Page 7 - AsiaElec Week 39 2021

AsiaElec COMMENTARY AsiaElec

The reduction would make the three coun-
tries eligible for entry into the recent “No New several countries from pouring billions of dol-
Coal” alliance, a UN pledge for countries to stop lars into coal plants that will quickly become
building new coal plants. stranded assets, given the declining costs of
Among the affected countries in Asia, cancel- renewables and public momentum for carbon
lation of plants with proposed Chinese financing restrictions.”
would reduce their coal plant proposals by over “Before last week, the world’s coal producers
40%. were still planning over 390 new coal mines. But
The biggest effects would be in Bangladesh China’s announcement just threw a wrench in
and Mongolia, as the amount of proposed coal the works,” said Ryan Driskell Tate, Researcher
plants in each country would decrease by over and Analyst for GEM’s coal mine tracker. “The
90%, making them nearly eligible for the “No coal industry is going to feel this cold splash of
New Coal” pledge. Currently, Bangladesh and reality from head to toe.”
Mongolia have the sixth and eighth highest “China’s announcement is a step in the right
pipeline of proposed coal plants in the world, direction. It is also acknowledging the reality on
respectively. the ground, since investing in new coal plants
no longer makes financial sense as other forms
Global coal of energy are much cheaper,” said Russell Gray,
China’s announcement will also have a major GEM’s coal finance researcher. “To really have
impact on the global coal market, as many of the a climate impact, China needs to begin phasing
20 countries import the majority of their coal. out coal from its power fleet as soon as possible,
Together the 20 countries were home to over and focus on renewable energy generation.”
10% of thermal coal imports in 2019, totaling China is still home to by far the largest
130 million tonnes. amount of proposed coal capacity on the globe,
If the 44 coal plants are cancelled, it will with nearly 97,000MW under construction and
reduce future coal demand in the countries by another 163,000MW in planning, according to
about 30 million tonnes a year, dealing a major GEM’s Global Coal Plant Tracker.
blow to the future prospects of coal exporters. These domestic proposals are not covered by
In all, future global coal demand growth would China’s coal finance pledge and will be the main
shrink by 1,100 million tonnes over the 44 plants’ focus ahead of COP26 at Glasgow.
lifetimes, preventing an estimated 8,000 million According to the UN’s Intergovernmental
tonnes of carbon dioxide being emitted. Panel on Climate Change, pathways for limiting
“China’s announcement is the death knell global warming to 1.5C require a virtual pha-
for overseas public financing for coal, and many seout of coal power by 2040.
proposed coal plants will be cancelled, given the The IPCC said in August that only an imme-
lack of alternative financing options,” said Chris- diate, rapid and large-scale reductions in carbon
tine Shearer, GEM’s Coal Programme Director. dioxide and other greenhouse emissions able to
“The good news is China’s move will save limit global warming to 1.5°C this century.™

Week 39 29•September•2022 www. NEWSBASE .com P7