From Politico:
U.S., JAPAN STRIKE DEAL TO CURB COAL FINANCING: The U.S. and Japan appear to have struck a deal to reduce the amount of financing available to poorer countries to build coal-fueled power plants, according to documents obtained by ME. Under the plan, there would be no financing for the oldest, least efficient — but also the cheapest — coal plant technology, and only impoverished countries would have access to credit for a middle-tier of technology. Money would be available for ultra-supercritical coal plant technology, which is among the most efficient.
As Pros know, Japan is a major financier of coal power plant technology overseas, in an effort to support export of its efficient coal plant designs and equipment. It has long been an obstacle to the effort by the Obama administration and environmental groups to cut funding for coal projects in an effort to combat climate change.
The deal will form a key part of a proposal to the Organization of Economic Cooperation and Development, which is meeting in Paris next week. “This is not everything that we hoped for. That’s a fact of life,” Nicole Ghio, senior campaign representative with Sierra Club International Program, told ME. “It’s the first time I’ve seen restrictions on what can be built in the world’s poorest countries. That’s very exciting.”
South Korea and Australia on their own: South Korea and Australia have each put forward their own proposals, neither of which is as restrictive as the U.S.-Japan plan, according to additional documents obtained by ME. South Korea’s proposal would allow financing of the older, subcritical technology to less rich nations, while Australia’s proposal would largely stop financing of only the oldest technology, but allow financing of the middle tier of coal burning technology. “Instead of joining that [US-Japan] proposal, they’re going out on their own,” Ghio said.
See ya, Hector.
