World Bank finally moves on from coal

World Bank Coal power stations will be a thing of the past

The World Bank's recent bold decision to stop funding development projects of coal fired power stations has been welcomed by most.  Since President Jim Yong Kim's took the helm, environmental policy has become a key issue for the World Bank. He has commissioned several reports into the dangers of rising temperatures and the impact reaching the critical four degrees celsius mark would have on the poor. While it is now official policy of the World Bank not to fund the construction of any more coal power stations, there is an exception. In circumstances where there is no alternative to coal, a coal power station may be built. The success of this policy will be shown by how many 'exceptions' are granted.

The World Banks movement to become more environmentally friendly in its development projects has been slow. In the past five years the World Bank has spent over $5 billion in coal power stations alone. Though within that same five years, it has doubled financial support to the renewable energy sector. Despite it long being known that coal is the worst form of electricity production for the environment, the World Bank has continued to use it. It has been slow to implement environmentally friendly policies due to the US's historic position of denying the existence of climate change. Though times are changing and there is a big cultural shift within the World Bank to be more conscious about the environment. The last coal fired power station to be built by the World Bank was in South Africa in 2010. There is one in development in Kosovo at the moment, though at the rate they are being constructed, it's not overwhelming. This official policy shift should cement the direction the World Bank is taking, and should hopefully also influence other World Bank development projects to be more carbon conscious.

As always, there have been critics of this policy. It has been argued by Aid Watch that a ban on coal fired power stations will lead to more damning and hydro electricity production. It is important when hydroelectric dams are built that the environment (and people living) downstream are considered. Many livelihoods depend on the flowing of rivers and the produce that comes from them. Yet as with any development project, there are always some costs. Some land and resources must be used in return for development. The World Bank has been keen to promote decentralised electricity production through solar panels and small wind farms. This allows for electricity to reach rural populations and doesn't require large facilities and cable networks. This off grid renewable energy appears to be the best option for supplying electricity to poor households in developing nations, while not causing severe disruption to the environment. 835 people die a year in Kosovo because of exposure to coal pollution, so it too is not a safer alternative to hydro electricity. The future for World Bank electrification projects looks to be in decentralised, local renewable technologies. Let's hope they stick to it!


Sources: 
World Bank to stop funding coal-fired power stations in developing countries - ABC Online
Can Jim Yong Kim end World Bank backing for coal-fired power? - The Guardian