ADB May (Finally And Formally) Turn Its Back On Coal Power

The Asian Development Bank is testing the waters for a new policy that would forbid it from backing coal mining and new coal power projects.

The Asian Development Bank is a regional development bank that was established back in 1996. Its stated goal these days is “achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.” Note the “sustainable” mention.

It supports projects in developing member countries that create economic and development impact, delivered through both the public and private sectors. One of its focuses at the moment is a sustainable recovery from COVID-19 in Asia and the Pacific; the economic recovery the UN keeps pleading should a “green” recovery, free of fossil-fuel subsidies and other support.

Something else the ADB has been tinkering with is a new Energy Policy, a draft of which was released last week for public consultation. While the ADB says it has not financed investments in coal power plants since 2013, its existing policy allows for it.

But given the major changes in the energy landscape and considering the new emphasis of ADB’s Strategy 2030 released nearly *3 years ago* that includes the “sustainable” bit mentioned above; it’s time for the policy to be tightened up to reflect that.

On page 25 of the draft policy, the ADB states it will not finance:

• Coal mining
• Oil and natural gas field exploration, drilling or extraction activities
• Any new coal-fired capacity for electricity and heat generation
• Any facilities associated with new coal generation

So, that would be new coal power dealt with (or more accurately, not). But what about existing coal power?

The document states:

“ADB will not participate in investments to modernize, upgrade, or renovate coal facilities that will extend the life of existing coal-fired power and heating capacity unless it is to re-engineer such plants for use of cleaner fuels, such as natural gas or renewable energy sources.”

That renewables support sounds good, the bit about gas, not so much – and a few groups have already bailed up ADB on that.

An End To New Coal Power In Japan?

While on the topic of the Asia Pacific and coal, there has been an interesting recent development in Japan, an ADB member.

The Straits Times reports plans have been scrapped for a 1.3 gigawatt coal power project in Akita prefecture, which was meant to be up and running by 2024. The reasons provided were the government’s tighter environmental rules and banks shying away from financing such projects.

The article notes several coal projects are currently under construction in Japan, but there are no plans for more plants past those.

In October last year, Japan’s Prime Minister Yoshihide Suga said the country would become carbon-neutral by 2050, then last month announced an aim of a 46% reduction by 2030 – and to go further if viable. This new commitment was well up on the previous 26% reduction from 2013 levels by 2030.

It’s a bit of positive news for the planet, but not so great for the Australian coal industry as Japan is a major market for our problematic black rock.

Original Source: https://www.solarquotes.com.au/blog/adb-coal-financing-mb1992/