UK to limit overseas coal-fired plant financing

Davey said that the UK will now only support public financing of international coal-fired power plants “in rare circumstances”.

In a written statement to parliament, Davey stated that investments in new coal-fired energy production will risk locking countries in to higher levels of carbon emissions.

The UK will now only support public financing of international coal-fired power plants “in rare circumstances”

Secretary of State Edward Davey

“In order to avoid dangerous climate change, it is estimated that global coal demand will need to fall by 45% from 2009 levels by 2050,” Davey said.

In an effort to end supporting public financing of overseas plants, the UK is following in the footsteps outlined by US President Barack Obama during a speech in June.

In June the US President called to end US support for public financing of new coal plants overseas.

Support would only be given “for the most efficient coal technology available in the world’s poorest countries in cases where no other economically feasible alternative exists or facilities deploying Carbon Capture and Sequestration technologies” Obama said.

Similarly, Davey stated that the UK will only consider Multilateral Development Banks (MDB) proposals for overseas power plant financing if no other economically feasible alternative exists.

“We would also be prepared to support MDB proposals for financing the additional costs of facilities fully deploying carbon capture and storage technologies,” he added.