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The document asserts that anthropogenic greenhouse gas emissions constitute marine pollution, creating a legal duty for States to phase out fossil fuels. It examines how advisory opinions from the International Tribunal for the Law of the Sea (ITLOS), the International Court of Justice (ICJ), and the Inter-American Court of Human Rights (IACtHR) reinforce the rights of vulnerable island States and establish standards of due diligence and corporate accountability for climate-related ocean harm.

The report details RMI's engagement in a transition credit pilot for the SLTEC coal plant in the Philippines, proposing a structured four-phase approach—Project Screening, Defining Evaluation Scope, Pre-Feasibility Analysis, and Recommendations—to ensure project integrity and financial viability. It highlights the role of transition credits in filling financing gaps for early coal retirement and the necessity of rigorous baseline setting and clean energy replacement planning to avoid moral hazard and leakage.

The report presents evidence that major fossil fuel companies possessed accurate knowledge of the catastrophic effects of their products on the global climate as early as the 1980s but instead funded campaigns of disinformation and deception. It highlights specific internal documents from Shell and ExxonMobil, a 1998 American Petroleum Institute 'Roadmap' to increase public uncertainty, and allegations of a criminal hacking scheme targeting climate advocates. The Union of Concerned Scientists calls for these corporations to cease greenwashing, pay for climate damages, and accelerate a global phaseout of fossil fuels.

In 2024, global coal power capacity increased by 18.8 GW, as 44.1 GW was commissioned and 25.2 GW retired. While the EU27 saw a fourfold increase in retirements and the UK completed its coal phaseout, global progress was offset by significant expansion in China and India. China commissioned 30.5 GW (70% of the global total) and saw 94.5 GW in new construction starts. India recorded its highest-ever level of new coal proposals at 38.4 GW. Conversely, coal proposals in OECD countries dropped from 142 in 2015 to five today, though retirements in these nations must triple to align with the Paris Agreement.

The document examines the 'climate-debt trap' facing low- and middle-income countries (LMICs), where escalating external debt—reaching nearly US$6.5 trillion in 2023—crowds out climate investment. It analyzes existing financial mechanisms such as Climate Resilient Debt Clauses (CRDCs), Catastrophe (CAT) bonds, and debt swaps, while critiquing the G20 Common Framework for its inadequacy. The authors advocate for the cancellation of 'odious debt' linked to fossil fuel projects and propose that a Fossil Fuel Treaty could establish a Debt Resolution Facility to help member nations renegotiate debts in exchange for phasing out fossil fuels.

In 2024, global coal power reached a 20-year low in new capacity additions (44 GW), though the total global fleet still grew by 18.8 GW. While the EU27 saw a fourfold increase in decommissioned capacity and the UK closed its last coal plant, China saw record construction starts (94 GW) and India proposed record new capacity (38 GW). Russia has emerged as a leading developer of new coal projects, ranking fifth globally for development capacity, with plans focused on Siberia and the Far East to support energy demand and the domestic coal industry.

In 2024, the world commissioned the lowest amount of new coal power capacity in twenty years (44 GW), yet the global fleet still grew by 18.8 GW because additions exceeded retirements (25.2 GW). While the UK became the sixth country to phase out coal entirely and EU27 retirements grew fourfold, China and India dominated new developments, accounting for 92% of all newly proposed coal capacity. China saw its highest construction starts since 2015 (94 GW), and India recorded its highest year for new proposals (38.4 GW). In the OECD, proposals dropped to five, but annual retirements must more than triple to 70 GW to align with 1.5C pathways. Other trends include a surge in captive coal plants in Indonesia, the promotion of ammonia co-firing in Japan and South Korea, and continued coal pursuit in Russia, Mongolia, and Central Asia.

In 2024, the world commissioned the lowest amount of new coal power capacity in twenty years (44 GW), yet the global fleet still grew by 18.8 GW because additions exceeded retirements. While OECD countries and the EU are accelerating phaseouts—with the UK becoming the sixth country to eliminate coal entirely—China and India continue to drive global expansion. China saw its highest construction starts since 2015 (94 GW), and India recorded its highest year for new proposals (38.4 GW). Outside these two nations, coal development has declined for ten consecutive years. However, the report notes that current retirement rates in OECD countries must more than triple to meet 1.5°C warming targets.

In 2024, the world commissioned the lowest amount of new coal power capacity in twenty years (44 GW), yet the global coal fleet still grew by 18.8 GW because additions exceeded retirements. The report highlights a stark divergence: while the UK became coal-free and EU27 retirements quadrupled, China saw its highest construction starts since 2015 (94 GW) and India recorded its highest year for new proposals (38.4 GW). Together, China and India accounted for 92% of all newly proposed coal capacity in 2024. In the OECD, proposals have plummeted from 142 in 2015 to five today, though annual retirements must more than triple to 70 GW to meet 1.5°C pathways. The report also notes the rise of 'captive' coal plants in Indonesia and the promotion of ammonia co-firing in Japan and South Korea as strategies to prolong coal use.

RMI analysis indicates that replacing coal-fired units at the Colstrip Generating Station with a portfolio of solar, wind, and battery storage could save Montana ratepayers between $500 million and $1.17 billion over 30 years. The document urges Northwestern Energy and the Montana Public Service Commission to prioritize coal-to-clean reinvestment and Energy Infrastructure Reinvestment (EIR) financing in upcoming rate cases and integrated resource plans.

The document argues that offshore oil and gas production poses severe risks, including underreported greenhouse gas emissions from flaring and methane leaks, the high potential for devastating well blowouts—especially in deep waters—and chronic marine pollution from produced water. It highlights the failure of current cleanup technologies and the long-term socio-economic damage to coastal communities, concluding that halting offshore expansion is essential to meeting the 1.5°C global warming limit.

The report argues that COP29 failed to advance human rights-based climate action, citing a weak new climate finance goal, the operationalization of flawed carbon markets, and a restrictive civic environment in the host country. It highlights the removal of references to the right to a healthy environment and the lack of progress on just transition and gender justice, calling for stronger legal obligations and human rights safeguards in future UNFCCC processes.

The Monetary Authority of Singapore (MAS) and McKinsey have proposed using 'transition credits' (carbon offsets) to attract finance for the early retirement of coal plants in Asia. Reclaim Finance argues that this approach replicates the failures of the broader offset industry, specifically regarding the inability to prove 'additionality' and the risk of inflated emission reduction estimates. The document asserts that offsets create perverse incentives that may deter governments from enacting national coal phaseout policies or providing concessional finance. It concludes that a successful transition requires increased public concessional funding and accelerated investment in sustainable power alternatives rather than a reliance on tradeable offsets.

The document examines how ISDS allows foreign investors, particularly in the fossil fuel industry, to sue governments over climate regulations, leading to a 'chilling effect' where states delay or weaken policies to avoid costly awards. It argues that these protections act as a subsidy for GHG-intensive industries, contradicting Article 2.1(c) of the Paris Agreement. The brief concludes that fragmented procedural reforms are insufficient and advocates for a unified global approach, including the use of COP29 and Nationally Determined Contributions (NDCs) to coordinate ISDS withdrawals or carve-outs.

Japan is the only G7 country without a clear coal phaseout deadline, with coal accounting for nearly one-third of its electricity generation as of 2023. The Japanese government is promoting 'next-generation' technologies, specifically carbon capture and storage (CCS) and ammonia co-firing, which the report characterizes as 'false solutions' due to their high cost and limited effectiveness. These policies are supported by market mechanisms like the Capacity Market and the Long-Term Decarbonization Power Source Auction, which incentivize the continued operation of coal plants. Furthermore, Japan's three megabanks—Mizuho, MUFG, and SMBC—provided US$23.5 billion in coal financing between 2021 and 2023, often utilizing loopholes that exclude only new clients. The report also highlights the Asia Zero Emission Community (AZEC) initiative, noting that 35% of its 158 agreements involve fossil fuels, potentially locking Southeast Asian nations into outdated energy systems.

The UK became the first G7 country to phase out coal power on September 30, 2024, with the closure of the Ratcliffe-on-Soar plant. However, the author contends that this domestic achievement is contradicted by the actions of UK financial institutions, which provided US$6.5 billion to the global coal industry between 2021 and 2023. The document calls for stronger financial regulations to end coal expansion funding and redirect capital toward renewable energy and early decommissioning.

In 2021, IDB Invest and Engie Energia Chile (EECL) implemented a blended finance package to retire two coal units at the Tocopilla plant early and finance the 151 MW Calama wind farm. The deal utilized a results-based concessional loan where interest payments at maturity are reduced based on verified carbon emissions abated through early retirement, using a pre-agreed carbon price of $3/ton. This transaction was enabled by Chile's top-down coal phaseout policy, the lower cost of renewable energy compared to legacy coal Power Purchase Agreements (PPAs), and the involvement of the Climate Investment Funds (CIF).

In 2022, Starwood Energy Group (now Lotus Infrastructure) accelerated the retirement of the Logan (225 MW) and Chambers (285 MW) coal plants by 30 months, moving the date from 2024 to 2022. This was achieved through a three-part strategy: renegotiating Power Purchase Agreements (PPAs) with Atlantic City Electric (ACE), refinancing project debt with a $200 million loan from MetLife, and planning the redevelopment of the sites into grid-scale battery storage. The transaction resulted in an estimated reduction of 3.9 million tons of CO2 and saved ACE customers approximately $30 million.

The document highlights a gap between net zero commitments and the actual financing of coal phaseouts, noting that commercial banks provided US$470 billion to the coal industry between 2021 and 2023. It argues that internal bank policies and financed emission targets are not valid excuses for inaction, as institutions can create specific carve-outs for decommissioning. The author proposes a new "phaseout emissions" category to track support for coal retirements without penalizing overall portfolio targets and urges the public sector to lead pilot projects and provide concessional financing to demonstrate the viability of just coal phaseouts.

Global operating coal capacity increased by 48.4 GW in 2023, reaching a total of 2,130 GW, primarily driven by a surge of new plants in China. While construction starts hit record lows outside of China, China's new construction starts reached an eight-year high of 70.2 GW. Despite a growing number of countries committing to 'No New Coal', 75% of global operating coal capacity still lacks a specific closure commitment, hindering alignment with the Paris Agreement goals.