1. Our Team

Europe’s energy crisis is aggravating a decades-old tension between the developed and the developing world. As wealthy countries increase natural gas imports (including from Africa), many of them are maintaining policies that restrict development finance for gas-fired infrastructure projects in poorer nations.

At COP26, over 40 countries pledged to phase out coal completely by 2030-2040, but achieving these goals won’t be easy, or cheap.

More than 40 countries say they’ll phase out coal-fired power plants in the next 20 years Originally appeared in The Washington Post Monkey Cage, December 2, 2021.  Reducing coal use around the world is critical for decreasing air pollution and addressing climate change, yet global coal consumption continues to grow in some regions.

Advancing inclusive and equitable energy transitions is one of this century’s most vital global challenges, and one in which development finance will play a crucial role.

To achieve net-zero emissions by mid-century, the International Energy Agency projects a need to phase out all unabated coal-fired power plants by 2040.1 This has significant potential implications for emerging markets, since an estimated 70% of existing coal-fired capacity (and over 90% of planned capacity) is in China, India, and about 20 other countries including Bangladesh, Indonesia, Malaysia, Philippines, Pakistan, South Africa, Turkey, Ukraine, and Vietnam.2 Public and private funders are exploring various market-based options to accelerate the decommissioning of coal generation assets. Potential financing structures to accelerate decommissioning Options include the following three public-private mechanisms, each of which requires some form of concessionary public capital or guarantee: 1.