Expert Exchange: Financing the early retirement of coal-fired power plants

Coal-fired power plants (CFPPs) are responsible for one fifth of global greenhouse gas emissions. Closing these plants is key to achieving global climate targets. However, many CFPPs will have to be closed before their life expectancy is reached. 

The extent to which it makes economic sense to take CFPPs out of the market depends on not only the framework conditions and prices for renewable energies but also the financing costs and coal prices. 

In some cases, it is profitable to replace existing CFPPs with investments in renewable energies. In other cases, owners must be compensated for early decommissioning. Financial incentives for early decommissioning can encourage power plant operators to switch to cleaner alternatives sooner. Financial instruments provided by development banks (such as guarantees, insurance, or concessional loans) can mitigate the financial risks associated with coal phase-out.  

This Expert Exchange will provide an overview of the economics of early decommissioning of CFPPs and the instruments offered by international development banks to support this decommissioning. Coal regions in transition will receive information on access to finance. 

Speakers will include:

• Julia Skopourska, Powering Past Coal Alliance
• Isabella Suarez, TransitionZero
• Oliver J. Herrmann, Climate & Company

The event will be held in English with translation into the following languages available:

• Bahasa Indonesia
• Mongolian
• Thai
• Vietnamese