• Sunday, Jan 17, 2021
  • Last Update : 06:54 pm

India's love affair with coal cools as pressure grows on sector

  • Published at 06:28 pm November 24th, 2020
India Coal Industry
File photo: Workers drill at an open cast coal field at Dhanbad distric,t in Jharkhand September 18, 2012 Reuters

India has the world's fourth-largest reserves of the fossil fuel and its cities are often shrouded in coal-induced smog

Funding for coal projects in India has plunged for the second straight year, new figures showed Tuesday, as the world's second biggest coal importer weans itself off the dirty fuel.

Research was released showing a drop in investment days after Prime Minister Narendra Modi reaffirmed the country's commitment to exceeding its targets under the Paris climate agreement.

India has the world's fourth-largest reserves of the fossil fuel and its cities are often shrouded in coal-induced smog, but Modi on Sunday told a virtual G20 summit that the South Asian giant was "exceeding" its targets.

Coal financing dropped 82% last year following a 90% decline in 2018, the Delhi-based Centre for Financial Accountability said in a report.

The authors, who analyzed 50 loans to 43 coal-fired and renewable projects in India last year, said there was also a "significant drop" in state financing for coal.

Lending to renewable developments contracted by six percent but it made up 95% of total investment in energy, the group said.

"A significant drop in project finance to coal means that financial institutes are beginning to realize the associated financial and reputational risk in investing in coal," the group's executive director Joe Athialy said.

Modi told the G20 summit hosted by Saudi Arabia that India was "not only meeting our Paris Agreement targets, but also exceeding them."

He said the vast nation of 1.3 billion people had adopted low-carbon and climate-resilient development practices.

India was among the world's biggest investors in renewables last year, ploughing $9.3 billion into the sector, according to a report jointly issued by the UN Environment Program and Bloomberg New Energy Finance.

The latest funding report comes weeks after a subdued response to the country's first round of coal mining auctions, which were announced earlier this year by Modi in a bid to boost the coronavirus-hit economy.

Only half of 38 mines were auctioned, and all went to domestic players despite the government now permitting 100 percent foreign direct investment.

"Commercial mining has been opened at a time when the world is transitioning away from coal as a fossil fuel to cleaner energy sources," India Ratings and Research said in a note last week.

"Globally, the funding sources to fossil fuel have declined as large financial institutions and equity investors have stayed away from the sector."

 

52
Facebook 51
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail