Nearly all internationally available development financing is now committed to reducing or ending investment in coal-fired power after moves by China and the G20 to stop supporting new projects overseas, new research showed on Tuesday.
Just before a new round of climate talks began in Glasgow, the G20 nations pledged on Sunday to end finance for all coal-fired power plants overseas. It followed a similar commitment made by Chinese President Xi Jinping to the United Nations General Assembly in September.
According to new research from Boston University’s Global Development Policy Center, the G20 pledge means that 99% of all development finance institutions are committed to cutting coal investment and raising support for renewables.
“If these institutions live up to their commitments, it will be easier for developing countries to find official finance for renewable energy and coal power phase-out than for building new coal-fired power plants,” said Rebecca Ray, senior researcher at the GDP Center and one of the study’s authors.
The study said only three major “holdouts” remain – the Development Bank of Latin America, the Islamic Development Bank and the New Development Bank – though many of the major shareholders in those institutions were part of the G20 pledge.