projects. The Norway Sovereign Fund began to
disinvest in coal companies in June 2015. Scotland shut down its last coal-fired power plant in
March 2016. England, Finland, Portugal and
Austria plan to phase out coal-fired power plants
by 2025, 2029, 2030 and 2025 respectively. In
addition, EU countries plan to cancel coal-related
subsidies by 2018. Austria, England, Belgium
and Finland have all taken power industry
decarbonisation measures.
All OECD member states strictly control
subsidies for coal-fired power plants. Thirty-four
OECD member states reached agreement in
November 2015 to restrict export credits for
coal-fired power plants using older technology,
granting allowances only to “coal-fired power
plants that meet the strictest environmental
standards”, and tightening financial support for
the coal industry.
The USA, Canada and other countries have
gradually weakened policies supporting the coal
industry. The USA began to restrict the export of
coal technologies before the OECD. Major banks
in the USA have cancelled financial support for
coal projects, as have the Export-Import Bank of
the United States, the World Bank and the
European Investment Bank. Canada backed carbon capture and sequestration technologies for
coal-fired power plants in August 2011. It is
possible that it will completely phase out
coal-fired power plants by 2050. Many regions in
Canada have introduced decarbonisation measures for the power industry.
Many countries levy resource taxes. Denmark,
Finland, Sweden and Norway are pioneers in
these taxes. In Canada, the Alberta government
began to levy CAD 20 ($15) on every tonne of
carbon emitted from January 1, 2017. France
started to levy a carbon tax on coal power in
2017.
In summary, the policies for exiting coal can
be divided into two categories: (i) restrictive
policies on the supply side to reduce coal production; and (ii) policies on the user side that set
targets for the transition to new energy as a
means to reduce coal demand.
6.1.2 The Strategic Positioning of Coal
Differs from Country
to Country
Many countries are heavily dependent on coal.
For example, in Germany, coal accounts for
more than 20% of the energy mix and coal-fired
power for more than 40% of the power mix. In
South Korea, the figures are around 30% and
almost 40% respectively; and in India, they are
higher—about 50% and 60% respectively. China
is one of a minority of coal-based countries. Coal
accounts for around 63% of China’s energy mix,
and coal-fired power for more than 70% of its
power mix. A few countries may become more
dependent on coal, instead of less. Japan is an
example. Coal accounts for about 25% now, in
both its energy mix and power mix. By 2030, the
share of coal in its energy mix and power mix is
likely to increase to 30% and 26% respectively.
To ensure energy supply security, some
countries increase their use of coal. For example,
Japan made a new energy plan after the
Fukushima nuclear accident, which involves
building 41 coal-fired power plants over the next
decade to ensure energy security. To meet
increasing energy demand and improve economic development, India plans to increase coal
output year by year, and has introduced support
policies on the environment, land approval and
on granting exploitation rights to private capital.
The positioning of the coal industry differs
from country to country. Most countries are
actively reducing emissions from coal combustion and optimising their energy and power mix
in many ways. But their attitudes on whether to
exit or continue to use coal are different, mainly
influenced by their resource endowment, industrial structure and phase of development. Significantly decreasing coal’s share of the energy
mix is impossible for many countries in the short
and medium terms. For example, in Germany
and the USA, the coal-exiting policy has been
ignored by coal and other traditional industries.
Japan has increased its coal power to ensure
energy security. In keeping with its phase of
development, India’s coal consumption is
474
S. Yaodong and A. Gillespie
disinvest in coal companies in June 2015. Scotland shut down its last coal-fired power plant in
March 2016. England, Finland, Portugal and
Austria plan to phase out coal-fired power plants
by 2025, 2029, 2030 and 2025 respectively. In
addition, EU countries plan to cancel coal-related
subsidies by 2018. Austria, England, Belgium
and Finland have all taken power industry
decarbonisation measures.
All OECD member states strictly control
subsidies for coal-fired power plants. Thirty-four
OECD member states reached agreement in
November 2015 to restrict export credits for
coal-fired power plants using older technology,
granting allowances only to “coal-fired power
plants that meet the strictest environmental
standards”, and tightening financial support for
the coal industry.
The USA, Canada and other countries have
gradually weakened policies supporting the coal
industry. The USA began to restrict the export of
coal technologies before the OECD. Major banks
in the USA have cancelled financial support for
coal projects, as have the Export-Import Bank of
the United States, the World Bank and the
European Investment Bank. Canada backed carbon capture and sequestration technologies for
coal-fired power plants in August 2011. It is
possible that it will completely phase out
coal-fired power plants by 2050. Many regions in
Canada have introduced decarbonisation measures for the power industry.
Many countries levy resource taxes. Denmark,
Finland, Sweden and Norway are pioneers in
these taxes. In Canada, the Alberta government
began to levy CAD 20 ($15) on every tonne of
carbon emitted from January 1, 2017. France
started to levy a carbon tax on coal power in
2017.
In summary, the policies for exiting coal can
be divided into two categories: (i) restrictive
policies on the supply side to reduce coal production; and (ii) policies on the user side that set
targets for the transition to new energy as a
means to reduce coal demand.
6.1.2 The Strategic Positioning of Coal
Differs from Country
to Country
Many countries are heavily dependent on coal.
For example, in Germany, coal accounts for
more than 20% of the energy mix and coal-fired
power for more than 40% of the power mix. In
South Korea, the figures are around 30% and
almost 40% respectively; and in India, they are
higher—about 50% and 60% respectively. China
is one of a minority of coal-based countries. Coal
accounts for around 63% of China’s energy mix,
and coal-fired power for more than 70% of its
power mix. A few countries may become more
dependent on coal, instead of less. Japan is an
example. Coal accounts for about 25% now, in
both its energy mix and power mix. By 2030, the
share of coal in its energy mix and power mix is
likely to increase to 30% and 26% respectively.
To ensure energy supply security, some
countries increase their use of coal. For example,
Japan made a new energy plan after the
Fukushima nuclear accident, which involves
building 41 coal-fired power plants over the next
decade to ensure energy security. To meet
increasing energy demand and improve economic development, India plans to increase coal
output year by year, and has introduced support
policies on the environment, land approval and
on granting exploitation rights to private capital.
The positioning of the coal industry differs
from country to country. Most countries are
actively reducing emissions from coal combustion and optimising their energy and power mix
in many ways. But their attitudes on whether to
exit or continue to use coal are different, mainly
influenced by their resource endowment, industrial structure and phase of development. Significantly decreasing coal’s share of the energy
mix is impossible for many countries in the short
and medium terms. For example, in Germany
and the USA, the coal-exiting policy has been
ignored by coal and other traditional industries.
Japan has increased its coal power to ensure
energy security. In keeping with its phase of
development, India’s coal consumption is
474
S. Yaodong and A. Gillespie