United States and World Bank will not support overseas coal projects and will not finance them anymore, in support to curb global carbon emission.
US stepped ahead to end financing coal projects overseas and as the US holds most voting power in World Bank. They will not support any upcoming power projects to limit global carbon emission which is majorly responsible for the climate changes and so no finance available for Coal projects.
As per the US Treasury Department, they will end support for coal plants by the World Bank and other international development institutions unless the projects involve new carbon-capture measures or if there is no other economically feasible option in one of the world’s poorest countries.
The major economies accounting for almost half of global coal consumption are the countries like China, India etc. Last year it was estimated by the World Resources Institute that 76% of proposed new coal power would be in China and India, which are not dependent on foreign aid.
It is estimated that mostly new coal-fired plants had been proposed in 10 nations that produce little coal at home including Cambodia, Guatemala, Laos, Senegal and Sri Lanka.
China, a growing financer, is major investor in coal projects than Western nations and multilateral banks.
US is encouraging other nations to go against coal projects and it noted that during visit to Stockholm last month, Obama agreed with the leaders of Denmark, Finland, Iceland, Norway and Sweden that none of the countries would fund coal projects.
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