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G7 nations plan stop to coal financing by end of this year

May 24, 2021

Renew Economy:

‘Group of Seven’ nations have agreed to halt the funding of unabated coal-fired power projects before the end of 2021, ahead of a major meeting in June that is likely to pile more pressure to the Morrison government’s inaction on climate change.

In a communique released on Friday, environment ministers from G7 countries highlighted the need to phase out new direct government support for carbon intensive international fossil energy sources, aligned with 1.5C climate targets.

“Consistent with this overall approach and recognising that continued global investment in unabated coal power generation is incompatible with keeping 1.5°C within reach, we stress that international investments in unabated coal must stop now and commit to take concrete steps towards an absolute end to new direct government support for unabated international thermal coal power generation by the end of 2021,” it said.

The G7 communique failed to set any concrete deadline for the phase-out of coal-fired power. A recent report from the IEA found that for the world to align with a 1.5°C target, coal power must be entirely phased out in advanced economies by 2030 at the latest. However, the Communique reads: “recognising that coal power generation is the single biggest cause of global temperature increases, we commit now to rapidly scale-up technologies and policies that further accelerate the transition away from unabated coal capacity and to an overwhelmingly decarbonised power system in the 2030s, consistent with our 2030 NDCs and net zero commitments”.

[Ketan Joshi]

More: G7 Countries agree to end coal financing by end of 2021

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