Coal financing increases despite global phase-down pledges

A new study indicates that coal financing remains high despite international pledges made at COP26 to phase down electricity generation. Banks in China, the United States, Indonesia, South Korea, and the United Kingdom are currently providing more funding for coal-fired power operations than they were five years ago when climate commitments were established.

While China has canceled the majority of its planned overseas coal projects following President Xi Jinping’s 2021 pledge to stop funding such plants, experts warn that companies may be using regulatory loopholes to continue investing in overseas coal. The demand for energy security, exacerbated by recent global conflicts, continues to influence the use of coal in regions like Southeast Asia.