France and US Champion Bold Move: In a significant development ahead of the COP28 summit in Dubai, France, backed by the United States, is set to propose a policy to cease private financing for coal-based power plants. This strategy, known as the “New Coal Exclusion Policy,” was recently communicated to India and is expected to escalate divisions during the conference, particularly with countries like India and China that rely on coal to meet their energy demands.
Chrysoula Zacharopoulou, France’s minister of state for development, conveyed the plan to the Indian government. The initiative aims to curtail private financial support for coal-fired power plants, contributing to global efforts to combat climate change. Although this proposal has not been officially reported until now, it underscores the commitment of certain nations to push for more aggressive measures in the transition to cleaner energy sources.
According to sources, French President Emmanuel Macron prioritizes ending private coal power subsidies at COP28. This meeting is a significant opportunity to accelerate global warming and climate change legislation. Under the proposed strategy, the OECD would set coal-exit criteria for commercial financial institutions. This action should allow regulators, rating agencies, and NGOs to monitor and assess financial businesses’ compliance with these requirements.
The United States, the European Union, Canada, and other nations have been advocating for a comprehensive plan to expedite the phase-out of coal, which they consider a significant threat to climate goals. Their concerns are primarily focused on the continued financial support for the construction of new coal-fired power plants in developing nations. The proposal shared by France with India emphasizes the need for global collaboration to halt the expansion of coal capacity.
Also Read: G7 Grants Vietnam 300 Million Dollar to Reduce Coal Use, Loans Predominate
India and China are planned or building 490 gigawatts of new coal capacity, or 20% of the global capacity. As the IPCC and IEA have stressed, coal reliance’s issues must be addressed urgently. Rick Duke, the Deputy U.S. Special Envoy on Climate Change, did not explicitly address the suggestion but stressed the need to rapidly transition to greener energy. According to IPCC and IEA projections, 500 gigawatts of new coal-fired power stations are under construction worldwide.
The dynamics within member countries at COP28 reflect a divergence of opinions on emissions abatement technologies that are still in the process of evolving for commercial use in developing countries. The divide signifies the challenges of achieving consensus on the most effective strategies to address the urgent climate crisis.
India, a country where approximately 73% of electricity is produced using coal, intends to resist setting a deadline for a fossil fuel phase-out or phase-down at COP28. Given its continued reliance on coal for the foreseeable future, India may advocate for a shift in focus towards reducing emissions from other sources. Additionally, it could push developed nations to commit to becoming carbon negative rather than carbon neutral by 2050, emphasizing the need for a nuanced and context-specific approach to climate goals.
In summary, the proposal by France to halt private financing for coal-based power plants sets the stage for intense discussions and negotiations at COP28. The differing perspectives among nations underscore the complexities involved in addressing the global energy transition and the urgency to find common ground in the fight against climate change.
Our Reader’s Queries
What was Emmanuel Macron’s legacy?
Macron made history as the first individual to secure the presidency of the Fifth Republic without the support of either the Socialists or the Gaullists. Additionally, he became France’s youngest head of state since Napoleon I. In 2022, he was reelected, marking the first time in two decades that a French president had won a second term.
Is France investing in AI?
France has recently declared its investment in open source technology for Artificial Intelligence. This move is expected to revolutionize the AI industry and pave the way for more innovative solutions. By embracing open source, France is promoting collaboration and knowledge sharing among developers, which will ultimately lead to faster and more efficient development of AI applications. This investment is a testament to France’s commitment to staying at the forefront of technological advancements and driving progress in the field of AI.