Hungary

European Union negotiators have reached a provisional agreement on a carbon border adjustment mechanism to ensure imported emissions-intensive products pay a similar carbon price to domestic producers. The aim is to prevent EU producers from being undercut by producers in countries with no or lower carbon emissions prices. The proposed agreement covers iron, steel, cement, aluminium, fertilisers, electricity and hydrogen. From October 2023, importers will only be obliged to meet reporting obligations, with the end date of the transition period yet to be decided. The agreement is subject to ratification by the European Parliament and Council.

EU seals agreement on world’s first carbon tariff

The International Energy Agency’s Renewables 2022 report estimates renewables are estimated to grow by 2400 gigawatts (GW) over the 2022–2027 period, a growth rate 30 per cent higher than the agency forecast a year ago. The IEA estimates wind and solar will account for over 90 per cent of new renewables capacity over the next five years, underpinned by policies in China, the US and India. The agency estimates renewables will supply more electricity than coal plants by 2025. The report also outlines a scenario in which renewables grow at 25 per cent faster than its estimate, but this requires regulatory and permitting reforms and increased use of clean energy in the heating and transport sectors.

Renewable power’s growth is being turbocharged as countries seek to strengthen energy security

Researchers recently revealed that emissions from mining a single Bitcoin multiplied by 126 times between 2016 and 2021, with the cryptocurrency causing an estimated US$12 billion in global climate damage, writes Sean Cummings in Mongabay.

Climate damage from Bitcoin mining grew more than 125 times worse in just five years

According to data from the International Energy Agency, Serbia and Bosnia and Herzegovina are the only countries in the Balkans with no announced plan to phase out coal power plants. In a list of 40 countries with the largest shares of coal generation, six in the Balkans – Bulgaria, Kosovo, Montenegro, North Macedonia, Slovenia and Turkey – have announced policies to restrict or end the use of coal at some point. Bulgaria, Montenegro and Slovenia have national plans to end coal power, and North Macedonia has accepted coal generation will need to be phased out. Turkey has committed to achieving net-zero emissions but has not yet adopted an end date for coal generation. Bosnia and Herzegovina has five operating coal plants with a total capacity of 2073 MW. Serbia has four plants with a total of 4405 MW and a 350 MW unit under construction.

Coal phaseout in SEE: countries have made pledges, but some are still silent

A European Court of Auditors assessment of €12.5 billion (US$16 billion) spent between 2014 and 2020 on just transition projects in seven coal regions “has had a limited impact on both jobs and energy transition”. The review considered the funding of projects in Germany, Poland, Romania, the Czech Republic and Spain. The report found funding tended to be used for health and infrastructure projects that did little to accelerate the transition to renewable energy. The report noted that while funding was provided for retraining laid-off coal workers, a lack of data meant it was impossible to determine whether it helped find new jobs. The auditors noted that “insufficient attention” had been paid to projects to mitigate methane emissions from former coal mines.

EU auditors say aid for coal regions failed to spur climate transition

The world’s leaders are failing badly in ensuring the rapid phase-down of planet-warming emissions from coal-fired power plants in emerging economies, writes Joseph Curtin from the Rockefeller Foundation in the New York Times.

To Avoid Climate Disaster, One Task Is More Urgent Than Anything Else

The latest update of the Global Coal Exit List by the German environmental group Urgewald estimates almost half of the 1062 companies involved in thermal coal are still developing new coal projects. The 2022 update estimates about 476,000 MW of new coal power projects are still under consideration, with 61 per cent in China. The report estimates over 2500 million tonnes a year of new coal mining capacity are in some stage of development, with Coal India the single largest project developer. China, India, Australia, Russia and South Africa account for 92 per cent of the new mine capacity under consideration. “Investors, banks and insurers should ban these coal developers from their portfolios immediately,” said Heffa Schücking, the director of Urgewald.

‘Reckless’ coal firms plan climate-busting expansion, study finds

The Australasian Centre for Corporate Responsibility has filed a shareholder resolution to BHP, the world’s largest exporter of metallurgical coal, calling on the company to “proactively push” for constructive climate policies and ensure “none of its industry associations are lobbying against a 1.5°C trajectory.” The resolution also calls on the company to adopt best-practice measurement technologies for accurately measuring fugitive methane emissions from coal mining, support an end to fossil fuel subsidies and back an “enabling policy for a global green iron and steel industry.” BHP is the world’s largest exporter of metallurgical coal.

BHP Urged to Step Up Climate Advocacy by Shareholder Activists

UN Race to Zero change has a knock-on effect on global finance alliance: The mid-June decision by the United Nations-backed Race to Zero to require members to “phase down and out all unabated fossil fuels” has had knock-on effects on the Glasgow Financial Alliance for Net Zero (GFANZ). The alliance, which was “anchored in the Race to Zero campaign to ensure credibility and consistency”, has 450 finance sector members, many of which support new coal projects. In response to the policy change by Race to Zero, GFANZ stated, “there is no rationale for financing new coal projects”. An anonymous source associated with GFANZ said the Race to Zero is considering creating an inspector general role to ensure alliance members comply with policy commitments.

Finance groups risk being kicked out of Mark Carney-led climate coalition

European Union emissions trading scheme credits hit a record high of €99 per tonne (US$99.3 per tonne), driven by reduced hydro, nuclear and wind generation, increased demand and higher gas generation. The higher gas generation has driven demand for emissions credits, as extreme gas prices encouraged increased coal generation. The European Commission has announced that €29 billion (US$29 billion) up to 2030 is available to compensate energy-intensive industries to offset some of the increased energy costs caused by the cost of emissions credits.

EU carbon price hits record as gas shortages force return to coal

A study by Imperial College researchers and published by the International Monetary Fund estimates switching from coal power to renewables would result in US$78 trillion in benefits from reduced health impacts and damage from climate change. The study assessed the cost of replacing coal capacity with renewables and compensating coal utilities for their economic loss, and the value of benefits from applying a carbon price to emissions reductions to achieve the 1.5°C temperature increase goal of the Paris Agreement. The study argues that the financing needs of the transition – which could be 0.5 per cent to 3.5 per cent of wealthy countries’ GDP – are significant but is small compared to the benefits.

Phasing out coal could generate ‘social benefits’ worth $78 trillion

A new study estimates that achieving the Paris Agreement goal of keeping the global temperature increase to 1.5°C may require the early closure of a “significant portion” of coal mines and other fossil fuel projects already operating. The study modelled resources in nine of the world’s largest coal-producing countries and 25,000 oil and gas fields. The study’s central prediction was that these projects could produce 936 gigatonnes of carbon dioxide with 47 per cent from coal, 35 per cent from oil and 18 per cent from gas. The authors estimate achieving the 1.5°C target with a 50 per cent probability would require leaving 40 per cent of the developed reserves of fossil fuels unextracted.

Shut down fossil fuel production sites early to avoid climate chaos, says study

The United Nations Intergovernmental Panel on Climate Change (IPCC) estimates global unabated coal generation will need to fall by 76 per cent by 2030 to stay on track with the 1.5°C goal of the Paris Agreement. The IPCC says that limiting warming to 2°C or below will “require cancellation of new coal power projects and accelerated retirement of existing coal plants”. The report estimates global greenhouse gas emissions need to peak before 2025 and fall by 43 per cent by 2030. They also estimate that methane emissions need to be reduced by about one-third by 2030. Coal mines are a significant source of methane emissions.

