Reclaim Finance, with the support of CELIOS, BankTrack, and various CSOs from Southeast Asia, Europe, North America, and Africa, released “Ten Guiding Principles for Financing Coal Retirement Mechanisms.” These principles aim to ensure that the early retirement of coal-fired power plants is aligned with 1.5°C global warming pathways, prioritizes renewable energy, avoids false carbon solutions, secures concessional financing for developing countries, and protects communities affected by coal plant closures. They emphasize the need for government institutions, private financial institutions, and international organizations to move from rhetoric to concrete action.
Some key principles include halting all financing for coal expansion, ensuring that the energy lost through coal plant retirements is replaced with renewable energy, avoiding delays caused by retrofitting, providing grant-based or concessional financing, and ensuring transparency and accountability throughout every coal plant retirement process. The social and environmental impacts of retired projects must also be addressed.
The principles were jointly published by a coalition of organizations, including BankTrack (Netherlands), CELIOS (Indonesia), Oil Change International (USA), Sierra Club (USA), ReCommon (Italy), and several other regional CSOs committed to a just and sustainable coal transition.
Reclaim Finance, supported by CELIOS, BankTrack, and other CSOs across Southeast Asia, Europe, North America, and Africa, released " Ten Guiding Principles for Financing Coal Retirement Mechanisms (CRMs) ". These principles aim to ensure that coal retirement aligns with 1.5°C climate pathways, prioritizes renewable energy, avoids false carbon solutions, secures concessional financing for developing countries, and protects communities affected by early coal plant closures. The call is for governments, private financiers, and international organizations to move beyond rhetoric and take credible action.
Key principles include stopping all financing for coal expansion, ensuring power lost from coal phaseouts is replaced by renewables, avoiding delays due to retrofitting, providing concessional or grant-based financing, and ensuring transparency and accountability throughout CRM processes. Social and environmental harms from retired projects must also be addressed.
The principles were jointly released by a coalition of organizations, including BankTrack (Netherlands), CELIOS (Indonesia), Oil Change International (USA), Sierra Club (USA), ReCommon (Italy), and several other regional CSOs committed to a just and sustainable coal transition.
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