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Exclusive: France, US to propose ban on private finance to coal-fired plants at COP28

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:

🗞️ Driving the news: France, with U.S. support, plans to propose a halt to private financing for coal-based power plants at the upcoming U.N. climate conference, COP28
• This initiative, named the "New Coal Exclusion Policy," aims to restrict funding for coal-fired power stations, a move that is expected to deepen divisions among participating nations

🔭 The context: The proposal, communicated to India earlier, targets the cessation of private financial and insurance company support for coal power
• This strategy is part of a broader effort by countries like the U.S., European Union, and Canada to accelerate the phase-out of coal, seen as a major threat to climate goals
• Countries like India and China, reliant on coal for their energy needs, are opposed to these restrictions

🌍 Why it matters for the planet: The policy intends to curb the construction of new coal-fired power plants, which significantly contribute to global warming
• New coal capacity accounting to approximately 490 gigawatts, mostly in India and China, is planned or under construction, contradicting the urgent climate action recommended by international organizations

⏭️ What's next: The debate over this proposal is set to intensify at COP28 where developing nations, particularly India, which relies heavily on coal for electricity, are expected to resist the push for a rapid fossil fuel phase-out
• The conference will likely witness discussions on alternative emissions reduction strategies and the role of developing countries in the global transition to cleaner energy

💬 One quote: "Countries need to join us in the fastest possible power sector transition, including all that clean power deployment" (Rick Duke, Deputy U.S. Special Envoy on Climate Change)

📈 One stat: About 73% of electricity in India is generated from coal, despite the country increasing its non-fossil capacity to 44% of its total installed power generation capacity

Click for more news covering the latest on COP28

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