IEA report a missed opportunity for investment in cleaner coal technologies
- The World Coal Association welcomes the publication of the IEAs inaugural Status of Global Energy Investment report. The report highlights that coal investment grew by nearly a quarter in 2015, confirming the role of coal in energy generation.
- Unfortunately, the report fails to substantially address the need for greater investment in HELE coal and CCS technology, both issues highlighted by the IEA’s Energy Technology Perspectives 2016 report.
- HELE coal technology and CCS are vital to the long-term success of the Paris Agreement. To support implementation of the Paris Agreement, the WCA has advocated for an international mechanism to be established to provide financial and other support necessary for countries to accelerate deployment of HELE technologies. The vision of the WCA’s Platform for Accelerating Coal Efficiency (PACE) is to deploy the most efficient power plant technology possible and to encourage international partners (such as development banks and governments) to work together to increase funding for, and the use of HELE technology.
- In many countries, coal is the logical low-cost base-load power choice, particularly in Asia. To assume that fossil fuels will not be required or can be substituted in the next few decades, is likely to lead to cheaper, less efficient coal technology being deployed, threatening the ability to deliver global climate objectives. It is critical therefore, that energy investment is directed toward all forms of low-carbon technology – policy parity for CCS is essential if we are to collectively achieve the best outcomes possible.
- The Intergovernmental Panel on Climate Change (IPCC) has found that without CCUS, climate action could be 138% more expensive and unlikely to meet the 2°C climate target . In the energy sector, strong policy drives strong action but there is an evident need for policy parity to support greater investment. For example, in renewable energy technology growth has been driven by global policy providing $100 billion in subsidies every year, yet just 1% of this is being channelled into CCUS.
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World Coal Association | www.worldcoal.org