Boycotts of coal projects by western financial institutions will be counterproductive if they discourage investment to reduce power station emissions, the coal industry has warned.
A growing number of European and US banks, insurers and other institutional investors have announced bans or restrictions on coal investment in support of global efforts to tackle climate change and air pollution.
The head of the World Coal Association, which represents international producers, said institutions would have more impact by working with the industry to develop cleaner coal-fired power plants
“If you ignore the fact that coal is going to continue to play a big role in the global energy system, you ignore the technology we need to make it more efficient,” said Benjamin Sporton, WCA chief executive. “Developers want to work with international organisations and banks to finance that technology.”