View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. Policy
29 September 2021updated 10 Nov 2021 7:35am

Countries with worst electricity access get disproportionate coal finance

Coal investments are concentrated in a small group of countries struggling with electricity access and risk hindering their energy transition, says not-for-profit Sustainable Energy for All.

By Energy Monitor Staff

International coal financing is largely channelled to a small group of countries with the world’s highest absolute gaps in access to electricity, says a study from not-for-profit Sustainable Energy for All (SEforALL). It suggests renewable energy financing unfairly favours the West.

Day labourers unload coal from a cargo ship in Gabtoli, Dhaka, the capital of Bangladesh, in February 2021. (Photo by Ahmed Salahuddin/Nur via Getty Images)

As of 2021, new coal-fired power plants are under active development in eight out of 18 countries with big gaps in electricity access: Bangladesh, India, Madagascar, Malawi, Mozambique, Niger, Pakistan and Tanzania.

Across all 18 countries, financial commitments worth $54bn were channelled towards coal projects between 2013 and 2019. Of this, the biggest chunk – $19bn – came from international public finance.

Conversely, international public finance only made up $23bn out of $103bn channelled towards renewables, less than half the value of financial flows from private domestic finance.

Financial institutions based in China account for 40% of the $42bn committed to finance 12.7GW of coal-fired power plants in India, Pakistan, Bangladesh, Kenya and Malawi.

Privately held institutions based in the US account for 58% of all investment in the coal industry.

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Keep up with the global energy transition with one of our editors bringing you the best of our data-led news and analysis every Monday and Thursday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU