Participants in an officially backed Organization for Economic Co-operation and Development (OECD) export credit agreement have agreed to end their support for conventional coal-fired power plants.The international organization said in a statement issued on Friday.
Participants in the long-negotiated agreement are Australia, Canada, the European Union, South Korea, the United States, Japan, Norway, New Zealand, the United Kingdom, Switzerland and Turkey, defines the Organization for Economic Co-operation and Development.
In concrete terms, these countries have pledged not to grant export credits to new coal-fired power plants not equipped with CCS, as well as to existing plants, subject to some exceptions.
The OECD says export credits can take the form of direct assistance to companies doing business abroad or subsidizing interest payments. In practice, however, this practice is increasingly rarely used.
This kind of decision is necessary to tackle climate change and achieve net-zero emissions targets by 2050. […] The ministry will continue to work with countries around the world as they transition to cleaner and greener energy sources.
The formal entry into force of this prohibition shall take place after the adoption of this provision by each of the signatory states,
What is planned before the end of October, the Organization for Economic Co-operation and Development outlines in its press release.
The announcement comes just days before the opening of the COP26 Global Climate Conference in Glasgow on October 31, a meeting of world leaders to decide on measures needed to keep the planet on a potential warming path in the coming years.
China has not signed the agreement and the world’s largest public financier of coal-fired power plants outside its borders, for its part, announced in September that it would stop funding coal-fired power plants abroad.
This energy is responsible for about 40% of the planet’s carbon dioxide emissions.
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