This follows after Honduras joined the Powering Past Coal Alliance, which is dedicated to phasing out coal
Latin America will now not have any new coal projects coming up. This development comes after Brazil and Honduras scrapped their plans of opening two new coal plants this year, according to a report by Global Energy Monitor.
Last week, Honduras announced that it was joining the Powering Past Coal Alliance (PPCA), a coalition of governments and others committed to transitioning away from coal, signalling an intent to not invest in coal anymore.
In other words, the country’s last coal plant proposal — the 0.1 GW Puente Alto Energy power station — will be shelved. According to GEM, there hasn’t been any development at Brazil’s last active coal plant proposal — the 0.6 GW Pedra Altas power station — since the licensing work completed in 2023. This can also be considered as shelved.
GEM’s data points that the scrapping of these two coal plants means that there has been an overall collapse of 18 plants totaling 7.3 GW of capacity proposed in 2015.
More importantly, Latin America now seems to follow UN secretary-general Antonio Guterres’s 2019 call for “no new coal,” which calls for the cancelling of all unabated coal proposals not already under construction.
All eyes on Brazil
Even though Brazil hasn’t proposed any new coal plants, it also hasn’t joined the PPCA, therefore its stance on this matter is still hanging in the balance. If it does join the PPCA, it would be a clear-cut signal that it will not build any new coal plants.
According to GEM’s report, another worrying phenomenon is that the coal-generated power in Brazil is heavily subsidised. Just two coal plants received over R$5 billion (Brazilian real) between 2020 to 2024, and these costs are ultimately borne by the Brazilian people.
GEM’s report also found that there are also no new coal plants proposed in Brazil’s national energy auctions this year, with a decrease in coal power generation projected through 2034 in the country’s most recent 10-year energy plan.
“It is crucial for Brazil to formally join the PPCA, especially amid intense pressure from Congress advocating for coal and gas subsidies to be extended until 2050. As this year’s COP host, we cannot miss the opportunity to officially commit to no new coal,” said Juliano Bueno de Araujo, presiding director at Arayara.
Latin America following Paris Agreement guidelines
According to the report, the Latin America region is close to achieving the 1.5°C target of the Paris Climate Agreement, if it stays on course. Meeting the Agreement goals requires phasing out unabated coal power globally by 2040, following the IEA’s Net Zero scenario.
If one looks at planned retirements and phaseout commitments, over 60% or 10 GW of the region’s 16.3 GW of operating coal power capacity is scheduled to come offline by 2040, found the report.
The only anomaly is Argentina’s Río Turbio power station, the report noted. The lone coal plant is still under construction. The project is not only long-delayed, but also faces technical difficulties, cost overruns, and allegations of corruption, according to the report.
“Honduras is signaling a decisive shift away from coal. The country is an example for others in Latin America that a coal-free future is possible. The baton is now being passed to Brazil. Brazil is in a prime position to lead the charge in the global coal-to-clean energy transition – and help keep the Paris Climate Agreement on track,” said Christine Shearer, project manager at Global Energy Monitor.
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