OECD deal to curb coal financing has more holes than a sieve

(Friends of the Earth, Paris, 18 November 2015) After nearly two years of discussions, the Organisation of Economic Cooperation and Development member countries have finally reached an agreement on reducing their support to some coal plants through their export credit agencies. The agreement comes a day after the G20 had reiterated its willingness to reduce inefficient fossil fuel subsidies and only 12 days before the start of COP21, the climate change conference. The agreement, which only covers some OECD-member export credit agency financing for coal power plants and leaves out financing for mining, transport and related coal infrastructure, won’t do what is needed to solve the climate crisis. A recent research report notes that G20 members provide $452bn a year in fossil fuel production subsidies – despite pledges to remove them and take action to limit climate change.