What are the major institutional challenges and financial opportunities emerging for new HELE coal power plants? This webinar will examine the trends in coal project finance worldwide and accompanies one of the latest reports published by the IEA Clean Coal Centre.
Publicly funded financial institutions such as multilateral development banks (MDB) and export credit agencies (ECA) based in OECD America and Europe have, since 2013, adopted strict lending rules for greenfield coal power projects. Greenfield projects may be supported financially, but it they will be authorised under rare and exceptional circumstances only. However, these particular financial institutions form a fairly small proportion of the funding made available to coal power projects worldwide. There is evidence that many other banks are willing to support High Efficiency and Low Emission, or HELE, coal technology in Asia, even in the wake of COP21.
In Asia, public funding agencies and commercial banks in Japan, Korea, and China are pursuing coal projects abroad with the view of exporting their own HELE technologies to other regions, even into Europe. This means the impact of reduced funding from western public agencies might not be so severe. Furthermore, the arrival of the newly formed Asian Infrastructure Investment Bank (AIIB) could provide exciting opportunities for funding of cleaner coal technologies in the future.