UN climate report points to the need for a rapid decline in coal generation

The third annual Global Electricity Review by Ember, a climate think tank, estimates electricity demand surged by 5.4 per cent, the fastest growth rate since 2010, outpacing the growth in clean energy capacity. Coal generation increased by nine per cent in 2021, an all-time high and two per cent higher than the previous record set in 2018. Data reveals new coal generation records we set throughout Asia, including China (up nine per cent), India (up 11 per cent) and Pakistan and the Philippines (both up eight per cent). The boom in coal generation drove a seven per cent increase in greenhouse gas emissions from the power sector.

Coal generation increased in 2021

The International Energy Agency (IEA) estimates global greenhouse gas emissions increased by six per cent in 2021 compared to the year before, rebounding to a higher level than before the COVID-19 pandemic. The IEA estimates greenhouse gas emissions from the energy sector reached historic highs, exceeding the previous year-on-year increase record set in 2010. The IEA estimates coal burning accounted for over 40 per cent of the growth in 2021 of greenhouse gas emissions. Coal power plants alone accounted for an estimated 10.5 gigatonnes of greenhouse gas emissions, 200 million tonnes higher than the previous record set in 2018. The growth in coal generation occurred as electricity demand increased faster than renewables grew due to gas-to-coal switching in response to high gas prices in Europe and the US.

Increased coal use drives record greenhouse gas emissions

A review of the European power sector by the Ember, a UK-based climate policy think tank, found electricity from coal generation in European Union (EU) countries declined by just three per cent in 2021 compared to pre-COVID levels in 2019. Electricity demand in 2021 rebounded to recover almost all the decline experienced during the COVID19 outbreak, with coal generation accounting for 15 per cent of EU demand. However, a 585 per cent increase in the gas price has driven power prices higher. The report found just over half of the new renewable generation since 2019 replaced expensive gas power, with only a sixth replacing coal generation. The most significant declines in coal generation were in Spain and Greece, where coal plant closures took effect, but an increase in Poland mostly offset these.

European coal decline slows as renewables displace costly gas power

A report by the climate policy think tank Ember and Europe Beyond Coal found that only nine of 21 major European power utilities have committed to end coal generation in the European Union and OECD countries by 2030 and the rest of the world by 2040. The review found the worst-performing utilities are headquartered in Poland, Czechia, Germany, Bulgaria and Finland. The report found 16 of the 21 power utilities have adopted the goal of net-zero emissions by 2050. Five utilities – CEZ, EnBW, Fortum/Uniper, PGE and RWE – have not adopted strategies with the International Energy Agency targets of a 2030 coal phase-out in the EU and OECD countries and a 2040 end date in the rest of the world.

Report finds European utilities failing to meet 2030 coal exit target

In his annual letter to shareholders, the CEO of BlackRock, Larry Fink, has defended the fund’s approach on climate policies as being about long-term financial benefits but made no new coal or climate commitments. BlackRock is the world’s largest asset management firm with over US$10 trillion in assets under management and has an estimated US$85 billion invested in coal companies, over a quarter of which is in companies planning to expand their coal business. BlackRock’s Big Problem, an international coalition of NGO groups, said BlackRock has failed to implement coal exclusion measures announced in Fink’s 2020 letter. A report on the firm’s 2030 emissions reduction target, which was due to be published by the end of 2021, has not yet been released.

BlackRock CEO makes no new coal commitments in his annual letter

The International Energy Agency’s (IEA) Coal 2021 report estimates total coal consumption will increase by six per cent in 2021 to 7.9 billion tonnes after a 4.4 per cent decline in 2020. The IEA attributes the growth this year to a rebound in demand in China, India and the US after a decline in 2020 caused by COVID-19 restrictions. The IEA notes the bulk of the increased consumption is concentrated in China (up 159 million tonnes), India (up 125 million tonnes) and the United States (up 74 million tonnes). The IEA estimates metallurgical coal consumption will increase by only two million tonnes in 2021, with future growth contingent on increased electric arc furnace production of steel and the rate of deployment of hydrogen-based furnaces. The report acknowledges comments on the draft report from members of the IEA Coal Industry Advisory Board, a group of coal industry executives.

IEA reports coal use growth after COVID-19 rebound

A survey of residents exposed to PM2.5 fine particle air pollution from the six-week Hazelwood coal mine fire in 2014 found increased hospital admissions in the five years after the disaster. A paper in the International Journal of Epidemiology found a 10 microgram per cubic meter increase in PM2.5 pollution was associated with a nine per cent increase in hospitalisation for respiratory conditions in the next five years, especially for asthma and chronic obstructive pulmonary disease. The study, which tracked 2725 residents from an exposed town and a comparator location, found more women were affected than men.

Study finds increased hospitalisations after Hazelwood mine fire

Bloomberg New Energy Finance (BNEF) estimates global steel production could be almost greenhouse-gas-emissions-free by 2050 if US$278 billion is invested in hydrogen-fired steel production and increased electric arc furnace (EAF) production based on steel scrap. BNEF estimates hydrogen-based steel could be the cheapest option by 2050, accounting for about 31 per cent of the market. BNEF estimates EAF production could account for a further 45 per cent of steel production in 2050, up from its current share of about 25 per cent. BNEF estimates coal-based blast furnace production could fall from 70 per cent to about 18 per cent, with those plants fitted with carbon capture and storage. Other technologies would account for the balance of production. The steel sector currently accounts for about seven per cent of greenhouse gas emissions.

Study points to a declining role for coal in the steel sector

The European Union’s (EU) carbon futures price has exceeded €80 (US$90.27) per tonne for the first time, a 140 per cent increase this year. In December 2020 the carbon price crossed the €31 per tonne threshold for the first time. Since then, the EU has adopted more ambitious greenhouse gas emissions reduction targets and increased gas costs have made coal power generation more attractive. Increased coal generation has required utilities to buy more carbon allowances. Other factors affecting the carbon price include Germany’s proposed coal exit schedule and the first EU annual auction on December 20.

European Union carbon price keep rising

There were encouraging signs of the shift away from coal at COP26 but a lot of hard work lies ahead, especially in ensuring a just transition, writes Nikos Tsafos from the Center for Strategic and International Studies.

The battle for coal at COP26

The softening of the language on coal in the Glasgow Agreement followed negotiations between China, India, the US and the European Union, writes Karl Mathieson in Politico.

The coal demand that almost sunk the Glasgow climate deal

Korea Electric Power Corporation (KEPCO) announced it will slowly phase out coal generation by 2050 but is pinning its hopes on the development of carbon capture and storage to cut emissions. KEPCO, which has 35,063 MW of operating coal plant capacity, said it planned to have CCS fitted to a 500 MW coal unit and a 150 MW gas unit by 2030. The company said it aimed to halve the cost of CCS. In 2013 KEPCO commissioned a small 10 MW post-combustion CO2 capture on the 500 MW Unit 8 at its Boryeong power plant. Based on the performance of the Boryeong plant, a 2019 academic paper in Korean Chemical Engineering Research estimated it would cost about US$35 to US$44 per tonne of captured carbon dioxide, excluding the cost of transportation and storage. This would increase the cost of energy from a notional 1000 MW plant by over 54 per cent. There is currently only one commercial coal plant in the world with CCS, SaskPower’s trouble-plagued Boundary Dam 3 unit in Saskatchewan.

