Mounting evidence from across the globe shows that coal has had its day. The most polluting fossil fuel is not only bad for the climate and public health, but is also becoming financially unviable as renewable energy prices plummet. And yet, together with oil, it still dominates the world’s energy mix. Coal still plays a major role in energy production and remains a major energy source in many Asian countries like China, India and Indonesia, as well as many other parts of the world.
Now, a range of financial institutions in Asia and beyond are looking to buy out coal assets to hasten its phase-out. But experts still question whether the idea has what it takes to catalyse a deep and just energy transition.
Running out of time to phase out coal
In the latest report by the UN Intergovernmental Panel on Climate Change (IPCC), scientists made it clear once again that a deep decarbonisation of the world’s economy is essential to avoid the worst consequences of global warming. But markets alone do not seem to be able to displace coal fast enough.
“There is a general narrative that the transition beyond coal is inevitable, and that it’s only a matter of time,” says Justin Guay, director of global climate strategy at the Sunrise Project, a social enterprise. “But that’s only partially true.” Building new clean energy infrastructure is already cheaper than operating any old coal-fired power plant, he adds, so at least on paper there should be virtually no hurdles to a fast energy transition from fossil fuels.
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