Search Climate Insights Directory

The report assesses Japan's second NDC, which targets a 60% reduction in greenhouse gas (GHG) emissions by 2035 and 73% by 2040 compared to 2013 levels. The authors argue these targets are insufficient compared to the global average required to limit warming to 1.5°C and risk Japan losing market share in the global clean energy transition. Key recommendations include accelerating the deployment of solar and wind power, implementing a more effective carbon pricing mechanism with a binding cap, and establishing a clear roadmap for the phase-out of coal-fired power plants.

The document examines the socio-economic challenges of the energy transition in South Africa and Brazil, focusing on the gap between decarbonisation goals and the actual reskilling of vulnerable workforces. In South Africa, the transition is complicated by a heavy reliance on coal for electricity and high unemployment, while Brazil faces challenges in balancing its clean energy mix with high emissions from agriculture and deforestation. Both nations struggle with structural inequality and the need for robust social protection systems to ensure that the shift to green industries does not exacerbate existing poverty or exclude informal workers.

The document establishes a reference framework for financial actors to evaluate power utility transition plans across four categories: emissions reduction, energy planning, capital expenditure (CAPEX), and climate planning. It argues that for a plan to be 1.5°C-aligned, utilities must commit to a carbon-neutral power sector by 2035 in Europe and OECD countries (2040 elsewhere), implement plant-by-plant closure plans for fossil fuels without sales or conversions, and dedicate over 86% of CAPEX to sustainable technologies by 2030. The guide also recommends that financial institutions implement sectoral exclusion policies for fossil gas and achieve a 6:1 financing ratio in favor of sustainable power over fossil fuels by 2030.

The CCPI 2025 reports that while 61 of 64 assessed countries increased their renewable energy share over five years, the top three ranks remain vacant as no country performs well enough to meet Paris Agreement goals. Denmark ranks 4th, while oil and gas producers like Iran, Saudi Arabia, the UAE, and Russia are the lowest performers. The G20, responsible for over 75% of global emissions, shows poor overall performance with only the UK and India ranking as high performers.

The document argues that Asia can achieve a more rapid coal phase-out by stopping the construction of new plants, which would allow 90% of the existing fleet to exceed their 20-year investment recovery period by 2040. It critiques co-firing with ammonia or biomass as expensive and marginally effective, while highlighting successful financing models from IEEFA and the Griffith Asia Institute that make early retirement financially viable through renewables bundling and refinancing. The briefing emphasizes that a just transition requires concessional and multilateral financing from developed nations to support coal-dependent communities.

The Sherco coal plant in Minnesota transitioned to a clean energy hub by replacing retired capacity with 710 MW of solar and a 10 MW/1,000 MWh iron-air battery system. This transition was enabled by Inflation Reduction Act (IRA) incentives, the use of a 'generator replacement' process to bypass interconnection queues, and early community and labor engagement. The project serves as a model for 'clean repowering,' which RMI estimates could deploy 250 GW of clean energy and save ratepayers $12 billion nationwide.

South Africa is transitioning from a coal-dependent economy to a low-carbon one, utilizing frameworks like the Just Energy Transition Partnership (JETP). However, the implementation phase reveals a significant disconnect between national/international actors—who prioritize emission reductions and energy security—and local communities, who prioritize employment, basic services, and poverty alleviation. Key barriers include insufficient subnational institutional capacity, rigid financial mechanisms unsuitable for high-risk systemic change, and a lack of transparency in selecting project beneficiaries. The document specifically highlights green hydrogen as a potential new value chain, though its viability is currently hindered by high costs and the perception of just transition elements as additional financial burdens rather than core objectives.

The document examines South Africa's transition from coal, noting that while the country is a global leader in planning, it faces significant implementation hurdles. Key issues include a misalignment between the low ambitions of national government and foreign funders versus the high expectations of local communities and unions. The brief identifies limited local institutional capacity and inadequate conventional financing as major barriers. It specifically discusses green hydrogen projects, where social goals are often treated as secondary to cost and technical feasibility. The authors argue that transparent decision-making and addressing local priorities—such as basic services and food security—are essential to maintain public legitimacy and ensure the transition's success.

The European Union is finalizing its COP29 position, focusing on securing a new global climate finance target to replace the expiring $100 billion annual commitment and advocating for a 90% reduction in greenhouse gas emissions by 2040. The EU intends to push for increased funding for developing countries, encourage contributions from highly polluting nations like China, and seek specific phase-out dates for coal, gas, and oil.

