2 Minutes Read (Reuters) – LONDON, June 30 (Reuters) – According to the Carbon Tracker group, five Asian countries are responsible for 80% of new coal power plants planned around the world, with the majority proving uneconomical and putting international climate objectives out of reach. More than 600 new coal-fired power plants are planned in China, India, Indonesia, Japan, and Vietnam, with a total capacity of more than 300 gigawatts. With governments under pressure to decrease carbon emissions and keep global average temperature rise below two degrees Celsius this century, coal consumption has declined in Europe, the United States, and elsewhere. Coal is no longer financed by many investors. However, several growing economies claim that they still require the fuel. According to an analysis by Carbon Tracker, an independent financial think tank that studies the world’s transition to cleaner energy, 92 percent of planned coal projects in the five Asian countries would be uneconomical, wasting up to $150 billion. “Investors should avoid new coal projects since many of them are expected to generate negative returns from the start,” said Catharina Hillenbrand Von Der Neyen, Carbon Tracker’s head of power and utilities. Almost three-quarters of the world’s coal-fired power facilities are now operated by five Asian countries. China is home to more than half of the world’s flora. According to Carbon Tracker, 27 percent of existing capacity is unprofitable, while another 30 percent is barely breaking even. Existing coal plants might be left stranded for $220 billion if Paris climate targets are met, according to the report. Renewable energy sources will be cheaper than coal in every major region by 2024, according to the analysis, and by 2026, nearly all global coal capacity would be more expensive to build and operate than renewable energy generation. Renewable energy sources are undercutting new and current coal-fired power facilities, according to the International Renewable Energy Agency. Nina Chestney contributed reporting, and Edmund Blair edited the piece. Continue reading
