Will G7 climate pledge prompt Asian governments to ditch coal or lean more heavily on China?

G7 leaders stopped short of committing to deadlines for phasing out coal but there will be no new funding for coal-fired power plants

An end to coal financing from the G7 could either push Asian nations to consider their coal policies or simply turn to China for funding

4-MIN READ4-MIN

Smoke and steam rise from a coal processing plant in Hejin in central China’s Shanxi Province. Photo: AP

Published: 9:54am, 15 Jun 2021Updated: 10:06am, 15 Jun 2021

The G7 nations failed to go far enough at their weekend summit to halt the use of coal, but a pledge to phase out international funding for new coal power this year could help shift Asia’s policy on the dirty fuel, analysts said.

At a meeting in Britain, leaders of the powerful group of nations said they supported “a green revolution” and committed to stop by the end of 2021 new international funding for coal-fired plants that are not fitted with technology to reduce their planet-warming carbon emissions.

Green groups welcomed the move, which had been expected after it was recently agreed by environment ministers.

But climate campaigners criticised G7 leaders for not signing up to specific targets on ending the use of coal at home, and for offering insufficient new funding to help developing nations shift to renewable energy.

“After decades of rising emissions, just a statement on limiting coal-fired power by G7 [via] direct funding can hardly be seen as going far enough,” said Shobhakar Dhakal, vice-president for academic affairs at the Thailand-based Asian Institute of Technology.

The commitment would have been stronger with a clear timeline for phasing out fossil fuel infrastructure, added Dhakal, a professor in the department of energy, environment and climate change.