KEPCO pins hopes on CCS as part of coal plans

The G20 leaders’ summit has for the first time agreed to the goal of limiting global heating to 1.5°C and agreed to end international public finance for new unabated coal generation by the end of 2021. The G20 represents 19 countries and the European Union and accounts for 80 per cent of the world’s greenhouse gas emissions. However, the push by the Italian Government, which hosted the talks, to get the G20 to agree to a transition away from domestic coal power was blocked by the major fossil fuel producing and consuming countries of Australia, Russia, India and China. The failure to agree on cuts to domestic coal generation has cast a shadow over the COP26 conference in Glasgow with both the United Nations and the UK expressing concern about the ability to make further progress on restrictions on coal.

G20 resolution on coal phase-out blocked by a handful of countries

Bloomberg Philanthropies, the foundation that was established by former New York Mayor Mike Bloomberg, has announced it will increase funding support to groups in seven countries and the European Union which are working to retire existing coal plants and switch to clean energy. It will also provide funding and other support to groups in 25 countries where coal generation is projected to grow and where it is not currently providing support. The foundation said its aim is to close a quarter of the world’s 2445 remaining coal plants by 2025 and ensure all 519 proposed coal plants do not proceed.

Bloomberg Philanthropies to expand anti-coal support

A report to the United Nations estimates current government plans and projections could result in 240 per cent more coal being produced in 2030 than is consistent with the Paris Agreement goal of limiting global warming to 1.5°C. The Production Gap Report 2021, prepared by the Stockholm Environment Institute, argues coal production will have to decline by 11 per cent per year between 2020 and 2030 to be consistent with a 1.5°C pathway.

Report estimates coal production overshoot for 1.5 degree target

Ahead of the COP26 climate conference in Glasgow the World Health Organization (WHO) has backed the need for a “complete phase-out of coal” by 2030 in OECD countries “at the very latest” and 2040 in non-OECD countries. The WHO called on the world’s leaders to “avert the impending health catastrophe by limiting global warming to 1.5°C” and warned in its Special Report on Climate Change and Health that “the burning of fossil fuels is killing us”.

World Health Organization backs 2030 end for coal in OECD countries

In its latest World Energy Outlook, the International Energy Agency (IEA) notes coal generation provides only one-third of global electricity but is responsible for nearly three-quarters of power sector carbon dioxide emissions. In its Net Zero Emissions scenario the IEA estimates coal plant retirements will have to approach 100,000 MW a year to 2030, which is almost double the rate of retirements which have already been pledged by governments. The IEA estimates coal demand will decline by about 10 per cent by 2030 in line with announced government commitments but this would increase to a 55 per cent decline if governments implement measures to reach the target of net zero emissions by 2050.

International Energy Agency outlines need to accelerate coal phase-out

The 2021 Global Coal Exit list published by Urgewald and 40 other NGOs estimates 503 of the 1030 companies that form the bulk of the global coal mining and power industry are still planning new mines, power plants or coal infrastructure. The report by the groups estimates the proposed projects represent up to 480 GW of new coal-fired power capacity and 1.8 billion tonnes of coal a year and 480,000 MW of new coal plant capacity. Of the companies on the list only 32 have announced coal exit dates consistent with achieving the goals of the Paris Agreement. However, they note that many major companies’ exit from coal amounts to selling assets to another company rather than closing the capacity and retiring them from production.

Report finds most coal mining and power utilities still planning to expand

The World Health Organization’s (WHO) new Global Air Quality Guidelines has cut the recommended standard for PM2.5 fine particle pollution from 10 micrograms per cubic meter (μg/m3) to 5 µg/m3. It also slashed the recommended nitrogen dioxide level by 75 per cent from 40 µg/m3 to 10 µg/m3. The WHO estimates up to 80 per cent of the deaths caused by PM2.5 fine particle pollution could be avoided if the new standard is implemented. Estimates of the annual death toll from PM2.5 pollution are between 3 million and 8 million deaths per year. The WHO’s air pollution guidelines were last updated in 2005.

World Health Organization tightens air pollution guidelines

A coalition of national governments – Sri Lanka, Chile, Denmark, France, Germany, Montenegro and the UK – have launched the No New Coal Power Compact, which requires supporters to cease permitting of new coal power plants and end new construction of unabated coal plants by the end of 2021. Signatory countries are aiming to enlist other countries to sign on to the compact ahead of the COP26 climate negotiations in Glasgow in November. Malaysia, which currently has five coal plants with a combined capacity of 13,424 MW, has announced it will not build any new coal plants. Prime Minister Ismail Sabri Yaako said Malaysia will build several gas plants to replace existing coal plants.

Global coalition launched to build support for end to coal plants

A report by researchers at University of Oxford have excluded carbon capture and storage (CCS) fitted to fossil fuel plants from a model of the world’s future energy system on the grounds the technology is unlikely to ever be competitive. The report noted the technology is currently a very small, low-growth sector and in the 50 years since its inception “has exhibited no promising cost improvements”. The researchers concluded that within a few decades electricity produced with CCS “will likely not be competitive even if CCS is free.”

Report estimates carbon capture not competitive even if free

A report for the World Business Council on Sustainable Development estimates the provision of process heat for industry accounted for 29 per cent of final energy use in 2018, with greenhouse gas emissions from the sector on a par with those from transport. The report estimates coal was used to produce 41 per cent of the energy used for industrial heat applications. Bloomberg New Energy Finance estimates China, France, Germany, Italy, South Korea and the UK are the most likely countries to deploy renewables based-industrial heat as they have electricity prices that are competitive with gas, existing providers of renewable heat solutions and favourable government policies such as a carbon price.

Report charts alternatives to coal in industrial uses of heat

The global pipeline of new coal plant projects has already shrunk dramatically since 2015, bringing the world closer to a pathway consistent with international climate goals, write Leo Roberts from E3G and Christine Shearer from Global Energy Monitor in Carbon Brief.

World’s coal-power pipeline has shrunk by three-quarters

Research by CEE Bankwatch Network and the Centre for Research on Energy and Clean Air estimates pollution from 18 coal plants in the Western Balkans was responsible for 19,000 premature deaths between 2018 and 2020. The study, which examined emissions from coal plants in Serbia, Kosovo, Bosnia and Herzegovina, North Macedonia and Montenegro, estimates about half the deaths occurred in surrounding European Union (EU) countries due to the long-distance transport of sulphur dioxide emissions. The study estimates sulphur dioxide emissions from the 18 plants are 2.5 times greater than all 221 coal plants in the EU. The plants continue to operate in breach of the requirements of the pollution standards of the Large Combustion Plants Directive.

Study estimates Western Balkans coal plants caused 19,000 deaths

Placing a 1.5 degree C-centred scenario at the heart of the International Energy Agency’s World Energy Outlook would model the pathways needed to allow countries, companies and communities to cooperate toward this goal, writes Rebecca M Peters in Scientific American.

The IEA needs to make a 1.5 degree target the centrepiece of its World Energy Outlook

Environment ministers from the Group of 20 (G20) nations remain divided over setting an end date for coal power. Italy and the UK pushed for a 2030 coal end date but this was opposed by Russia, India, China and other countries. The President of the G20 stated that “despite a prolonged and tireless discussion” to set a date to phase out coal and end international public coal” a consensus view could not be reached. The failure to agree on an end date raises doubt about how far the COP26 climate negotiations in Glasgow in November will progress if agreement cannot be reached on the issue. The G20 group of countries will meet again ahead of the COP26 conference. The G20 countries account for about 80 per cent of global greenhouse emissions.