The document explores transition finance as a tool for emerging and developing economies, particularly in Asia, to decarbonise high-emitting sectors that struggle to meet strict green finance criteria. It analyses the taxonomies of Japan, Singapore, Hong Kong, and ASEAN, while highlighting risks of 'transition-washing' and the need for science-based targets and independent verification to ensure alignment with 1.5°C pathways.

Reclaim Finance identifies persistent problematic financing of the coal sector by BNP Paribas, Crédit Agricole, Société Générale, and BPCE/Natixis between 2021 and 2023. Despite overall funding decreases, the report finds that these banks supported 26 problematic groups, including coal developers and companies without climate-aligned exit dates. The analysis highlights four major policy loopholes—exclusion at the subsidiary level rather than the group level, minority ownership thresholds, the treatment of 'captive' industrial power plants, and reliance on confidential internal documents—which the report argues may constitute greenwashing and financial risk mismanagement.

Reclaim Finance analyzed transactions from 2021 to 2023 and found that four major French banks supported 26 problematic coal groups despite having policies to exit the sector. The report identifies four primary loopholes: exclusion only at the subsidiary level, lack of exclusion for minority stakes under 50%, exclusion of 'captive' coal plants at industrial sites, and reliance on confidential internal documents to justify financing companies without public exit dates. The author argues these practices are misleading to investors and regulators, urging the AMF and ACPR to sanction such 'greenwashing' and demand full transparency.

The document examines the economic, political, and governance challenges hindering Indonesia's transition away from coal, emphasizing the need for multi-level governance and social protections. It highlights the role of artificial price caps and political 'lock-in' as primary barriers, while noting a significant gap in planning capacity between national and subnational governments. The brief recommends establishing a Just Energy Transition Support Facility under Bappenas, implementing economic diversification for coal-dependent workers, and reforming electricity markets to eliminate coal subsidies and facilitate renewable energy integration.

The document examines the socio-economic and political challenges of phasing out coal in Indonesia, highlighting the role of artificial price caps, political 'revolving doors', and limited government planning capacity. It proposes the creation of a Just Energy Transition Support Facility under Bappenas to coordinate governance, finance, and economic diversification, while advocating for the removal of coal subsidies and the reform of the electricity market to favor renewable energy.

The document analyzes Colombia's electricity balance through 2038, finding that while average energy supply remains sufficient, 'firm energy' (reliable capacity) faces deficits as early as 2029 depending on the coal phase-out scenario. To avoid these deficits, the report argues for significantly accelerating renewable energy deployment, improving transmission infrastructure, and implementing energy storage to replace the high reliability of coal plants.

The UK officially entered a coal-free power era on 1 October 2024 with the closure of the Ratcliffe-on-Soar plant. This transition saw power sector emissions drop by 74% between 2012 and 2023, driven by a combination of carbon pricing, renewable energy growth, and grid investment. The report argues that while the coal phase-out provides a roadmap, the next goal of clean power by 2030 will require a more complex whole-systems approach to displace gas and manage grid stability.

This report discusses the restructuring of South Africa's Department of Mineral Resources and Energy (DMRE) into two separate entities—the Department of Mineral and Petroleum Resources and the Department of Electricity and Energy—following the formation of a Government of National Unity. It outlines the roles these new departments must play in managing the coal phase-out, the growth of renewable energy, and the sustainable mining of minerals required for the green economy.

The report finds that Alberta can almost completely decarbonize its electricity generation within the next decade using wind, solar, and gas with carbon capture. While federal Clean Electricity Regulations are a point of political contention, modelling suggests they have little impact on the long-term supply mix compared to the massive projected growth in electricity demand driven by industrial electrification. The transition's success depends on scaling up transmission infrastructure and maintaining policy stability to attract private investment.

The report concludes that Alberta has the natural resources and capacity to decarbonize its electricity production almost completely within the next decade. It highlights a transition dominated by wind, solar, and natural gas with carbon capture and storage (CCS), while noting that the primary challenge is not land availability but the expansion of transmission infrastructure to meet a potentially doubling demand for electricity driven by industrial electrification.

The policy brief contends that despite France's diplomatic leadership and the Paris Place's 2019 commitment to phase out coal, French financial institutions continue to fund coal development. It highlights the severe health and climate impacts of coal, the failure of voluntary commitments—specifically among four major French banks—and calls for a national legal ban on financial services for coal projects to ensure a credible transition.