The Organisation for Economic Co-operation and Development (OECD) said that several nations, including the United Kingdom, the European Union, and the United States, have agreed to discontinue giving export credits for coal-fired power stations.
According to the Paris-based organization, the restriction will put a stop to financial backing for new coal power plants that do not have mechanisms in place to capture carbon emissions that contribute to global warming.
“The ban will come into effect once participants complete their formal internal decision-making processes, which are expected by the end of October,” the OECD said.
Meanwhile, the EU said that as a participant in the OECD Arrangement on Officially Supported Export Credits, it plays a significant part in ensuring an international level playing field and achieving consistency in the common goal of combating climate change.
“We are delighted that our proposal at the OECD to put an end to an outdated practice has become a reality. Government support for export credits of coal-fired electricity projects will now be a thing of the past,” Executive Vice-President and Commissioner for Trade Valdis Dombrovskis said in a statement.
“We committed in our new trade strategy to greening trade, and we have shown that we are honoring our pledge. Our effort to beat climate change must reach across all policy areas – trade can and must play an important role,” Dombrovskis added.
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