Many countries are stopping funding for coal power plants

Many countries will soon stop funding polluting coal-fired power plants. The agreement is with countries including the United States, Japan and the European Union. This was stated by the Organization for Economic Co-operation and Development (OECD).

Countries have agreed not to act as export credit insurers for the construction of new coal-fired power plants unless certain conditions are met to prevent CO2 emissions. If a project costs too much money or the political situation of a country is unstable, a government can act as an export credit insurer for a company. A company is then insured against the risk that a foreign buyer will not pay.

The appointment comes ahead of the COP26 climate conference in Glasgow in November. The UN Climate Group IPCC said earlier this year that global warming could reach 1.5 degrees Celsius in the next two decades unless drastic measures are taken to control greenhouse gas emissions. The authors of the report concluded that humanity is undeniably responsible for global warming.