The World Bank recently announced that it would no longer provide funding for coal plants, except under extraordinary circumstances (basically for very poor countries with no other options). This comes after the announcement last month by the US government that it would no longer be funding coal plants internationally. I’m surprised first that the WB would time their decision so close to the Obama administration’s. That should certainly (and correctly) provide more evidence for the argument that the US essentially runs the bank.
I don’t have any problem if the bank no longer wants to fund coal plants, but what concerns me is that the reason they give. They will instead finance “will focus on scaling up cleaner natural gas and hydroelectric dams in order to deliver electricity to hundreds of millions of people around the world who still don’t have it.” I’m all for reducing carbon emissions and helping the environment, but I wonder if the developing countries see this in the same light.
Amazingly, the new World Bank president, Jim Yong Kim, stated that the “world’s top priority must be to get finance flowing and get prices right on all aspects of energy costs to support low-carbon growth.” I’m surprised that as WB president that is what he thinks the world’s “top priority” is.
He does back off some though when discussing the possibility of funding a coal plant in Kosovo: “Climate change and the coal issue is one thing,” he said in April, “but the humanitarian issue is another, and we cannot turn our backs on the people of Kosovo who face freezing to death if we don’t move in.”