Ten guiding principles for financing coal retirement mechanisms

The document outlines ten principles for coal retirement mechanisms (CRMs), emphasizing the immediate cessation of coal expansion, the replacement of lost power with sustainable renewables, and the use of concessional financing in developing countries. It argues that CRMs must avoid emissions leakage, carbon offsets, and retrofitting delays while ensuring transparency and the remediation of social and environmental harms.

• The proposed principles for coal retirement mechanisms (CRMs) require that all phaseouts align with 1.5°C no- or low-overshoot emission pathways and that all financing for coal expansion—including new, expanded, or refurbished plants, mines, and infrastructure—stops immediately.
• CRMs should replace lost coal power generation with sustainable renewables, specifically solar and wind power, energy efficiency measures, and related grid upgrades with storage, while ensuring no emissions leakage occurs.
• The framework mandates that donors provide concessional financing and that CRMs avoid the use of tradeable carbon offsets, retrofitting delays, and public sector-guaranteed bailouts for private institutions.

APA

Martin, L. (2023). Ten guiding principles for financing coal retirement mechanisms. Reclaim Finance. https://reclaimfinance.org/site/en/2023/12/01/ten-guiding-principles-for-financing-coal-retirement-mechanisms/

Chicago

Martin, Léo. Ten guiding principles for financing coal retirement mechanisms. Reclaim Finance, 2023. https://reclaimfinance.org/site/en/2023/12/01/ten-guiding-principles-for-financing-coal-retirement-mechanisms/.

Wikipedia

{{cite press release |last1=Martin |first1=Léo |title=Ten guiding principles for financing coal retirement mechanisms |publisher=Reclaim Finance |date=1 December 2023 |url=https://reclaimfinance.org/site/en/2023/12/01/ten-guiding-principles-for-financing-coal-retirement-mechanisms/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{martin2023ten, author = {Martin, Léo}, title = {{Ten guiding principles for financing coal retirement mechanisms}}, publisher = {Reclaim Finance}, year = {2023}, month = dec, url = {https://reclaimfinance.org/site/en/2023/12/01/ten-guiding-principles-for-financing-coal-retirement-mechanisms/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }