Q&A: Why defining the ‘phase-out’ of ‘unabated’ fossil fuels is so important at COP28
With the COP28 climate conference negotiating possible text on a fossil fuel phase-out, there is a need to define terms such as “unabated fossil fuels” and underpin definitions with a solid understanding of the science behind the need for a fossil-fuel phase-out, write Molly Lempriere and Simon Evans in Carbon Brief.
How Colombia’s dirty coal fuels German coal plants
At El Cerrejon, Latin America’s largest open-pit coal mine, reports of human rights abuses and environmental destruction are piling up, writes Oliver Pieper in Deutsche Welle.
‘Our lands and forests have been cruelly snatched away.’ Adani’s Pelma coal projects.
In the Raigarh district of central India, a cluster of coal projects has left much of the local population destitute. Four of the area’s existing and proposed coal mines are either owned by or contracted out to the Adani Group, writes Ayaskant Das in Adani Watch.
West Virginians could get stuck cleaning up the coal industry’s messes
West Virginia’s fund to clean up abandoned coal mines is in such dire shape that it threatens to stick taxpayers with hundreds of millions — perhaps even billions — of dollars in cleanup costs, writes Ken Ward Jr in Mountain State Spotlight.
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Pressure for fossil fuel phase-out language in COP28 text: The President of COP28, Sultan Al Jaber, is under pressure to address calls by more than 100 countries to support a phase-out of fossil fuels in the final COP28 agreement. During a 21 November online event by Mary Robinson, the chair of the Elders group and former Irish President, Al Jaber – who is also the chief executive of the United Arab Emirates’ state oil company, Adnoc – dismissed Robinson’s call for a fossil fuel phase-out. At the start of the conference, a coalition of 15 countries led by the UK and Canada urged Al Jaber to seek agreement to end new unabated coal-fired power generation and accelerate its phase-out. The US and six other countries – including the Czech Republic – joined the Powering Past Coal Alliance at the conference. A coalition of 125 countries also backed an International Energy Agency proposal to triple global renewable energy capacity and double the annual rate of energy efficiency improvements by 2030. (Guardian, Inside Climate News, Powering Past Coal Alliance, Euractiv)
Japan won’t build coal plants it has no plans for: Japanese Prime Minister Fumio Kishida told the COP28 conference in the United Arab Emirates that Japan “will end new construction of domestic unabated coal power plants”. Japan currently has one new 650 megawatts (MW) coal unit under construction, but the Ministry of Foreign Affairs stated the pledge did not apply to this project. No other new coal projects have been permitted. Japan has 93 operating coal plants with a combined capacity of more than 54,000 MW, with the government’s primary strategy to reduce emissions being increased co-firing with biomass, ammonia and hydrogen. Kimiko Hirata from the Japanese think tank Climate Integrate described Kishida’s statement as “greenwashing”. In Southeast Asia, Japan is promoting the co-firing of coal with ammonia through its Asia Zero Emission Community. Leo Roberts from E3G, a UK-based NGO, said Japan’s strategy is “not about ultimately reducing emissions, (it’s) about finding backdoor ways of prolonging the lifetime of fossil fuel infrastructure”. (Reuters, Barron’s)
Cambodia cans plan for coal plant in national park: Cambodia’s Minister for Energy, Keo Rottanak, has announced the cancellation of the Royal Group’s proposed US$1.5 billion 700 MW Botum Sakor coal plant. Instead, the plant will be replaced by an 800 MW LNG-fired plant to be commissioned after 2030. The original plan was for the plant to be built by Sinosteel of China, financed by Chinese financial institutions and run on imported coal. The government excised 168 hectares from Botum Sakor National Park for the plant and allocated a further 100 square kilometres of the park for the company to build a special economic zone. No environmental impact statement on the project has ever been made public. Botum Sakor National Park has been cut to 15 per cent of its original size due to a series of land allocations by the government. (Reuters, Global Energy Monitor)
