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Some of the world’s major economies want to finalize a plan ahead of this year’s United Nations COP29 climate summit in November to stop new private sector funding for coal projects, Reuters reported this week.
If approved, the draft proposal by the Organization for Economic Cooperation and Development would be the first move by a multilateral institution to curb financing for coal, according to the report.
The draft plan reportedly instructs investors, banks and insurers to halt new financing to existing or planned coal projects, and end funding to companies building coal infrastructure.
OECD countries – whose 38 members include most of the world’s biggest market-focused democracies – are said to be preparing feedback on the proposed policy, which would be non-binding but aim to set an international standard used by company boards and shareholders.
The U.S., Britain, France, Canada and the European Union reportedly are among backers of the proposal, with the biggest pushback coming from Japan, the world’s third biggest importer of coal.
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