Secretary-General of the OECD, Angel Gurría, has called for an end to new coal.
In a lecture hosted by the London School of Economics and Aviva Investors in association with ClimateWise last Friday, Mr. Gurria said the most urgent threat to climate policy is new investment in unabated coal-fired electricity generation.
” Between now and 2050, if no further mitigation measures are undertaken, coal generation is projected to emit more than 500 GtCO2,” he stated – 500,000,000,000 tonnes. “That is around half the remaining carbon budget consistent with staying under 2°C.”
Mr. Gurría said new coal investment isn’t just bad for the environment; it’s a very risky investment.
“Governments need to be seriously sceptical about whether new coal provides a good deal for their citizens. If we muster the political will to set ourselves on a 2°C trajectory today, not all coal assets will be able to run for their full economic lifetime. Unsurprisingly, if we delay action, we will have to strand much more capacity overall, as steeper reductions will be required.”
Far from being one of nature’s gifts as Australian Prime Minister Tony Abbott referred to it last year; coal is not cheap due to the damage done by significant land disturbance, water contamination, air pollution, damage to ecosystems, and dust and noise pollution. For example, the cost of the health impact of air pollution from energy use in China was about USD 1.4 trillion in 2010.
“We have to move to the point where claiming that coal is cheaper or that it is the “only” solution is no longer good enough. Political and business leaders who make this claim have to be able to substantiate it against the alternatives.”
Alternatives now cost competitive with coal (depending on the region) include onshore wind, biomass, hydro, geothermal and solar power systems.
Since 2000, 60% of total power plant investments have been in low-carbon technologies. Even so, between 1990 and 2013, coal burnt for electricity generation doubled.
Mr. Gurría warned against a lackadaisical approach to COP 21; the 2015 Paris Climate Conference.
“There is little time left. Governments cannot afford to treat this year’s COP like just another round of an endless trade negotiations – The carbon clock is ticking!”
A recently published report from the OECD states coal is usually the least heavily taxed of all fossil fuels and subject to very low or no import tariffs; whereas import tariffs of 10-20% or more are often applied to renewables.
Mr. Gurría’s full speech can be read here.
