Asian and African lender Standard Chartered has announced it will cease all direct coal financing by the end of the decade. It had previously ended new coal financing and said its legacy coal financing would be phased out over the next ten years. The lender made the announcement ahead of its annual investor meeting in London on May 4.
The announcement coincides with the Powering Past Coal Alliance Global Summit in Vancouver, demonstrating the momentum towards an end to coal. In addition to this, Canada and the UK host a round table discussion on climate risks and opportunities. The report also reveals that the phase-out of coal is still limited, with some emitters still not fully committed to reducing or eliminating their use. In the long run, the authors argue that we must find a clean and low-carbon alternative to coal and make it a cleaner source of energy than it is today.
This agreement is significant because it represents a step forward toward addressing climate change. While it will ultimately impact the entire economy, it is important to note that this agreement does not merely target coal companies. The Paris Climate Agreement signed by twenty-one countries, including the U.S., promises to phase out the use of coal in a major way by 2032.
The phase-out will prevent the construction of new coal plants and manage the reduction of emissions from existing assets. This approach follows recommendations by the Commission on Growth, Structural Change, and Employment. Ultimately, the move will have positive effects on the environment and the economy. And it will also be good for the economy, as it will result in reduced carbon emissions. Therefore, it is imperative that we work together to reduce our environmental impact.
Some countries are leading the way by pledging to phase out coal and fossil fuel finance. Poland is the second largest coal user in Europe, but has announced a $15 million contribution to the coal phase-out in the coming years. The EU has committed to phasing out coal in 2030. It is important to note that the goal of the European Union is to reduce emissions by 1.5 degC.
The UK has a unique policy for phasing out coal. By 2025, it plans to shut down all coal power plants. In fact, the country has only built 39,000 MW of new coal power plants since 1985. Moreover, this policy has helped to reduce the carbon footprint of the entire continent. It is essential to stop burning coal in the U.S. to prevent the spread of harmful gases.