G20 divided over push to phase out coal power

The International Energy Agency (IEA) estimates the global economic rebound could result in electricity demand growing by almost five per cent in 2021 and four per cent in 2022, with the bulk of the growth occurring in the Asia-Pacific region. The IEA estimates about half the increase will be in China with global carbon dioxide emissions increasing by 3.5 per cent in 2021 and 2.5 per cent in 2022. The IEA estimates that while combined hydropower, wind and solar generation will grow by about eight per cent in 2021 and six per cent in 2022, the growth will be outpaced by additional thermal power generation, particularly coal power. The agency estimates coal generation is set to increase by almost five per cent in 2021 and a further three per cent in 2022. Last year the IEA estimated coal generation would need to fall by over six per cent a year to reach the target of net zero emissions by 2050.

IEA warns of coal generation rebound

A study by Boston University’s Global Development Policy Centre estimates China accounted for only 13 per cent of total financing for overseas coal power projects between 2013 and mid-2019. However, in that period China accounted for 50 per cent of global public finance commitments for overseas coal projects. The study estimates 87 per cent of public and private finance for overseas coal plants is funded by major private and public financial institutions from Japan, the US and UK. The authors endorse the need for phasing out public and private overseas coal projects but also urge the G20 group of countries to formalise a framework for disclosure of coal plant funding “so the global community can properly track, monitor and hold public and private actors accountable to new commitments.”

Private finance dominates public funders of coal plants

A review by the Centre for Research on Energy and Clean Air (CREA) of sulphur dioxide emissions from 18 coal plants in the Western Balkans found they emit twice as much as all 221 coal plants in the European Union (EU). The plants are in Bosnia and Herzegovina, North Macedonia, Montenegro, Serbia and Kosovo. Under the terms of the 2005 Energy Community Treaty, 17 of the 18 plants are required to meet the pollution control standards of the EU’s large combustion plant directive to cut sulphur dioxide, and nitrogen oxides and dust pollution. CREA found that three years after the January 2018 deadline only two plants have installed desulphurisation equipment and in neither case is it in commercial operation. The other plants either have no plans to close or to fit pollution control equipment despite the threat to public health.

Pollution from Western Balkan coal plants dwarfs European Union emissions

The World Business Council for Sustainable Development (BCSD), a lobby group representing 200 major multinational companies, has joined the Powering Past Coal Alliance. BCSD stated it would “leverage” its global network of 60 partner national business organisations “to develop coal-free supply chain plans, in addition to their commitments to renewable deployments.” BCSD partner groups represent about 5000 major companies.

Global industry lobby group flags need for coal-free supply chains

New research published in Environmental Research Letters argues limiting global heating to a 1.75°C increase in global temperatures without relying on uncertain large-scale carbon dioxide removal technologies will require a 70 per cent fall in carbon dioxide emissions by 2030. This would require the almost total elimination of unabated coal consumption by 2030. The authors estimate excluding reliance on carbon removal technologies would require dramatically more ambitious action including the commission of 1000 gigawatts (GW) of new renewables capacity a year by the mid-2020s. This would be four times greater than current renewables installation rates.

Study urges accelerated coal phase-out to avoid reliance on novel technologies

The world’s steel sector could put an estimated US$70 billion of investment at risk of stranding if it pursues investment in new carbon-intensive steel projects, writes Caitlin Swalec from Global Energy Monitor in Carbon Brief.

Steel plants poised to become stranded assets or bust climate targets

A global review by the International Renewable Energy Agency (IRENA) of the costs of renewable energy in 2020 has found the cost of onshore wind generation fell by 13 per cent, offshore wind by 9 per cent and solar PV by 7 per cent compared to 2019. IRENA estimates 800,000 MW of existing coal plants generate power that is more expensive than electricity from new solar or onshore wind projects commissioned in 2021. The report estimates 141,000 MW of installed coal capacity in India is now more expensive than new renewable capacity. It estimates 149,000 MW or 61 per cent of coal capacity in the US is more expensive than new renewables. In Germany, which is currently under pressure to bring its coal exit date forward from the legislated end date of 2038, IRENA estimates no coal generation is cheaper than new renewables.

Falling cost of renewables undercuts new and existing coal generation

Proposals to build hundreds of new coal mines could raise global output of the fossil fuel by 30%, putting the world’s climate goals and up to US$91 billion of investment at risk, writes Ryan Driskell Tate from Global Energy Monitor in Carbon Brief.

Hundreds of planned coal mines ‘incompatible with 1.5°C target’

The final communique of the G7 countries agreed to “commit now to an end to new direct government support for unabated international thermal coal power generation by the end of 2021”. It remains unclear whether Japan will change its policy to reflect this with an official stating only that “something should be announced by the end of the year.” The G7 leaders – from Canada, France, Germany, Italy, Japan, the United Kingdom, the US and the European Union – failed to set a 2030 end date for domestic coal power generation with Japan in particular objecting. The compromise text stated the G7 countries committed to “an overwhelmingly decarbonised power system in the 2030s” and to “accelerate the transition away from unabated coal capacity.”

Mixed result on coal from G7 leaders summit

An international coalition of investors –including JPMorgan, Fidelity, BNP Paribas and Amundi and Sumitomo Mitsui – are pressing five major Asian power utilities to phase out use of coal in line with the goals of the Paris Agreement. The five utilities – China Resources Power Holdings and CLP Holdings, Malaysia’s Tenaga Nasional Berhad, Japan’s Chubu Electric Power and J-Power – are major greenhouse gas emitters with significant coal plant capacity. The Asian Investor Group on Climate Change, which has which has 56 members, plans to target Asian utilities not being lobbied by the Climate Action 100+ initiative.

Investors pressure five Asian power producers to exit coal

The G7 environment ministers have agreed the Paris Agreement target of limiting global heating to a 1.5 degree temperature increase requires an end to the financing of new coal plants without carbon capture and storage. The communique issued by the ministers stated member countries agreed to end “new direct government support” for coal plants by the end of 2021. G7 member countries – Canada, France, Germany, Italy, Japan, the United Kingdom, the US and the European Union – agreed to review trade, export and development finance polices in line with the commitment. Japan reportedly resisted the proposed end to financing new coal plants, arguing China could fill the void, but ultimately supported the commitment.

G7 ministers agree to end support for new coal plants in 2021

In the view of the IEA the world needs a “radical” shift towards renewables to reach net zero emissions by 2050 and secure the 1.5°C goal, writes a team of authors for Carbon Brief.

IEA: Renewables should overtake coal ‘within five years’ to secure 1.5°C goal

The International Energy Agency (IEA) estimates renewables will account for about 90 per cent of all new electricity generation capacity additions in 2021 and 2022. The IEA reports a 90 per cent increase in wind capacity additions was complemented with a 23 per cent increase in solar capacity to almost 135,000 megawatts (MW) in 2020. The report states 80 per cent of the increase in renewables capacity in the year to the end of 2020 were in China where project developers had to meet a deadline to qualify for a feed-in tariff. The IEA anticipates the high level of renewables deployment will continue with 270,000 MW becoming operational in 2021 and 280,000 MW in 2022, an installation rate 50 per cent higher than occurred between 2017 and 2019.

