7 Public development banks’ role in the early retirement of coal plants 2.2 NEED TO CONSIDER LONG-TERM DECARBONISATION PATHWAYS The pace and scale of retiring coal plants early will vary across countries for a variety of reasons, including the age of the fleet, structure of the grid, growth and shape of electricity demand, readiness to deploy both intermittent and dispatchable renewable energy sou. [...] The ability to invest to realise these benefits is 29 Public development banks’ role in the early retirement of coal plants more closely linked to the business model, balance sheet, and financial health of the utility itself overall rather than the particularities of any individual asset and the assumptions made when that asset was built. [...] 31 Public development banks’ role in the early retirement of coal plants Germany is a member of the Powering Past Coal Alliance and the No New Coal Power Compact and has signed the COP26 Coal to Clean Power Transition Statement, signalling to national financial actors its commitment to transition away from coal. [...] In markets that lack robust government commitment to phase-out, there may be a role for public development banks to engage at the investor level to prevent new coal already in the planning and financing stage and to facilitate legal support to cancel projects in the pipeline. [...] 39 Public development banks’ role in the early retirement of coal plants The success of a reverse auction for coal retirement hinges on the right enabling environment of policies, political support at the national and local levels, and the design of the auction itself (Scott et al., 2022).
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- Published in
- Germany
