Earth Equity News

Industrial Nations Divide on Funding Coal Plants. By Lisa Friedman, Greenwire, August 17, 2010. "In revamping its blueprint for funding energy projects, the World Bank faces some formidable policy questions: how to bring energy to the 1.5 billion people who live in darkness and another 2.5 billion without access to modern energy fuels without underwriting a mammoth increase in greenhouse gases... The question of whether the World Bank should reduce or even end its lending for fossil fuel projects has played out in a spate of high-profile debates over the past two years -- particularly in India and South Africa. Both countries are sites of massive new coal-fired power plants funded either through the bank or its private financing arm, the International Finance Corp. At each turn, the World Bank has come down on the side of supporting coal. At the same time, it has tightened its review process, beefed up loans for renewable energy and reduced the number of major fossil fuel projects coming before the board. Industrialized countries that make up the World Bank's main donors appear divided over how the institution should approach sustainable energy growth. Germany, like the United States, called for 'clear criteria' to ensure that necessary coal plants are as clean as possible, and for the establishment of a 'climate check' to ensure that greenhouse gas emissions and other climate risks are considered in any plan... The Netherlands government went perhaps the furthest, calling for the World Bank to 'phase out investments in gas, oil and coal projects as soon as possible' in favor of more renewable energy investments."