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International Funding For Coal Agreed To Be Stopped By G7 Countries


05/22/2021


International Funding For Coal Agreed To Be Stopped By G7 Countries
By the end of the current year, international financing of coal projects that emit carbon has agreed to be stopped by the seven largest advanced economies of the world, along with phasing out of such financial support for all fossil fuels. These measures have been taken to meet the globally agreed climate change targets.
 
One of the major steps that the world needs to undertake to keep on hold the increase in global temperatures to 1.5 degrees Celsius above pre-industrial times is to stop funding for fossil fuel. Limiting such temperature rise will help the world to avoid most of the devastating impacts of climate change.
 
With Japan also agreeing to be a part of the efforts to bring an end to international financing of coal projects within a short time frame means that those countries such as China that are still dependent on coal usage for energy and other purposes will come under more intense pressure to stop the usage of coal.
 
"International investments in unabated coal must stop now", said the Group of Seven nations - the United States, Britain, Canada, France, Germany, Italy and Japan - plus the European Union in a communiqué.
 
"(We) 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, including through Official Development Assistance, export finance, investment, and financial and trade promotion support", the group said.
 
It is considered that burning of coal for power or heat generation without the use of technologies for capturing the emissions that happen causes the biggest air pollution. Such systems that can capture the resultant carbon emissions is not yet widely used in power generation that uses coal as a fuel.
 
Stopping international coal financing has been made a "personal priority" by Alok Sharma, president of the COP26 climate summit, to help end of the dependence on of the world on fossil fuel. He called for the UN summit in November to be the one "that consigns coal to history".
 
He called on China to set out its "near-term policies that will then help to deliver the longer-term targets and the whole of the Chinese system needs to deliver on what President Xi Jinping has set out as his policy goals".
 
There was also agreement among the G7 countries to "work with other global partners to accelerate the deployment of zero emission vehicles", "overwhelmingly" decarbonising the power sector in the 2030s. That will help in shifting the world away from international fossil fuel financing. However no specific data was set for achievement of that goal.
 
The G7 countries also reaffirmed their commitment to 2015 Paris Agreement which set a target to curb rise in temperatures to as close as possible to 1.5 degrees Celsius above pre-industrial times. It also aimed to mobilise $100 billion annually by 2020 through to 2025 by the developed country climate finance goal.
 
A call for the Group of 20 world's largest economies to match the measures was given by United States climate envoy John Kerry.
 
(Source:www.thedailystar.net)