Opposition from Japan has scuppered OECD talks aimed at phasing out export credits for coal technology, Reuters has reported.
The year-long efforts to end subsidies ended in stalemate as Japan, the largest distributor of such financial support, led opposition to the move. Japan provided around US$20 billion of public money to support the export of coal technology between 2007 and 2014, according to environmental group, WWF.
In the EU, Germany is largest user of export credits to support the coal industry – but committed to only using such aid to support new high-efficiency low-emission (HELE) technologies.
“Export credit guarantees should only be available for new, highly-efficient coal powered stations and only then if the power stations are embedded in and coherent with the importing country’s climate protection strategy,” a spokesperson from the German Ministry for Economic Affairs and Energy said.
Sources close to talks told Reuters that there could another attempt at a deal later this year if countries showed signs of flexibility.
Written by Jonathan Rowland. Source: Reuters.