Coal
Coal
is one of the most abundant and environmentally harmful fossil fuels
that is used to generate electricity. The European Union produced 13%
of its electricity from coal in 2009 and about 40% of the global
electricity production is generated from coal.
If
current energy production trends carry on, we can expect the world's
coal consumption to grow by 48% by 2030.
Coal
is considered to be an infinite resource and is expected to last for
many years to come (compared to oil), but with the ever increasing
consumption and hunger for energy, the global coal reserves will
reach peak point too.
Interactve map of coal in Europe
Coal
In Europe
The
European Union recognized the urgent need to de-carbonize its energy
sector and to lay down the foundations of a low carbon economy. To
achieve the full de-carbonization of the energy sector in Europe we
must move away from using coal and shift towards energy efficiency
and renewable energy resources.
Unfortunately,
this is not what's happening on the ground. In 2008, more than 70
new coal-fired power stations were proposed in Europe, with a shared
capacity of (approximately) 70GW. This would add up to 10% of
Europe's electricity capacity.
Financing
coal
Europe
has significant reserves of coal and lignite
and a number of EU member states are major players in the coal
industry, such as Poland, the UK and Germany. European investors and
private banks see coal as a great opportunity to make quick
financial gains, following the 2008 collapse of the global economy.
Major european banks are investing in
coal-fired power stations in Germany, Poland, and Italy. Commercial
banks that invest in coal-fired power stations misconceive the
ambition of the European community to tackle climate change.
Banks
in Europe carry a huge responsibility in setting obstacles in the way
for the European Union to become a champion around the table of
international climate change negotiations.
Risks
Banks
set the risk of investing in coal too low due to abundant reserves,
tested mining technologies and mechanisms, existing delivery and
utilization infrastructure. However,
the risks are sky-high and the price of coal carries much
uncertainties.
Coal-fired
power stations are major contributors to the anthropogenic climate
change. This carbon heavy electricity production practice also causes
environmental devastation from the mining practices and from the
emission of greenhouse gases. Coal-fired power plants also generate
waste material such as acid rain, fly ash, bottom ash, flue gas
de-sulfurization sludge (contains mercury, uranium, thorium, arsenic,
and other heavy metals), therefore such developments directly impact
our health.
The
cost of the damages caused by coal-fired power stations is
externalized and carried by the communities, governments and the
taxpayers. Banks that are financing coal-fired power stations must
take these risks into account and conduct detailed and realistic
Environmental Impact Assessments (EIA) accordingly. Realizing and
internalizing the true cost of coal will depict a different picture
for private investors.
Private
investors must also recognize that financial investments in new
coal-fired power plants is inconsistent with the EU climate policy
agreed in Cancún at the UN`s 16th climate change conference. Moreover, new national regulatory frameworks are under way in several european countries that will drastically block coal expansion on the continent. With more and more opposition to coal from
civil society and the European policy agenda, commercial banks now
must step away from further financing of coal-fired power plants.
What
should happen
Instead
of the emission heavy, climate destructive, health impacting
coal-fired power stations,
investment trends need to turn towards utilizing Europe's potential
to develop its energy efficiency and renewable energy resources. The
financial sector, particularly the European private banks have an
obligation to serve their customers, and the wider community by
refusing to finance newly proposed coal-fired power stations and the
coal industry.
Coal
Financing Campaign around Europe
Our
network of NGOs challenge the investments
of the private banks in new coal power plants in Europe. We push to
promote sustainable energy security and a low carbon economy for
Europe. We urge the banks to take initiative and move forward on the
investment frontier and join ethical investors who have already said
no to coal!
For more information on banks and coal outside Europe, you can read the page "Banks and Coal".
