Quantcast

World Bank Quits Coal in Kosovo, Renewables Cheaper

Energy
World Bank president Jim Yong Kim speaks at the International Monetary Fund and World Bank annual meeting in Bali, Indonesia on Oct. 11. Goh Chai Hin / AFP / Getty Images

Correction: A previous version of this article ran the headline The World Banks Quits Coal. The article has been updated for accuracy to emphasize that the shift to renewables was driven by cost.

The World Bank has withdrawn its support for a planned 500-megawatt coal plant in Kosovo because it cannot compete with renewable energy on price, president Jim Yong Kim said Wednesday.

The power plant was the last coal project being considered for financing by the World Bank.


"We have made a very firm decision not to go forward with the coal power plant because we are required by our by-laws to go with the lowest cost option, and renewables have now come below the cost of coal," Kim said (skip to the 55:03 mark in this video). "So without question, we are not going to do that."

The remarks were made during the World Bank and the International Monetary Fund meetings in Bali, Indonesia.

The World Bank provides financial, advisory and technical support to developing countries. In December, the Washington-based lender announced at the One Planet climate summit it will "no longer finance upstream oil and gas, after 2019." The move was also aimed at helping countries meet their emissions reduction pledges made at the 2015 Paris climate talks.

Kosovo's government announced in 2015 that it had signed an agreement with the World Bank and U.S. company ContourGlobal to build the facility, according to Climate Home News.

It is not clear how the government will proceed with the plant now that it no longer has the World Bank's backing, Reuters reported. Kosovo has the fifth largest lignite reserves in the world and most of its electricity is produced in two aging coal-fired plants.

The Sierra Club praised the bank's move. Lignite, also known as brown coal, is considered one of the dirtiest fossil fuels. The Sierra Club said in a press release that lignite coal is responsible for hundreds of premature deaths, tens of thousands of new cases of childhood respiratory diseases and costs millions in healthcare each year.

Developers have already proposed wind, solar and battery solutions that could provide the same amount of power at a lower cost and with less deadly pollution, the group added.

A January report from the International Renewable Energy Agency found that renewables have emerged as an increasingly competitive way to meet new power generation needs, and is expected to be consistently cheaper than fossil fuels in just a few years.

"This decision by the World Bank recognizes several key truths," John Coequyt, Sierra Club's global climate policy director, said in the press release. "First, the public doesn't want dirty coal. Second, coal is a bad investment, because clean energy is cheaper than coal in places all over the world. Third, if we want to curb the most catastrophic effects of the climate crisis, we have to move off coal immediately."

EcoWatch Daily Newsletter

Pixabay

By Claire L. Jarvis

A ruckus over biofuels has been brewing in Iowa.

Read More Show Less
Serena and Venus Williams have been known to follow a vegan diet. Edwin Martinez / Flickr / CC BY 2.0

By Whitney E. Akers

  • "The Game Changers" is a new documentary on Netflix that posits a vegan diet can improve athletic performance in professional athletes.

  • Limited studies available show that the type of diet — plant-based or omnivorous — doesn't give you an athletic advantage.

  • We talked to experts about what diet is the best for athletic performance.

Packed with record-setting athletes displaying cut physiques and explosive power, "The Game Changers," a new documentary on Netflix, has a clear message: Vegan is best.

Read More Show Less
Sponsored
An illegally trafficked tiger skull and pelt. Ryan Moehring / USFWS

By John R. Platt

When it comes to solving problems related to wildlife trade, there are an awful lot of "sticky widgets."

Read More Show Less
Pexels

By Franziska Spritzler, RD, CDE

Inflammation can be both good and bad.

On one hand, it helps your body defend itself from infection and injury. On the other hand, chronic inflammation can lead to weight gain and disease.

Read More Show Less
Pexels

By Dan Nosowitz

It's no secret that the past few years have been disastrous for the American farming industry.

Read More Show Less
Sponsored
Pexels

By Gavin Van De Walle, MS, RD

Medium-chain triglyceride (MCT) oil and coconut oil are fats that have risen in popularity alongside the ketogenic, or keto, diet.

Read More Show Less
Pexels

By Bijal Trivedi

The Centers for Disease Control and Prevention (CDC) released a report on Nov. 13 that describes a list of microorganisms that have become resistant to antibiotics and pose a serious threat to public health. Each year these so-called superbugs cause more than 2.8 million infections in the U.S. and kill more than 35,000 people.

Read More Show Less
Rool Paap / Flickr / CC BY 2.0

By Franziska Spritzler, RD, CDE

Inflammation can be good or bad depending on the situation.

Read More Show Less