Renewables eclipse fossil fuels in new capacity estimates by International Energy Agency

Analysts argue the carbon allowances in the European Union's Emissions Trading System (ETS) are likely to remain at over €50 per tonne (US$61 per tonne). They argue the recent price surge has been driven by banks and investors who estimate future prices will trend higher to meet the European Parliament’s target of cutting emissions by 2030 to 55 per cent of 1990 levels. The surge in ETS allowances from less than €10 per tonne (US$12 per tonne) in 2018 will have the effect of making most EU coal generation unprofitable. Refinitiv estimates European power emissions will be 50 million tonnes lower this year than they would be without a carbon price. However, as the allowances apply to industrial sectors as well as power generators, some analysts warn that some industry groups may lobby for loopholes to ease financial pressure on industries that are unable to switch quickly to low-carbon alternatives.

European Union carbon price tipped to stay high

The International Energy Agency (IEA) estimates coal demand could increase by 4.5 per cent in 2021, nearing its 2014 peak. The IEA’s Global Energy Review 2021 estimates three-quarters of the increase in coal demand is attributable to the electricity sector. The IEA estimates 80 per cent of the growth is in Asia with China accounting for much of the increase. Electricity generation from wind and solar are projected to increase by 17 per cent and 18 per cent respectively compared to 2020. However, the increase in coal generation is expected to be 60 per cent greater than the rise in renewables generation.

International Energy Agency forecasts coal generation surge in 2021

The development of a fossil-fuel registry documenting the amount of embedded carbon dioxide in coal, oil and gas projects globally will help governments and international organisations plan for the low-carbon world ahead, writes Mark Campanale in the Financial Times.

A carbon registry leaves polluters with nowhere left to hide

A review of global electricity generation estimates growth in wind and solar helped push coal power to a record fall of 4 per cent in 2020. However, the report by the energy think tank Ember notes the International Energy Agency’s model estimates coal generation needs to decline by 14 per cent a year to achieve net zero emissions by 2050. The report estimates wind and solar generation grew by 15 per cent in 2020 but capacity will need to accelerate as coal generation is increasing in China, India and the US as the economic shock from COVID-19 diminishes. In 2020 coal generation declined in four major OECD countries with a 20 per cent decline in the US, a 13 per cent fall in South Korea and falls of five per cent and one per cent in India and Japan respectively. China’s coal generation now accounts for 53 per cent of global coal generation.

Coal generation dipped in 2020 but rebound may outpace renewables

A report by Global Energy Monitor estimates the construction or expansion of 432 proposed new or existing coal mines could release about 13.5 million tons of methane a year, a 30 per cent increase on current emissions from coal operations. As methane in the atmosphere absorbs far more energy than carbon dioxide, it is ranked as a very potent greenhouse gas. The report estimates the proposed new and expanded mines, many in some of the gassiest coal formations, would add between 378 million tonnes and 1.13 billion tonnes of methane over 20-year and 100-year time horizons respectively. The bulk of the mines reviewed, which have a combined capacity of 2.3 billion tonnes a year, are in China, Russia and Australia.

Report reveals methane emissions risk from new coal mines

The board of HSBC has agreed to table a resolution proposing to phase out finance for coal plants in the European Union and OECD countries by 2030. The ban on coal finance will extend globally by 2040. The resolution follows ShareAction and a coalition of investors, which have US$2.4 trillion under management, proposing their own resolution. The Rainforest Action Network estimates that HSBC is Europe’s second largest financier of fossil fuels. The company’s resolution, which will be binding on the board if agreed to by 75 per cent of the shares voted, will be put to the company’s annual general meeting on May 28. ShareAction and the investor coalition have withdrawn their resolution but flagged they would resubmit a resolution next year if dissatisfied with HSBC’s implementation of its policy.

HSBC shareholders to vote on coal financing exit

Global Energy Monitor (GEM) has launched the Global Coal Mine Tracker which profiles all of the world’s coal mines with a capacity of over 5 million tonnes per annum and every proposed mine with a capacity of 1 million tonnes per annum. The map and underlying data will be updated every six months with the aim of including all mines producing over one million tonnes by the January 2022 edition. GEM has also launched the Global Steel Plant Tracker which documents all steel plants currently producing over one million tonnes of crude steel per year. The steel plant tracker is currently being expanded to include all plants over the one million tonne threshold which have been proposed, mothballed or retired since 2020.

New coal mine and steel databases launched

Increasing pressure to decarbonise heavy industry sectors has spurred some major companies to invest in pathways to cut coal from steel production, writes Michael Pooler in the Financial Times.

‘Green steel’: the race to clean up one of the world’s dirtiest industries

Research by Harvard University and others has estimated that fine particle pollution from fossil fuels accounted for about 8.7 million deaths or 18 per cent of all 2018 deaths. The study, which was published in the journal Environmental Research, noted its estimate is far higher than the 4.2 million deaths the 2019 Global Burden of Disease report published by The Lancet. The authors of the latest study state they undertook more detailed modelling of the health impacts of PM2.5 fine particle air pollution. The study found the greatest premature death toll due to fine particle air pollution occurs in India (2.5 million) and China (2.4 million), followed by parts of eastern US, Europe and Southeast Asia.

Study estimates global death toll from fossil fuel pollution at 8.7 million

Europe's foreign ministers have called for the “phasing out of unabated coal in energy production and – as a first step – an immediate end to all financing of new coal infrastructure in third countries.” The inclusion of the wording on the coal phase out was initially opposed by Poland, but Poland changed its stance when the draft was amended to allow coal power with carbon capture and storage. The ministers emphasised the need for international initiatives to support a just transition away from “unabated” coal power and also to reduce methane emissions.

European Union calls for global coal power phase out

A new report by energy think tanks Ember and Agora Energiewende has found that in 2020 renewable generation in the European Union countries surpassed fossil fuel generation for the first time. Fossil fuel generation fell from 40 per cent in 2019 to 37 per cent in 2020 with renewables rising from 35 per cent to 38 per cent. The report notes wind and solar generation respectively rose by nine per cent and 15 per cent in 2020 with the share from hydro and biomass remaining unchanged. Coal generation fell by 20 per cent in 2020 and has nearly halved since 2015.

Report reveals Europe’s coal power has halved since 2015

While many experts believe coal is now in an unstoppable death spiral, the pace of change is slow when compared to the scale of the climate crisis we face, writes Laura Paddison in HuffPost.

The world’s long, messy breakup with coal

An executive order by President Biden includes a commitment to “identify steps through which the United States can promote ending international financing of carbon-intensive fossil fuel-based energy” while promoting green development. While details of what is intended are yet to be finalised, NGO groups have welcomed the announcement as a major breakthrough if it includes coal, gas and oil. To the dismay of First Nations and environment groups, an executive order freezing the sale of leases to produce oil and gas from public land excluded coal leases.

President Biden signals shift away from international financing for fossil fuels

Hungary’s Secretary of State for European Union Affairs, Attila Steiner, has confirmed the 884 MW Matra lignite plant, the country’s last, will be closed by 2025. The expansion of the 50-year-old plant had been mooted over the last decade but was blocked after a court ruling set aside the environmental permit for a new 500 MW unit. The government told the Powering Past Coal summit it now plans to increase solar capacity to 6000 MW and use European Union funds to retrain workers affected by the closure of the Matra plant. Hungary had previously been planning on the Matra plant operating until 2029, at which point some of the units would have been 60 years old.

