Gland, Switzerland – The World Bank’s decision, announced yesterday, to limit funding to coal power plants to “only rare circumstances” is a welcome step towards a sustainable energy future, and other finance institutions should immediately follow suit, says WWF.
International public finance institutions, such as the World Bank, the Asia Development Bank, the European Bank for Reconstruction and Development or the African Development Bank, have an opportunity to shape the world’s shift to sustainable energy sources.
“Coal is the dirtiest of fossil fuel power sources – polluting local environments, and contributing heavily to global warming. The move by the World Bank to limit new coal financing is welcome, and this should immediately become the norm for all international finance institutions,” said Samantha Smith, leader of the WWF’s Global Climate & Energy Initiative.
“But to have a serious chance of tackling climate change, the world needs to move away from fossil fuels completely. While helping developing countries expand energy access and transition to low-carbon economic growth, the World Bank should phase out its support for all power supply based on fossil fuels, consistent with the Bank’s ambition of encouraging action on climate change,” says Smith.
WWF’s new global campaign, Seize Your Power, calls on financial institutions to significantly increase their funding of renewable energy and cut funding to fossil fuels because we recognise that the level of CO2 emissions in the world requires drastic action to limit global warming.