Coal-Power Financing Minimized in World Bank Energy Policy

The World Bank plans to restrict its financing of coal-fired power plants to “rare circumstances,” according to a draft strategy that reflects the lender’s increased focus on mitigating the effects of climate change.

The Washington-based lender will help countries find alternatives to coal, according to the draft obtained by Bloomberg News which lays out the bank’s policy on lending to its member countries. The paper, which is subject to revision, describes universal access to energy as a priority for the World Bank’s mission to help end poverty.

The bank “will cease providing financial support for greenfield coal power generation projects, except in rare circumstances where there are no feasible alternatives available to meet basic energy needs and other sources of financing are absent,” according to the report. Greenfield is a term for a new facility.
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