Former US energy regulator charged over role in Ohio bailout scandal: A federal grand jury has indicted the former chairman of the Public Utilities Commission of Ohio (PUCO), Sam Randazzo, on 11 counts of alleged bribery and embezzlement. Randazzo has pleaded not guilty. Randazzo was appointed PUCO chairman by Republic Governor Mike De Wine and served from April 2019 until November 2020, resigning after the Federal Bureau of Investigations searched his house. The indictment alleges Randazzo received US$4.3 million in bribes from “an energy company” that used its “political connections” to lobby for Randazzo’s appointment to PUCO. The indictment alleges that in November 2019, Randazzo intervened in the PUCO decision to ensure a favourable financial outcome for the utility. While the company is not named in the indictment, in separate legal proceedings, FirstEnergy admitted paying Randazzo. The indictment follows earlier convictions of three participants in FirstEnergy’s campaign to win legislative support for the bailout of two nuclear and two coal plants. Subsidies for the nuclear plants have been revoked but remain for the two coal plants: Ohio Valley Electric Corporation’s Kyger Creek plant in Ohio and the Clifty Creek plant in Indiana. (Cleveland.com, US Department of Justice, US District Court [Pdf], Energy and Policy Institute)
Welsh mine finally closes, over a year after planning permission expired: The Ffos-y-fran mine in South Wales has finally closed, 15 months after planning permission for the project expired in September 2022. Merthyr (South Wales) Pty Ltd has produced over 500,000 tonnes of coal since the expiry of its planning permit, but slow regulatory enforcement allowed the company to continue operating until November 30. The mine was approved in 2007 as a “land reclamation scheme” to allow coal mining to generate funds to rehabilitate the abandoned mine site. However, the company acknowledges the bond held is far less than the estimated cost of rehabilitation of between £120 million (US$151 million) and £175 million (US$220 million). In an October 20 letter to Merthyr Tydfil County Borough Council, the Chief Executive of the Coal Authority, Lisa Pinney, warned that the lack of an agreed restoration plan and rising water levels meant “a clear risk to public safety and to the environment”. Another document obtained under Right to Information laws warned Welsh First Minister Mark Drakeford that “officials consider the company is likely to seek administration” after mining ceases. (BBC, Coal Action Network)
New Polish government likely in mid-December: A new Polish government is expected to be finalised by December 12 after the anticipated defeat of a motion of confidence in the Law and Justice (PiS) leader, Prime Minister Mateusz Morawiecki. President Andrzej Duda swore Morawiecki in as Prime Minister after PiS won the largest number of seats at the October 15 election. Donald Tusk, the leader of Civic Coalition (KO) who is likely to be sworn in as the next Prime Minister, has unilaterally proposed a new energy bill which would ease restrictions on further onshore wind farms proximity to residential areas and national parks, ban the use of coal for home heating after 2030, freeze domestic power prices for the first half of 2024 and back PiS plans for new US and South Korean nuclear power plants. While Tusk’s coalition partners support a rapid shift away from coal power, his proposal is likely to be modified due to concerns of coalition parties. (Financial Times, Politico Pro)
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Canada: The government of Saskatchewan has provided C$500,000 (US$405,000) to the town of Coronach and the municipality of Hart Butte to support Videre Energy’s plans to develop new lignite-based products.
Japan: JERA, a joint venture between TEPCO and Chubu Electric Power, will trial co-firing up to 20 per cent ammonia in a coal unit at its 4100 MW Hekinan coal plant.
Poland: Four miners died when a water pipe burst in the Sobieski underground mine owned by Tauron.
South Africa: Exxaro Resources said coal shipments from Richards Bay Coal Terminal, which it is a part owner of, are on track to reach 47.4 million tonnes this year, the lowest level in over 30 years.
Sweden: The public pension fund, AP7, has added Shanghai Electric Power and Datang International Power Generation to its blacklist of companies it won’t invest in due to their significant coal interests.
Vietnam: AES Corporation has agreed to sell its 51 per cent stake in the 1242 MW Mong Duong 2 coal plant in Vietnam to Se.ven Global Investments.
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Russian company’s Arctic coal mine plan stalls: US sanctions may have stalled the development of the Syradasayskoye coal mine on the Taymyr Peninsula, one of the projects planned to underpin the development of Russia’s Northern Sea Route from the Arctic to Asia and Europe. The Syradasayskoye mine has been promoted by Severnaya Zvezda, a subsidiary of Artic Energy, a company owned by Roman Trotsenko, who is reportedly close to the inner circle of President Vladimir Putin. The US added Artic Energy and 16 companies associated with Trotsenko family company AEON to the sanctions list this year. Central to the development of the mine was the commissioning of a fleet of 16 purpose-built ships, with the first two originally scheduled to be commissioned in 2025. Russian media reports state that Severnaya Zvezda has not yet signed a contract to construct the ships. The presence of Trotsenko’s companies on the US sanctions list is likely to frustrate the possibility of contracting commercial bulk carriers. (Barents Observer)
ADB reaches tentative agreement on Indonesian plant closure: The Asian Development Bank (ADB) has negotiated a tentative agreement with the state-owned power utility company PLN and the private power producer PT Cirebon Electric Power to terminate the power purchase agreement for 660 MW Cirebon-1 plant in December 2035 instead of July 2042. The first agreement under the ADB’s Energy Transition Mechanism (ETM) involves refinancing the project at a US$250-US$300 million lower overall cost and reducing the term of the power purchase agreement without financial impacts on the plant owners. The ADB expects the deal to be finalised in the first half of 2024. The ADB’s ETM project is also involved in projects in Kazakhstan, Pakistan, the Philippines, and Vietnam, with the bank stating it is “considering” deals in two other countries. (Straits Times, Asian Development Bank)
Vietnam present Just Energy Transition Plan at COP28: Vietnam’s US$15.83 billion Just Energy Transition Partnership allows for the construction of new coal plants up to 2030 and the upgrading of plants over 20 years old to potentially run on biomass and ammonia if “the price is right”. Under the plan, plants over 40 years old will either be decommissioned or converted to operate on gas, biomass, ammonia or hydrogen. Under the plan’s terms, Vietnam’s coal fleet capacity will reach 30,200 MW in 2030, up from the current 26,700 MW. Vietnam’s previous power development plan proposed increasing coal capacity to 37,000 MW. A coalition of NGOs at COP28 highlighted that six Vietnamese climate leaders remain imprisoned because of their advocacy for clean energy and the protection of community rights. The Vietnam Climate Defenders Coalition – including International Rivers, Global Witness and the Center for Energy, Ecology and Development – called on multilateral development banks and donor governments to seek the urgent release of the climate leaders. (Argus, International Rivers)
West Australian gov't bails out mining company to keep coal plant going: West Australian Premier Roger Cook has pledged to provide A$220 million (US$144 million) to keep the Griffin coal mine operating until 2026. Griffin Coal, which Deloitte is currently running as the appointed receiver, has the long-term coal supply contract for the 440 MW Bluewaters Power station, owned by a joint venture of Sumitomo and Kansai. The plant supplies about 15 per cent of Western Australia’s electricity. With estimated losses of about A$50 million (US$31.2 million) annually, Deloitte sought to renegotiate the coal supply contract, but the owners of the Bluewaters plant objected. While the state government had previously spent $39.3 million (US$25.7 million) propping up the mine, the standoff continued. The government said the latest deal would “allow time to prepare for a potential mine closure” and for other industrial customers to reduce their dependence on the mine. The state government is also subsidising the operation of Yancoal’s Premier mine, which supplies state-owned Synergy’s Muja and Collie power stations. (ABC News, West Australian Government)
US court considers possible penalties in Oakland coal terminal case: The developer of the proposed Oakland coal terminal, Oakland Global Rail Enterprise, has requested Alameda Superior Court Judge Noel Wise allow the company to decide whether it would prefer to be paid US$148 million in “lost profits” or extend the project construction deadline in its cancelled lease by at least two years and five months. In October, Wise issued a tentative ruling supporting the argument that Oakland City Council breached its contract with Oakland Bulk and Oversized Terminal (OBOT) by not granting an extension to proceed with the construction of the terminal in Oakland. Port developer Phil Tagami has proposed the port include the storage and export of coal, products the council decided in 2016 should not be transported through the city. A lawyer for Oakland challenged the ability of the company to back up claims of losses with substantive evidence. Wise said she would issue a tentative ruling before Christmas Day with a final ruling in the first week of January. (Courthouse News Service)
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Just Energy Transition Investment Plan and the Just Energy Transition Implementation Plan, South African Government, December 2023. (Pdf)
The 8-page summary of the investment plan provides an overview of South Africa’s Just Energy Transition Plan, and the 304-page investment plan sets out the specific short- and medium-term outcomes in key portfolios, including energy infrastructure and the designated institutions to lead the work on South Africa’s decarbonisation commitments.
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