at $ 17.8 billion per year from fossil fuels to the clean energy transition. Developing countries such as Ethiopia, Fiji and the Marshall Islands have also provided support. It is an inclusive agenda that must recognize the development and energy needs of all economies.
This is a historic milestone. This is the first time that a COP presidency has prioritized this issue and set a bold end date on international fossil fuel financing. COP26 set a new standard of excellence in aligning with the Paris Agreement in international public finance and sends a clear signal to private investors to follow.
Today, 28 new members also signed the world's largest coal phase-out alliance: The Powering Past Coal Alliance, launched and co-chaired by the UK and Canada. New members include Chile and Singapore, joining over 160 countries, sub-nationals and companies.
And 20 new countries, including Vietnam, Morocco and Poland, have pledged not to build new coal-fired power plants, which matches similar announcements made over the past year by Pakistan, Malaysia. and the Philippines, and builds on the No New Coal Power Compact launched in September by Sri Lanka, Chile, Montenegro and European partners.
There has been a 76% drop in the number of new coal-fired power plants planned worldwide in the past six years since the adoption of the Paris Agreement. This is equivalent to the cancellation of more than 1,000 MW of new coal-fired power plants.
In separate announcements, major emerging economies today took significant steps to shift from coal to clean energy. India, Indonesia, the Philippines and South Africa have announced partnerships with Climate Investment Funds to accelerate their transitions away from coal-fired power, backed by a dedicated $ 2 billion envelope. of dollars. Indonesia and the Philippines have announced pioneering partnerships with the Asian Development Bank to support the early decommissioning of coal-fired power plants.
These followed the groundbreaking $ 8.5 billion deal to support South Africa's just transition to clean energy announced at the World Leaders' Summit on Tuesday.
COP26 President Alok Sharma said:
From the start of the UK Presidency, we have been clear that COP26 must be the COP that will make coal a thing of the past. With these ambitious commitments that we see today, the end of coal power is now in sight.
Obtaining a coalition of 190 people to phase out coal-fired power and end support for new coal-fired power plants, and the Just Transition Declaration signed today, show a real international commitment to leave no nation aside.
Together, we can accelerate access to electricity for the more than three-quarters of a billion people who currently do not have it, eradicate energy poverty as we create the future of the clean energy needed to sustain the objective of 1.5 ° C ..
High-level climate action champions Gonzalo Muñoz and Nigel Topping said:
With growth of 80% of their capacity commitment - from 25 to 45 gigawatts electrolysis - in a year, the Green Hydrogen Catapult and its members demonstrate the short-term potential for exponential growth of green hydrogen made possible by local and global political support and growing customer interest.
It is fantastic to see the ambition in the deployment of renewable energy, with the members of Race to Zero committing to reach over 750 MW of installed renewable energy capacity by 2030. This will only grow. as more energy companies join the race for zero emissions and decarbonization ambitions continue to rise, reflecting the exponential progress we have seen in the sector to date.
Other announcements made on Energy Day include:
- A strategic partnership between the Council of the energy transition and the World Energy Alliance for people and the planet (GEAPP). GEAPP, announced on November 2 with $ 10 billion in funding from philanthropists and development banks, aims to provide clean, renewable energy to 1 billion people in developing and emerging economies and create 150 million 'green jobs by 2030. The partnership will include up to £ 25million from the GEAPP to support the Council's Rapid Response Mechanism for Energy Transition.
- Fourteen countries, including India, Indonesia, Japan and Nigeria, have pledged to increase the efficiency of their products by signing a global target to double the efficiency of lighting, cooling, motors refrigeration and 2030 with the support of the initiative EP100 Climate Group bringing together 129 companies.
- The launch of Alliances for green hydrogen for Africa and Latin America, with members from six African countries and five Latin American countries. They aim to initiate the development of millions of metric tonnes of reliable, near-zero carbon green hydrogen production for use in domestic and international industries around the world.
- Countries pledging today to phase out coal-fired power include 5 of the top 20 coal-fired electricity-generating countries in the world. These are South Korea (5th), Indonesia (7th), Vietnam (9th), Poland (13th) and Ukraine ( 19th).
- As part of its country declarations, Indonesia signs the COP26 Coal to Clean Energy Transition Declaration, excluding Clause 3, but as part of its commitment to achieve net zero emissions by 2060, or sooner with international assistance, Indonesia will consider accelerating the phase-out of coal in the 2040s, subject to agreeing additional international financial and technical assistance with its development partners.
- South Africa's Just Energy Transition Partnership was first announced at the World Leaders' Summit on November 2. It could prevent 1 to 1.5 Gt of emissions over the next 20 years in South Africa - three times the UK's annual emissions. This could set new precedents for sustained transitions in other high-emitting coal-consuming countries, including Indonesia and India.
- The $ 10 billion cited to support emerging economies in transition includes (1) the Partnership for a Just Energy Transition in South Africa and (2) the Climate Investment Fund Accelerating the Transition to Coal (CIF ACT) , which represents the financing that CIF ACT will mobilize through multilateral development banks and private partners.
- The $ 20 billion cited to support developing countries include (1) the Partnership for a Just Energy Transition in South Africa and (2) the Climate Investment Fund Accelerating the Transition to Coal (CIF ACT), which represents the funding that CIF ACT will mobilize through multilateral development banks and private partners and (3) the new $ 10 billion energy fund, the Global Energy Alliance for People and Planet.
- The UK-led joint statement pledging to end relentless international public support for the fossil fuel sector brings together a strong group of climate champions, including the world's largest economy and the largest international donor ( United States). The signatories are:
- OECD: Canada, Costa Rica, Denmark, Finland, New Zealand, Portugal, Slovenia, Switzerland, United Kingdom and United States.
- Non-OECD: Ethiopia, Fiji, Mali, Marshall Islands, Moldova, South Sudan, Gambia, Zambia.
- Public financial institutions: the Development Bank of Minas Gerais (BDMG, Brazil), the Development Bank of East Africa (AfDB), the European Investment Bank (EIB), Financierings-Maatschappij voor Ontwikkelingslanden NV (FMO) and the French development Agency (AFD).