Coal is being consigned to history at COP26, as countries, banks, and organizations move away from the single biggest contributor to climate change. A just transition to clean energy and the rapid phase-out of coal has been at the heart of the COP26 Presidency as part of its efforts to minimize temperature rises in line with the Paris Agreement. The breadth of commitments announced in Glasgow, Scotland on Energy Day signal the world is moving towards a renewable future.
At least 23 nations made new commitments to phase out coal power, including Indonesia, Vietnam, Poland, South Korea, Egypt, Spain, Nepal, Singapore, Chile, and Ukraine. In a new ‘Global Coal to Clean Power Transition Statement’, countries also committed to scaling up clean power and ensuring a just transition away from coal.
The announcements follow a collapse in the financing of coal, as developed nations have pledged new support to help developing countries make the transition to clean energy.
Banks and financial institutions also made landmark commitments at COP26 to end the funding of unabated coal, including major international lenders like HSBC, Fidelity International, and Ethos, following recent announcements from China, Japan, and South Korea to end “overseas coal financing”.
In addition, a group of 25 countries including COP26 partners Italy, Canada, the United States, and Denmark together with public finance institutions, have signed a UK-led joint statement committing to ending international public support for the unabated fossil fuel energy sector by the end of 2022 and instead, prioritize support for the clean energy transition.
This now means all significant public international financing for coal power has effectively ended.
Collectively, this could shift an estimated US$17.8 billion a year in public support out of fossil fuels and into the clean energy transition. Developing countries including Ethiopia, Fiji, and the Marshall Islands offered their support, signaling growing unity. that this is an inclusive agenda that must recognize the development and energy needs of all economies.
According to the organizers, this is a “historic step” as it is the first time a COP Presidency has prioritized this issue and put “a bold end date” on international fossil fuel finance. “COP26 has set a new gold standard on the Paris Alignment of international public finance and sends a clear signal for private investors to follow.”
Today, 28 new members also signed up to the world’s largest alliance on phasing out coal, the Powering Past Coal Alliance (PPCA), first launched in 2017 and co-chaired by the UK and Canada. New members include Chile and Singapore, joining more than 160 countries, sub-nationals, and businesses.
And 20 new countries, including Vietnam, Morocco, and Poland committed to building no new coal plants, matching similar announcements over the past year by Pakistan, Malaysia, and the Philippines, and building on the No New Coal Power Compact launched in September 2021 by Sri Lanka, Chile, Montenegro, and European partners.
In separate announcements, major emerging economies also took significant steps to move from coal to clean power. India, Indonesia, the Philippines, and South Africa announced partnerships with the Climate Investment Funds to accelerate their transitions away from coal power, backed by a dedicated US$2 billion facility.
Indonesia and the Philippines announced pioneering partnerships with the Asian Development Bank to support the early retirement of coal plants.
These followed the ground-breaking US$8.5 billion deal to support South Africa’s just transition to clean energy announced at the World Leaders Summit on November 2, 2021.
From the start of the UK’s Presidency, we have been clear that COP26 must be the COP that consigns coal to history. With these ambitious commitments we are seeing today, the end of coal power is now within sight. Securing a 190-strong coalition to phase out coal power and end support for new coal power plants and the Just Transition Declaration signed today show a real international commitment to not leave any nation behind. Together we can accelerate access to electricity for more than three-quarters of a billion people who currently lack access, consigning energy poverty to history as we create the clean power future needed to keep 1.5 alive, COP26 President, Alok Sharma said.
Other announcements on Energy Day included:
- A strategic partnership between the Energy Transition Council and the Global Energy Alliance for People and Planet (GEAPP). The GEAPP, announced on November 2, 2021, with US$10 billion funding from philanthropies and development banks, aims to deliver clean, renewable energy to 1 billion people in developing and emerging economies and create 150 million green jobs by 2030. The partnership will include up to £25 million from GEAPP to support the Energy Transition Council’s Rapid Response Facility.
- Fourteen countries including India, Indonesia, Japan, and Nigeria committed to the largest ever increase in product efficiency by signing up to a global goal of doubling the efficiency of lighting, cooling, motors, and refrigeration by 2030 with support from the Climate Group’s EP100 initiative of 129 businesses.
- The launch of Africa and Latin America Green Hydrogen Alliances with membership from six African countries and five Latin American countries. They aim to kickstart the development of millions of tonnes of production of reliably near-zero-carbon green hydrogen to be used in domestic and international industries worldwide.