Hungary confirms coal exit by 2025

Two German states — Eastern Saxony-Anhalt and Brandenburg — have ruled out following the commitment of North Rhine-Westphalia to bring forward the coal phase-out date from 2038 to 2030. A third eastern state, Saxony, had previously ruled out an accelerated phase-out. Legislation adopted in 2020 set 2038 as the end date, with the goal of bringing it forward to 2035 if possible. Eastern states have developed major lignite mines and power plants and have strongly resisted proposals to close coal plants.

Second east German state government leader rejects faster 2030 coal phase-out

Poland’s General Director for Environmental Protection has approved PGE’s Environmental Impact Assessment for the proposal to extend the operation of the Turow lignite mine to 2044. PGE has yet to obtain a licence for the project. The mine is near the borders of both the Czech Republic and Germany. Residents across the borders oppose mine extension due to the impacts on groundwater supplies and structural damage caused to buildings by drawdown. In late 2020 the European Commission found Poland had violated European law in assessing the project. After prolonged negotiations, the Czech Government agreed to a compensation package, and Poland agreed to reassess the project. Residents remain opposed to the proposal and have indicated they will file further legal challenges against the project.

Flawed Turów Coal Mine Assessment Gets Green Light

A report by FERN, a Belgian NGO, finds that the Czech power utility EPH has exploited loopholes in the European Union’s (EU) Renewable Energy Directive that allow member states to provide subsidies for biomass from forests even when used in coal plants. EPH has interests in coal and lignite plants in France, Germany, Italy, the Czech Republic, the UK and Slovakia. The report estimates that EPH will burn about 4.6 million tonnes of wood in 2022 in its coal power plants. Emissions from burning biomass are also exempt from the EU Emissions Trading Scheme due to accounting rules attributing the emissions to the country producing the forest products. Fern estimates EPH is on track to generate 6.3 million tonnes of greenhouse gas emissions from biomass in 2022, which would cost about €502 million (US$502 million) if EU carbon credits were required.

Report says Czech utility's biomass push prolongs life of coal plants

The 250 megawatt (MW) Brikel lignite-fired plant linked to Bulgarian businessman Hristo Kovachki continues to operate despite residents, environmentalists and regulators’ complaints that the plant breaches pollution standards, writes Elitsa Simeonova in Radio Free Europe.

'We Breathe Filth': A Bulgarian Town's Losing Battle Against A Domineering Coal Plant

Romania’s Ministry of Energy has released a draft ordinance for public debate, suggesting the end of 2030 as the date for a complete phase-out of coal power. Last year Romania proposed the end of 2032 as the target date for an exit from coal generation. Romania currently has nine operating coal plants with a combined capacity of 4675 MW, with another 330 MW plant mothballed. It proposes that 990 MW of combined capacity at plants operated by state-owned Complex Energetic Oltenia, with a combined capacity of 990 MW, be placed in reserve in 2026. The plan proposes new gas generation and a small modular nuclear reactor be commissioned by 2030. Small modular reactors are a notional technology with no units in commercial operation.

Romania to accelerate coal phaseout deadline to 2030

Sweden’s national pension fund, AP7, had added a further nine companies to its investment blacklist for failing to adopt transition plans away from coal in line with the Paris Agreement. Four of the newly blacklisted companies – Indian company Adani Enterprises, Indonesian company United Tractors, and Chinese companies Guanghui Energy and Aluminium Corporation of China – were excluded because of their role in coal mining. Five other companies were dropped for their continued operation of coal power plants. Three of these were Chinese companies – China Hongqiao Group, Shenergy and Shenzhen Energy Group – plus the state-owned Malaysian utility Tenaga Nasional Bhd and the Filipino company Metro Pacific Investments.

AP7 dumps 14 more coal and oil sands firms without transition plans

The Greek Parliament has passed legislation that sets a target for exiting coal generation by 2028 and a goal of renewables accounting for up to 70 per cent of final energy consumption by 2030. Greece currently has three operating coal plants with a combined capacity of 1925 MW and a further 660 MW lignite unit currently under construction. In 2019 the government announced it planned to shut all operating lignite plants by 2023 and all coal plants by 2028. In May 2021, the government was more bullish, stating the coal phase-out would be brought forward to 2025 with the new Ptolemaida V unit converted to run on gas. The latest change in coal exit dates follows the invasion of Ukraine and a new policy of cutting Russian gas imports and increasing domestic lignite-based coal generation.

Greece begins net-zero journey with new climate law

Portugal’s accelerated exit from coal power offers lessons on managing a transition, the role carbon pricing and renewable investments can play, and how utilities have to be involved in the development of just transition plans, writes Anna Gumbau in EnergyMonitor.

What Europe can learn from Portugal’s accelerated coal exit

The Polish Power Plants Association (TGPE), which represents utilities including PGE, Tauron and Energa, has launched a €2.6 million (US$2.95 million) campaign inaccurately blaming the European Union’s climate policies for 60 per cent of the cost of electricity. A news outlet reported the idea for the campaign originated with the Ministry of State Assets, the Polish Government agency responsible for negotiating with the European Commission over state aid for coal mines and power plants. The campaign, featuring billboards and TV advertising, was dismissed by European Commission Vice President Frans Timmermans as misleading.

Polish utilities bankroll campaign against European climate policy

Can Germany show us how to leave coal behind?

The European Commission (EC) has warned Poland it is preparing to cut budget payments due to its refusal to follow a September 2021 European Court of Justice (ECJ) order to pay a €500,000 (US$467,000) fine for each day the Turow mine continues to operate. The outstanding fine now amounts to over €50 million (US$57 million). In May 2021 the ECJ directed Poland to suspend operations at the mine until the completion of the legal case brought by the Czech Republic over the cross-border impacts of the mine. Poland said that despite two requests from the EC to pay the outstanding amount, it had no intention of suspending the operation of the mine or paying the fine. The Czech Environment Minister, Anna Hubackova, is reportedly scheduled to visit Poland to negotiate a possible out-of-court settlement.

European Commission flags withholding payments to Poland over mine dispute

A report by the Institute for Energy Economics and Financial Analysis estimates Polish taxpayers would save at least €141 billion (US$160 billion) if the government phased out coal generation by 2030 and instead invested in low-carbon power generation alternatives. It calculates the savings could be about €200 billion (US$227 billion) if European Union carbon prices rise and Polish coal plants continue to operate though to 2040. Poland’s latest power development plan, PEP2040, proposes the development of offshore wind projects, nuclear plants and a transition plan for coal regions. However, it also includes phasing out onshore wind farms. As part of the plan, three partly state-owned companies – PGE, Tauron and Enea – will offload their existing coal plants to a new government-owned entity to free the utilities to develop new energy projects. Poland has 50 operating coal plants, with a combined capacity of 30,170 MW, which generate about 70 per cent of the country’s electricity.

