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UAE joins Powering Past Coal Alliance

UAE joins Powering Past Coal Alliance

The UAE and Malta have today (5 December) announced that they have joined the Powering Past Coal Alliance (PPCA), committing to transition from unabated coal power generation to clean energy.

It marks a key step for the COP Presidency, which is still facing accusations that it is using the climate summit to boost its oil and gas exports.

For all the size of its oil and gas economy, which makes up 40% of government revenue, the UAE does not have any coal reserves and operates only one coal-fired power station. Indeed, the UAE stopped using coal in power generation in 2022.

Malta is not a major coal player, with no domestic coal extraction. It does import some coal for heavy industry from markets including the EU. Malta phased out coal power in 1996.

Malta and the UAE bring the total number of new PPCA members announced at COP28 up to nine. Other members include the US, the Czech Republic, Cyprus, Dominican Republic, Iceland, Kosovo and Norway. The PPCA now covers 59 countries.

The PPCA argues that the UAE joining the Alliance sends a strong signal for a complete coal phase-out to be included at COP, which its members have also been advocating for.

Dr Sultan Ahmed Al Jaber, COP28 President-Designate, United Arab Emirates said: “Today I am delighted to announce that the United Arab Emirates has joined the Powering Past Coal Alliance. Since COP23, this Alliance has been a leader in driving global momentum to move beyond coal and towards cleaner forms of energy.

“The path to decarbonisation must involve a transition away from unabated coal towards renewable energies. We are clear on the course of action needed and are determined that COP28 provides actionable solutions to enable progress.”

The Alliance is also launching a call to include a commitment in the cover decision of the Global Stocktake to end unabated new coal and phase it out in line with 1.5C. Draft texts of the Global Stocktake emerged at COP28 overnight.

The 12-page document, “welcomes” that the Paris Agreement has “driven near-universal climate action by setting goals and sending signals to the world regarding the urgency of responding to the climate crisis”.

However, the draft text “notes with significant concern” emissions are not in line with modeled global mitigation pathways consistent with the temperature goal of the Paris Agreement. It warns of a “rapidly narrowing window to raise ambition and implement existing commitments” in order to limit warming to 1.5C.

The document is currently light on mentions as to how fossil fuels should be phased-out and also lacks detail on key biodiversity mechanisms such as combatting deforestation and championing nature-based solutions.

 

 


 

 

Source   edie

Philippine bank RCBC to stop lending for new coal-fired power projects

Philippine bank RCBC to stop lending for new coal-fired power projects

 

The Yuchengco Group takes a hard stance against coal power plants, but notes that the shift toward renewable energy will be very challenging.

 

“No more coal, no more coal. I’ll say that slowly: no more coal!”

 

Rizal Commercial Banking Corporation (RCBC) president and chief executive officer Eugene Acevedo made it clear that the Yuchengco-led bank will no longer fund coal energy projects, as the Philippines moves to cleaner energy sources.

Acevedo’s statement comes months after the Department of Energy announced that it will no longer accept new applications for greenfield coal power plants.

However, he noted that coal projects that were funded before will be on their balance sheets “for a while,” and admitted that it would be difficult for the country to rely entirely on renewables.

“It’s not to say that it will be all renewables, because the clouds can come, the waves can stop…to create a robust energy grid, there has to be a combination of renewables plus a few power plants that are rapidly ratcheted up…and those plants are usually gas-fired,” Acevedo said in a forum by the Yuchengco Group on Thursday, December 10.

PetroEnergy Resources president and chief executive officer Milagros Reyes added that while the coronavirus pandemic underscored problems with fossil fuels, particularly price volatility, the shift to green energy will remain challenging.

For instance, Reyes said that while funding for coal will be taken out, it will not necessarily go to wind, solar, or geothermal energy projects.

“It’s going to be mostly natural gas, that’s ‘deplete-able.’ But it’s clean. It’s not like coal. So like what Eugene is saying, they’ll probably be funding a lot of the LNG projects,” she said.

“However, and this is a big however, we do not expect immediate change because the fossil fuel and its products still have a big demand, but the demand will eventually scale down especially here in the Philippines.”

PetroEnergy has interests in oil exploration, geothermal, wind, and solar energy.

Reyes also noted that there are various coal-fired power plants under construction now, which will be up and running by as early as 2022.

Some Philippine banks have started to move away from funding coal projects and have set milestones in sustainable finance.

In the case of RCBC, it issued its first green bonds in 2019 amounting to $290 million or around P15 billion. It also raised P8 billion from its first peso-denominated sustainability bonds, and another $300 million in September 2019.

These bond issuances have funded a total of 9,797 green and social projects amounting to more than P56 billion.

RCBC’s sustainable lending portfolio comprised 10% of total loans as of end-September 2020.

 


 

By Ralf Rivas

Source Rappler