Coal is choking and RE growing says new WWF report
(Bonn, Germany, 21 October, 2015) – Globally, coal mining companies are on the edge of the financial abyss and more planned coal plants are being cancelled than built, according to a new report released today by WWF.
Ever cheaper renewable energy is attracting more investment than coal. In 2014 59 per cent of net additions to global power capacity were from renewable energy – nearly 80 per cent in Europe.
The financial sector in many parts of the world is also moving rapidly away from coal. Major institutional investors such as AXA, Aviva, California’s state pension funds, the city of Oslo’s pension funds and the Norwegian Sovereign Wealth Fund are divesting from coal. Banks such as Credit Agricole and Bank of America are reducing their lending to coal.
The report shows that coal is caught in a perfect storm. Concerns about climate change, the environment and health impacts have increasingly incited governments to impose regulations on its use.
The coal industry is, in short, in terminal structural decline. In order to limit global warming to well below 2 degrees, as the science recommends, that decline will need to accelerate.
Samantha Smith, leader of WWF’s Global Climate and Energy Initiative said, “Burning coal is the largest single contributor to climate change and we must phase it out if we want to achieve any of the goals currently under discussion here in Bonn at the UN climate negotiations.
“Public money from developed countries should not go to coal, either as export credits or so-called climate finance. Increasingly governments and financial institutions are turning their backs on it and the industry is in decline. Wealthier governments should fund the solutions and put their efforts into financing a rapid and just transition into renewable energy and energy efficiency,” said Smith.
Jan Vandermosten, Policy Officer at WWF’s European Policy Office said, “We are witnessing an energy transition. The increasing competitiveness of renewable energy has further undermined the attractiveness of coal investments, to a point of no return. In 2014 China’s coal consumption dropped for the first time, the United States is closing its coal plants and energy giants like E.ON and RWE are now changing their businesses towards renewables. These events are creating momentum for the Paris climate agreement and the adoption of a new climate regime,” he said.
Highlights from the report include:
- Chinese coal consumption dropped by 2.9 per cent in 2014
- The EU and USA move towards the end of coal
- Coal mining companies are on the verge of the abyss
- Coal utilities are caught in a death spiral
- Renewables are on the rise
- Coal divestment is spreading to mainstream financial institutions
Notes for Editors:
- Read the Executive Summary of the report here: http://bit.ly/1W50WTp
- Read the full report here: http://bit.ly/1OHNDUB
For further information, contact:
Mandy Jean Woods firstname.lastname@example.org / @MandyJeanWoods / +27 72 393 0027
Mike Eames email@example.com / +44 (0) 7917 052948
Sam Smith firstname.lastname@example.org / @pandaclimate / +47 450 22 149
Jan Vandermosten email@example.com / +32 472 8325 18
About WWF - WWF's mission is to stop the degradation of the earth's natural environment and to build a future in which humans live in harmony with nature. The Global Climate & Energy Initiative (GCEI) is WWF’s global programme addressing climate change, promoting renewable and sustainable energy, scaling up green finance, engaging the private sector and working nationally and internationally on implementing low carbon, climate resilient development.
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