Report argues big savings for Polish taxpayers in early coal phase out

The new government of the Czech Republic has announced the country will phase out coal power by 2033. A coal commission appointed by the previous government had recommended a coal phase-out by 2038. The agreement between the five parties forming the new government led by centre-right Prime Minister-designate Petr Fiala has committed to closing the plants earlier. The Czech Republic has 26 coal plants with a combined capacity of 7906 megawatts (MW) which generate about half of the country’s electricity. Europe Beyond Coal said the government needed to accelerate the transition to align with a 2030 target date. The coal commission’s modelling had assumed a European carbon price of 30 euros per tonne in 2030, modest growth in renewables generation and no coal plants closing before 2029. The carbon price is now trading at over 80 euros per tonne. A spokesperson for Greenpeace said the trend across Europe was for accelerated closures and expects the same will occur in the Czech Republic.

Czech Republic set to phase out coal power by 2033

The District Court in Gliwice has awarded Oliwer Palarz, a resident of the city of Rybnik, 30,000 zlotych (US$7307)) for infringing his personal rights to health and freedom caused by extreme air pollution in the town. The judge ruled the state treasury had committed “unlawful neglect” in allowing the air pollution to continue. Paralz, who is one of the founders of a local branch of Polish Smog Alert, welcomed the decision and hoped it would push the government to improve the country’s air quality. PGE’s 1720 MW Rybnik plant is on the edge of the city with other major coal plants in the region. However, the judge cautioned his ruling did not mean every citizen could sue the government because pollution standards had been exceeded.

Polish court fined government for air pollution

A report by the Instrat Foundation estimates Polish electricity prices will increase by 800 zlotych (US$194) per year by 2030 if the government sticks to its Polish Energy Policy 2040 which has renewables at only 32 per cent of generation. Instrat estimates increasing renewables share of generation to 70 per cent by 2030 would be 20 per cent cheaper than retaining a heavy reliance on coal power even after allowing for transmission upgrades. The report argues the European Union’s climate policy and the need to retire old and uneconomic coal plants will require the government to increase the role for renewables beyond its current policy.

Report finds Polish power bills would be cheaper with renewables switch

Italy’s Ministry for Ecological Transition has approved Enel’s proposal to close the 600 MW coal unit at its La Spezia power station this year. Together with the closure of two coal units at the Andrea Palladio plant, Enel is on track to close 870 MW of coal capacity this year. At the end of last year, Enel closed a 605 MW coal unit at its Brindisi plant and had previously closed coal units at two other plants. By the end of this year, the utility will have closed 1900 MW of coal capacity. However, the utility is planning to convert two coal units at its Andrea Palladio plant to become an 840 MW combined cycle gas plant.

Italian regulator approves closure of 600 MW coal plant

A candidate for Minister for Environment in the next government of the Czech Republic, Anna Hubackova, has suggested it would be best to phase out coal “by 2030, 2033 at the latest”. The coalition agreement for the incoming government led by Prime Minister-designate Petr Fiala has committed to phasing out coal before 2038. A commission established by the outgoing government had recommended 2038 as the end date for the country’s 26 coal plants which have a combined capacity of 7906 MW.

Czech Republic could exit coal by 2033 “at the latest”

A report by Ember, a climate think tank, predicts the agreement by coalition partners in the new German Government to aim to phase out coal power by 2030 would leave Poland, Czechia and Bulgaria responsible for over 95 per cent of the European Union’s (EU) coal generation. The report estimates that on current plans Poland alone will be responsible for 65 per cent of the remaining EU coal generation in 2030. The three countries are proposing to reduce coal generation by 42 per cent between 2015 and 2030 compared to a 99 per cent reduction by other EU countries.

Germany’s coal phase-out will isolate European stragglers

Croatian Prime Minister Andrej Plenkovic announced at the COP26 conference in Glasgow that the country’s only coal plant, the 200 megawatt (MW) Plomin power station, will close by 2033 at the latest. The announcement has been welcomed by Europe Beyond Coal which said it expected the plant, which accounts for 40 per cent of Croatia’s greenhouse gas emissions, to close by 2030 at the latest. In 2017 the government announced that it planned to extend the life of the 125 MW Unit 1 by 15 to 20 years without environmental assessment. However, a fire at the 1969 vintage plant resulted in the unit being closed leaving just the 200 MW Unit 2 operating.

Croatia announces 2033 coal phase-out

The three potential coalition partners in Germany's new government – the centre-left Social Democrats, the Greens and the pro-business Free Democrats – have agreed to include an end of coal power generation by 2030 and expansion of renewables as a central issue in their negotiations. Germany’s current coal exit legislation sets the end date at 2038 by the latest. However, a recent the Constitutional Court decision ruled the country's 2019 Climate Protection Act is unconstitutional and needs a more ambitious emissions reduction target. The finalisation of a coalition agreement is possible before Christmas but the Free Democrats’ support for a minority government is not guaranteed.

German parties agree to negotiate over 2030 coal exit

Bulgaria’s interim Prime Minister, Stefan Yanev, said the coronavirus recovery plan submitted to the European Commission will propose 2038 or 2040 as the country’s end date for coal generation. Bulgaria currently has 12 operating coal plants with a combined capacity of 4829 megawatts (MW). The Bulgarian Government will have to negotiate an agreed coal phase-out date with the commission before it can access funds from the €800 billion (US$930 billion) pandemic recovery package. Greenpeace Bulgaria said the late end date ignored the financial problems with the 1602 MW Maritsa East 2 lignite plant which is subject to a legal challenge over breaches of European pollution standards.

Bulgaria unveils pitch to keep struggling coal sector going to 2040

The Romanian Government’s National Resilience and Recovery Plan submitted to the European Commission has confirmed the country will phase out coal and lignite power generation by 2032. Romania currently has nine operating coal plants with a combined capacity of 4675 megawatts (MW) with most burning lignite. Under the plan, three-quarters of current coal capacity will be closed by 2025 leaving just 850 MW online until 2032. In late May a leaked government economic recovery strategy proposed phasing out domestic coal mines and power plants to help decarbonise the economy and setting a target of sourcing 34 per cent of electricity from renewables by 2030. Romania’s commitment has been cautiously welcomed by Europe Beyond Coal and other NGOs which are hopeful the final retirement will be brought forward to 2030 or earlier once a clean energy transition is underway.

Romania confirms 2032 coal power end date

The Italian-headquartered utility Enel has announced it will accelerate the retirement of its coal fleet by bringing the end date forward from 2030 to 2027. In its recent half-yearly report, Enel stated it had 8904 MW of coal capacity with 5594 MW of that in Italy, 2764 MW in Spain and Portugal and the remainder in Colombia and Chile. In mid-2020 Enel’s head of power generation, Antonio Cammisecra, said the company would be out of coal generation in Italy by 2025 and “mostly” elsewhere too. In the last year Enel has announced the closure of its 660 MW Brindisi plant in Italy, gained approval for the closure of two plants in Spain and the early retirement of one in Chile.

Enel brings coal retirement forward from 2030 to 2027

The European Court of Justice has ordered Poland to pay the European Commission €500,000 (US$586,000) for each day the Turow lignite mine continues to operate until the Czech Republic’s legal challenge against the extension of the permit for the mine has been finalised. In May the court ruled the expansion of the mine is likely to “have negative effects on the level of groundwater in Czech territory” and ordered the mine cease operation during the legal challenge. Despite the order, the mine continued operating, prompting the Czech Republic to seek a €5 million penalty per day. Poland applied to the court requesting the original injunction be overturned. Poland's Deputy Minister of Justice, Marcin Romanowski, said Poland won’t pay a cent of the fine. Europe Beyond Coal has called on Poland and state-owned power company PGE to comply with the court order and begin Bogatynia region’s transition away from coal.

