[Climate Bonds] UK Govt announces it’s joining US, Scandis, World Bank, EIB to end overseas aid support for coal power and stop other MDBs. First test: EBRD’s Kosovo coal plant

Climate Bonds has posted a new item, ‘UK Govt announces it’s joining US, Scandis, World Bank, EIB to end overseas aid support for coal power and stop other MDBs. First test: EBRD’s Kosovo coal plant

The UK Government announced today they will join the US and Scandinavian countries in agreeing to end support for public financing of new coal-fired power plants overseas, except in “rare circumstances in which the poorest countries have no feasible alternative”.

The two governments say they will work together to secure the support of other countries and Multilateral Development Banks to adopt similar policies.  (BTW, the UK press release notes are useful – worth a read).

UK Minister Ed Davey: “It is completely illogical for countries like the UK and the US to be decarbonising our own energy sectors while paying for coal-fired power plants to be built in other countries.” Go Ed!

He goes further: “It undermines global efforts to prevent dangerous climate change and stores up a future financial time bomb for those countries who would have to undo their reliance on coal-fired generation in the decades ahead, as we are having to do today.” Absolutely right!

First test … the European Bank of Reconstruction and Development. The bank is reviewing it’s energy policy, with a decision due very soon. To the great embarrassment of many of its own staff, EBRD is still funding coal, in particular a new 600 MW lignite plant in Kosovo. Will the UK and the US, both EBRD board members, now mobilize to cancel it?

You may view the latest post at http://www.climatebonds.net/2013/11/uk-ends-coal-support-first-test-ebrd/