19 nations plan to end public financing of fossil fuel projects

19 nations plan to end public financing of fossil fuel projects
Delegates sit in the Action Zone as they attend the third day of the COP26 UN climate summit in Glasgow on Wednesday. (AFP)
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Updated 04 November 2021

19 nations plan to end public financing of fossil fuel projects

19 nations plan to end public financing of fossil fuel projects

GLASGOW: The British government was in last-minute talks on Wednesday with at least 19 countries in an attempt to build a coalition commitment at the COP26 climate summit to stop public financing for fossil fuel projects abroad by the end of next year, Reuters quoted two people familiar with the talks as saying.
So far, countries signed on to join include Denmark, Finland, Costa Rica, Ethiopia, Gambia, and the Marshall Islands, plus some development institutions including the European Investment Bank and the East African Development Bank, the report said.
The countries will commit to ending public support for foreign fossil fuel energy projects by the end of 2022, though the deal would allow for unspecified exemptions in limited circumstances.
One source familiar with the discussions said the countries so far lined up to sign the deal have collectively invested billions of dollars per year in international fossil fuel projects over the last few years.
The British government did not immediately respond to a request for comment, Reuters said.
China’s green projects
China’s central bank governor, Yi Gang, said on Wednesday Beijing was working on a new monetary policy facility to provide low-cost funds for financial institutions to support green projects.
Addressing a UN COP26 climate summit via a video message, Yi said the People’s Bank of China and the EU would soon deliver a shared understanding of what is a green investment.
China also flagged on Wednesday it is targeting a 1.8 percent reduction in average coal use for electricity generation at power plants over the next five years, in a bid to lower greenhouse gas emissions.
Average coal use for electricity generation in China fell by about 17.4 percent in the 15 years till 2020.

Coal-fired plants
The Asian Development Bank launched a plan on Wednesday to speed the closure of coal-fired power plants in Indonesia and the Philippines to lower the biggest source of carbon emissions.
The proposal, called Energy Transition Mechanism, plans to create public-private partnerships to buy out the plants and wind them down within 15 years, far sooner than their usual life.
The announcement was made at the climate conference.
ADB is now launching a pilot in Indonesia and the Philippines that will see it work with the governments on a feasibility study to detail the right business model for each country.
Japan’s Ministry of Finance committed a grant of $25 million to the ETM, the first seed financing.