The model of taking coal plants offline in exchange for renewable energy finance is growing in popularity with a concessional funding version underway in Chile. But experts are concerned the incentives could be unnecessary and may even encourage some plants to stay online
Market dynamics should see the end of coal without additional funding to retire the plants
SIMPLE IDEA One of the easiest ways to eliminate coal from energy systems could be to offer plant owners a financial incentive to switch to renewables
DOUBLE TROUBLE Detractors worry such incentives are not needed because renewables are forcing coal plants offline anyway—and the prospect of handouts might entice some plant owners to delay closures
KEY QUOTE Why am I bailing out a shareholder who has made an investment and had a return? ...
Try FORESIGHT - 30 days for €29
Two antipodean countries, two different approaches to the low-carbon transition. While New Zealand is starting to lead from the top-down, Australia still lacks clear national policies with a patchwork of approaches to decarbonisation remaining the order of the day
Coal-reliant regions around the world have been generally resistant to the energy transition and regulators have tended to defend the status quo. But they are slowly starting to realise that clear plans and financial support for disrupted societies are more important
COVID-19 may have reduced emissions in the short-term, but much more needs to happen to slash fossil fuel use to meet climate targets
A finance mechanism that retires coal power stations and replaces them with new renewable energy capacity is gathering steam in the United States. But challenges remain in making this seemingly simple solution mainstream
Peter Wooders, group director for energy at the International Institute for Sustainable Development (IISD), explains why he is convinced that subsidy swaps are the best way to finance the clean energy transition