This isn’t particularly new news but I thought it was worth looking back to given my other blogs of the day. Even though Texas coal-based power generation has experienced a downturn, the same doesn’t hold true elsewhere. In April, the G7 countries announced an agreement that – on its face – seemed to herald the end of coal by 2035. Except that agreement has loopholes as pointed out in Sustainability Times:
“… the G7 countries agreed to phase out the use of unabated coal power during the first half of the 2030s. The term ‘unabated’ refers to coal power that isn’t paired with carbon capture technologies. This distinction is important because it allows countries to continue using coal past the 2035 target, as long as the carbon emissions from the coal are captured before entering the atmosphere. The agreement also permits countries to extend the deadline if their carbon emissions are aligned with keeping global temperatures within a 1.5°C rise above pre-industrial levels.”
With the US being a G7 member, it faces competing priorities in energy: staggering power demand for current and planned AI/data centers, tax policies based on renewable energy/carbon management development and participation in international agreements like this one – especially considering rhetoric from the upcoming administration. The EU is facing its own political upheaval as well potentially impacting those countries’ green policies.
Reports of coal’s death may be greatly exaggerated.
Our members can learn more about climate matters here.
If you aren’t already subscribed to our complimentary ESG blog, sign up here for daily updates delivered right to you.