Poland fined €500,000 each day the Turow mine keeps operating

Report urges closure of surplus European fossil fuel capacity: A report by TransitionZero and the Centre for Research on Energy and Clean Air estimates Bulgaria, Czech Republic, Germany, Italy, Netherlands, Poland, Romania, Spain, and Turkey have close to 38,000 MW of excess coal capacity that can be retired. The retirement of these plants would avoid 200 million tonnes of carbon dioxide emissions a year and save €1.7 billion (US$1.9 billion) annually. The report estimates Spain, Italy and Germany have 10,000 MW, 3000 MW and 8000 MW of surplus coal capacity respectively.

Report urges closure of surplus European fossil fuel capacity

The International Energy Agency (IEA) has advised the Czech Government that phasing out coal power before the 2038 deadline proposed by the coal commission “is conceivable purely based on economic considerations”. The IEA review stated the best prospect for additional capacity is with renewables and estimated there is potential for up to 7000 MW of solar capacity and 1600 MW of wind capacity by 2030. However, the review found the government’s current proposals for additional renewable capacity “appear to lack ambition” and urged the adoption of strategies to exploit renewables potential.

IEA urges Czech Republic to plan for a faster coal phase-out

HSE, the owner of the 945 MW Sostanj plant and the associated Velenje lignite mine, is reportedly seeking financial support from the Slovenian Government. The power plant reported a €280.4 million (US$330 million) loss in 2020 due to the rising EU carbon price. According to a local news website, HSE informed a Slovenian government agency that manages state assets that the remaining €650 million (US$767 million) value of the plant should be written off.

Slovenia’s coal utility seeks bailout to offset carbon costs

Poland’s Prime Minister Mateusz Morawiecki has sought to blame Europe for the price of a tonne of carbon in the European Union’s (EU) Emissions Trading System rising above €60 (US$71). The government-owned power utility, PGE, is reportedly seeking to increase domestic power prices by up to 40 per cent. PGE has spent almost €440 million (US$518 million) in the first quarter of 2021 to cover the cost of carbon dioxide permits, an increase of 22 per cent on the same period in 2020. The EU carbon price is now 12 times higher than it was four years ago. Lidia Wojtal from Agora Energiewende, a German climate policy think tank, said Polish utilities started investing in renewables last year but these decisions “should have been taken at least a decade ago”.

Polish utilities seek price rises to offset rise in carbon costs

Thyssenkrupp, a diversified German company, said its ability to sell its steel division is contingent on making rapid progress in cutting greenhouse gas emissions. Thyssenkrupp is focussing on increasing use of hydrogen and being carbon neutral by 2050 but an anonymous auto industry manufacturer said “we need green steel now”. Bernhard Osburg, the chairman of Thyssenkrupp Steel Europe AG, recently wrote in a letter to employees that “in no other area is time running out more than here.”

German steel producer warns time is “running out” to cut emissions

A German court has ruled in favour of a legal action brought by the town of Waltrop, residents and the German branch of Friends of the Earth (BUND) against a development plan promulgated by North Rhine-Westphalia authorities to allow the construction of the 1100 MW Datteln 4 coal plant. In 2009 BUND won an injunction to block construction of the plant, and another court revoked the construction permit for the project in 2014. Local authorities issued a new zoning plan to bypass these decisions and allow the plant to proceed. The plant was finally commissioned in May 2020, despite a recommendation by the coal commission that it not be brought online. The latest ruling does not mean the plant must shut down but ClientEarth says if Uniper loses a separate legal challenge against the operating permit for the plant, it will have to cease operating. The plant sources most of its coal from Russia and Colombia.

German court rules against Datteln4 coal plant

The German Government has told a parliamentary inquiry that tighter emissions targets required by the recent constitutional court ruling will require energy sector emissions to fall to 108 million tonnes a year in 2030. The previous 2030 target was 175 million tonnes, down from the current 280 million tonnes. The government estimates that in 2030, heating, refineries and other operations will account for 25 million tonnes of the allowable greenhouse gas emissions. Even if renewables generation met the 2030 target of supplying 65 per cent of generation, relying on gas generation alone for the balance would still see the power sector emissions cap exceeded. The government’s statement was in response to questions from the pro-business political party, the FDP.

German Government data reveals no space for coal plants after 2030

The updated climate policy of Intesa Sanpaolo, one of Italy's largest banks, states it will phase out support for coal mining companies by 2025 and immediately end financial support for companies planning or building new coal-fired power plants. However, the bank does not propose ending financial support for companies with existing coal plants. The bank will only exclude support for power utilities which do not have a plan to limit coal generating capacity to a maximum of 35 per cent of their power plant fleet by 2030. Greenpeace and ReCommon criticised the plan as inadequate and falling well short of other major banks.

Italian bank tightens coal lending restrictions but loopholes remain

Germany’s Minister for Economic Affairs, Peter Altmaier, has flagged that with the rise in the European carbon price he expects the phase-out of coal power will occur earlier than the 2038 legislated end date. Despite growing pressure on parties to outline their climate plans ahead of the September general election, Altmaier did not suggest a specific end date. Altmaier is a member of the conservative (CDU) party which is an alliance with the Christian Social Union (CSU) in Bavaria. The Premier of Bavaria, Markus Soder from the CSU, has called for the renegotiation of Germany’s 2038 coal phase-out after the September 2021 federal election. Shortly after Soder’s comments his former rival and CDU Premier of North-Rhine Westphalia, Armin Laschet, backed away from his support for a delayed coal exit. Laschet is the CDU/CSU’s candidate to succeed Angela Merkel as Chancellor.

German Minister says coal end date will be earlier than 2038

Bulgaria’s caretaker cabinet has submitted a plan to the European Commission proposing the closure of the 1602 MW Maritsa East 2 lignite plant by the second quarter of 2025. The National Recovery and Resilience Plan also proposes the termination of two power purchase agreements with two private US companies that operate the 670 MW Maritsa East 1 and the 908 MW Maritsa East 3 plants. The Maritsa complex, with a combined capacity of 3180 MW, is the largest coal plant in south-east Europe. As the plants are all operating well under their rated capacity, the plan proposes replacing them with a 1000 MW gas plant by mid-2025. The state-owned mining company, Mini Maritsa Iztok, is the sole supplier to the plants.

Indications Bulgaria may end coal power in 2025

The Premier of Bavaria, Markus Soder from the conservative political party CSU, has called for the renegotiation of Germany’s 2038 coal phase-out after the September 2021 federal election. Soder, who unsuccessfully sought to be selected as the candidate from the centre-right CDU/CSU coalition to succeed Chancellor Angela Merkel, said coal should be phased out by 2030. While Bavaria is not a coal state, the CDU/CSU’s candidate for Chancellor, Armin Laschet, is currently premier of the major coal producing state of North-Rhine Westphalia and has supported a delayed coal exit. A recent poll of voters suggested just 26 per cent thought Laschet would provide effective climate protection policies.

HUNGARY

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HUNGARY

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© 2023. BLOOMBERG GLOBAL COAL COUNTDOWN.
ALL RIGHTS RESERVED.

© 2023. BLOOMBERG GLOBAL COAL COUNTDOWN.
ALL RIGHTS RESERVED.