France, with the support of the United States, intends to request the halt of private funding for coal-fired power plants during the United Nations climate conference (COP28) taking place later this month, according to three sources familiar with the discussions who spoke to Reuters in India and Europe. This plan, which was sent to India this month, is expected to deepen the divisions at COP28, which will be held in Dubai from November 30 to December 12, as India and China oppose any attempts to hinder the construction of coal power plants, which they consider crucial for their energy-dependent economies.
Indian officials reported that French Minister of State for Development Christola Zacharopoulou informed the Indian government about a plan titled "New Policy to Exclude Coal" for private financial institutions and insurance companies. No plan to stop private funding for coal power plants has been announced previously.
A source familiar with the plan in Europe indicated that the aim is to dry up private funding for coal-fired power plants, and that this issue is among the top priorities for French President Emmanuel Macron at COP28, which is viewed as a critical opportunity to accelerate actions to limit global warming.
The two Indian officials noted that the proposal states that the Organization for Economic Co-operation and Development (OECD) should establish standards for phasing out coal usage for private financial firms, which could be monitored by regulatory bodies, rating agencies, and non-governmental organizations. The United States, the European Union, Canada, and others are seeking to create a plan to expedite the phase-out of coal, which they describe as the "number one threat" to climate goals.
India uses coal to produce about 73 percent of its electricity consumption, despite having increased its non-fossil fuel capacity to 44 percent of its total installed electricity generation capacity.
