Australia pledges to not open new coal plants at COP29

It is part of 25 countries and the EU which launched the ‘Call to Action to No New Coal’ campaign at the ongoing COP29

For the first time, Australia has pledged to not build new coal powered plants. This promising development comes on the heels of 25 countries and the EU launching the ‘Call to Action to No New Coal’ campaign at the ongoing COP 29 in Baku, Azerbaijan.

Essentially, these countries and the EU plan to update their NDCs which won’t include new coal. Even while most of these countries have already either phased out coal, or have committed to do so, this particular pledge calls upon all countries to phase out coal. The pledge wants that ‘no coal’ should reflect in the updated NDCs of all countries before the next COP30 in Brazil.

Phasing out coal is a critical necessity if the world wants to maintain the 1.5C pathway. And the first action towards that is stopping all construction of new coal plants. This shows that there’s a willingness to come up with domestic policies to reach the first global stocktake under the Paris Agreement.

On a coal free path

Being the second largest exporter of coal in the world after Indonesia, the fact that Australia has said no to new coal plants is very important. 

For India, this can pose a challenge, as India imported more than 50 million tonnes of coal from Australia in 2023, according to Kpler. 80% the Australian coal imports were metallurgical coal used for heavy industrial processes, while the remaining 20% was thermal coal used in coal power plants to produce electricity. 

“The commitment to ‘transition away from fossil fuels’ needs to turn into real steps on the ground. A large majority of countries have already turned their backs on coal power, opting for affordable, reliable, clean energy instead, but globally coal power is still growing. This ought to change. New coal power is one of the biggest threats to keeping 1.5°C within reach. The EU is pleased to support, throughout the next year leading to COP30, a diverse coalition of countries fully committed to anchor an end of new coal power in their upcoming NDCs,” said Wopke Hoekstra, the European Commissioner for Climate Action.

A call for just transition

Coal capacity rose by 2% last year, despite the Intergovernmental Panel on Climate Change clearly outlining that new, unabated coal cannot exist if the world wants to align to a 1.5°C or even 2°C aligned pathway. 

But achieving a coal phase out would leave some communities and workers in a tight spot who are dependent on the coal economy for their livelihoods. Here arises a case of just transition, which needs to reflect in countries’ climate plans. This can be achieved through effective social dialogue and stakeholder engagement.

Powering Past Coal Alliance helped in developing the Call to Action. 24 of the endorsing countries are members of the PPCA. Some investors and business organisations who support this are RE100, the Global Renewables Alliance, Ceres, Asia Investor Group on Climate Change (AIGCC) and Investor Group on Climate Change (IGCC).

“We strongly support this call to action, recognising the imperative need to transition from coal to renewables for environmental, economic and social reasons. New unabated coal power plants fly in the face of logic and all governments must commit to no new unabated coal power plants. New coal plants lock in investment in projects that will turn into stranded assets, while countries risk missing out on significant corporate investment in the renewables they need to stay competitive,” said Ollie Wilson, head of RE100.

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