The World Coal Association has written to Chris Huhne, the UK Secretary of State for Energy and Climate Change, to urge the UK Government to formalise its commitment to funding CCS demonstration projects in the UK.
Milton Catelin, Chief Executive of the World Coal Association, stated: “Removing the CCS levy and not replacing it with a specific funding scheme for CCS means that CCS demonstration in the UK might have to rely on carbon prices as the only incentive for private investment. However, according to all informed sources, carbon pricing will not provide enough of an incentive for private investment in CCS demonstration plants.”
“We believe that the Government should formalise its commitment to funding the further three CCS demonstration projects by defining the size and the scope of the projected financial support and by setting a timeframe for funding in the forthcoming Energy White Paper,” said Mr Catelin.
Notes
The World Coal Association was originally founded in 1985 and has been working on behalf of the global coal industry for over 25 years. WCA’s Members comprise the world’s major international coal producers and stakeholders. Membership is open to companies and not-for-profit organisations with a stake in the future of coal from anywhere in the world. The WCA provides a voice for coal in international environment and energy forums, presenting the case for coal to key stakeholders worldwide.
For further information, please contact:
Katie Warrick, Director – Communications
kwarrick@worldcoal.org
t: +44 (0) 20 7851 0052
Milton Catelin, Chief Executive, WCA
Over recent weeks, the media has widely reported on the leaked copy of the World Bank’s forthcoming new energy strategy. The main issue at the heart of all this coverage? The future of the Bank’s coal investments.
The draft strategy would put an end to World Bank investments in coal projects in any but the poorest countries. ‘Middle income’ developing countries, like South Africa and India, would no longer be eligible for loans for any coal project, even though access to affordable energy is still a huge challenge in these countries. So in the future, South Africa would not be able to turn to the Bank for support for essential electricity access projects, such as the Medupi coal-fired power station.
We have long argued about the importance of coal as an affordable, accessible source of energy – particularly in many developing countries who often have their own large indigenous sources of coal they can use. Access to energy is one of the essential components of sustainable economic and social development.
This week, the New York Times featured an interesting article “Developing Countries Denounce World Bank Restrictions on Coal Loans” which highlighted the importance of coal for development. This was not the coal industry talking but a World Bank representative.
Below are a few key excerpts from the article and the interview with Rogério Studart, the World Bank executive director for Brazil, seven other Latin American and Caribbean countries and the Philippines.
- “Some countries cannot provide energy access, particularly in Africa, without coal, and the bank knows that. It would be bizarre to say we’re not going to do coal,” Rogério Studart.
- Calling poverty an “international public evil,” Studart called on the World Bank directors to find a different way to fight climate change than imposing restrictions on how countries – or a certain bloc of countries – can rise out of poverty.
- The proposed energy strategy is a “good compromise” on most items, Studart said. But he also argued that in the areas of coal and biofuels…[ ]…the World Bank has imposed wrongful limitations.
- “I am totally in favour of the bank supporting coal because some countries can’t afford the alternatives”. “As a general principle, I think the bank should be able to be as flexible as possible and help the countries produce and develop clean energy,” Rogério Studart.
The ‘Energy Sector Strategy of the World Bank’ is currently being reviewed by the Bank’s Committee on Development Effectiveness and once cleared, will go on the WBG website for another round of feedback.
