World Bank moves to limit funding for coal generation

The Bank has shifted away from coal power, and is trying to encourage developing nations to do the same.

The World Bank has announced a major repositioning of how it funds energy projects in developing nations, promising to massively scale back its support for coal-powered generation. In a paper out this week, the group confirms that it will provide financial support for greenfield coal power "only in rare circumstances." It continues:

Considerations such as meeting basic energy needs in countries with no feasible alternatives to coal and a lack of financing for coal power would define such rare cases.

At the same time, the bank will support interventions aimed at reducing the greenhouse gas emissions associated with coal plants, saying that:

Efficiency improvements at existing plants are among the most cost-effective means of reducing local and global environmental impacts of coal.

The topic of emissions in developing nations is a tricky one. On the one hand, many such countries see clean power as an unaffordable luxury, and resent the fact that the global north was able to develop using polluting industry and only then develop an environmental conscience. On the other, even though developed nations contribute a disproportionate chunk of global emissions, their per capita contributions are declining (or rather, increasing at a slower rate) and developing nations' just keep on climbing.

Against that background, an obvious first step is for international development programmes to stop actively helping developing nations develop polluting technologies instead of renewable ones. And when the World Bank makes a decision to change its focus, there's some heft to it: the group financed over $50bn worth of infrastructure projects last year.

That said, in practice, the change might not mean much. The Washington Post's Brad Plumer points out that it's already three years since the Bank's last big funding of a coal project, when it loaned $3bn to South Africa to build a plant near Johannesburg.

But the new president of the Bank, Jim Yong Kim, warns that there'll be at least one difficult choice quite soon. Plumer writes:

The one major test of the new policy will come in Kosovo,which wants to build a new 600-megawatt plant fired by lignite coal, a particularly carbon-intensive fuel. The bank needs to decide whether to offer loan guarantees, and Kim has signaled before that Kosovo may be an exception to the coal ban. “Climate change and the coal issue is one thing,” hesaid in April, “but the humanitarian issue is another, and we cannot turn our backs on the people of Kosovo who face freezing to death if we don’t move in.”

The move follows the Obama administration's plan to do the same thing. In June, the president said that he was "calling for an end to public financing for new coal plants overseas unless they deploy carbon-capture technologies, or there’s no other viable way for the poorest countries to generate electricity", which mainly affected the US Export-Import Bank, an institution which loans money to foreign nations looking to buy infrastructure from American companies.

All said and done, though, the fact that the biggest recent shifts against fossil-fuel generation are limits on foreign contribution is telling. When countries start changing their own behaviour – rather than just attempting to change other's – is when we'll know they are really serious about cutting emissions. And they need to be really serious really soon, because time is running out.

The World Bank. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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UnHerd's rejection of the new isn't as groundbreaking as it seems to think

Tim Montgomerie's new venture has some promise, but it's trying to solve an old problem.

Information overload is oft-cited as one of the main drawbacks of the modern age. There is simply too much to take in, especially when it comes to news. Hourly radio bulletins, rolling news channels and the constant stream of updates available from the internet – there is just more than any one person can consume. 

Luckily Tim Montgomerie, the founder of ConservativeHome and former Times comment editor, is here to help. Montgomerie is launching UnHerd, a new media venture that promises to pull back and focus on "the important things rather than the latest things". 

According to Montgomerie the site has a "package of investment", at least some of which comes from Paul Marshall. He is co-founder of one of Europe's largest hedge funds, Marshall Wace, formerly a longstanding Lib Dem, and also one of the main backers and chair of Ark Schools, an academy chain. The money behind the project is on display in UnHerd's swish (if slightly overwhelming) site, Google ads promoting the homepage, and article commissions worth up to $5,000. The selection of articles at launch includes an entertaining piece by Lionel Shriver on being a "news-aholic", though currently most of the bylines belong to Montgomerie himself. 

Guidelines for contributors, also meant to reflect the site's "values", contain some sensible advice. This includes breaking down ideas into bullet points, thinking about who is likely to read and promote articles, and footnoting facts. 

The guidelines also suggest focusing on what people will "still want to read in six, 12 or 24 months" and that will "be of interest to someone in Cincinnati or Perth as well as Vancouver or St Petersburg and Cape Town and Edinburgh" – though it's not quite clear how one of Montgomerie's early contributions, a defence of George Osborne's editorship of the Evening Standard, quite fits that global criteria. I'm sure it has nothing to do with the full page comment piece Montgomerie got in Osborne's paper to bemoan the deficiencies of modern media on the day UnHerd launched. 

UnHerd's mascot  – a cow – has also created some confusion, compounded by another line in the writing tips describing it as "a cow, who like our target readers, tends to avoid herds and behave in unmissable ways as a result". At least Montgomerie only picked the second-most famous poster animal for herding behaviour. It could have been a sheep. In any case, the line has since disappeared from the post – suggesting the zoological inadequacy of the metaphor may have been recognised. 

There is one way in which UnHerd perfectly embodies its stated aim of avoiding the new – the idea that we need to address the frenetic nature of modern news has been around for years.

"Slow news" – a more considered approach to what's going on in the world that takes in the bigger picture – has been talked about since at least the beginning of this decade.

In fact, it's been around so long that it has become positively mainstream. That pusher of rolling coverage the BBC has been talking about using slow news to counteract fake news, and Montgomerie's old employers, the Times decided last year to move to publishing digital editions at set points during the day, rather than constantly updating as stories break. Even the Guardian – which has most enthusiastically embraced the crack-cocaine of rolling web coverage, the live blog – also publishes regular long reads taking a deep dive into a weighty subject. 

UnHerd may well find an audience particularly attuned to its approach and values. It intends to introduce paid services – an especially good idea given the perverse incentives to chase traffic that come with relying on digital advertising. The ethos it is pitching may well help persuade people to pay, and I don't doubt Montgomerie will be able to find good writers who will deal with big ideas in interesting ways. 

But the idea UnHerd is offering a groundbreaking solution to information overload is faintly ludicrous. There are plenty of ways for people to disengage from the news cycle – and plenty of sources of information and good writing that allow people to do it while staying informed. It's just that given so many opportunities to stay up to date with what has just happened, few people decide they would rather not know.