Buying out coal plants for climate goals

Reclaim Finance critiques a proposed initiative by the Asian Development Bank and Prudential to accelerate the closure of coal plants in Asia. The organization warns that the scheme could provide a financial lifeline to polluting plants, allow major fossil fuel funders like Citi, HSBC, and BlackRock to greenwash their reputations, and fail to ensure that resale profits are used for the energy transition rather than further fossil fuel investment.

• The initiative involves financial institutions that are among the largest funders of the coal sector, including Citi, HSBC, and BlackRock, leading Reclaim Finance to characterize their involvement as a "vast greenwashing exercise" as long as they continue to fund coal expansion.
• There is a risk that the scheme acts as a reprieve rather than a planned closure, potentially allowing highly polluting 'subcritical' plants to remain profitable for up to 15 years instead of being fast-tracked for closure by 2030.
• The document identifies several risks regarding climate impact: plant operators might increase intensity of use to maximize short-term profits, and current owners might use resale funds to invest in other fossil fuel assets like gas or coal plants.
• The proposed investment fund for renewable energy may lack additionality, potentially paying private operators to develop assets they would have pursued regardless for profit.
• The scheme's structure appears to shift financial risk toward development banks while providing economic benefits to private investors, with no current details on support for displaced employees or payment for pollution damages.

APA

admin (2021). Buying out coal plants for climate goals. Reclaim Finance. https://reclaimfinance.org/site/en/2021/08/10/buying-out-coal-plants-for-climate-goals/

Chicago

admin. Buying out coal plants for climate goals. Reclaim Finance, 2021. https://reclaimfinance.org/site/en/2021/08/10/buying-out-coal-plants-for-climate-goals/.

Wikipedia

{{cite press release |last1=admin |title=Buying out coal plants for climate goals |publisher=Reclaim Finance |date=10 August 2021 |url=https://reclaimfinance.org/site/en/2021/08/10/buying-out-coal-plants-for-climate-goals/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{admin2021buying, author = {admin}, title = {{Buying out coal plants for climate goals}}, publisher = {Reclaim Finance}, year = {2021}, month = aug, url = {https://reclaimfinance.org/site/en/2021/08/10/buying-out-coal-plants-for-climate-goals/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }