What is the story about?
What's Happening?
FutureCoal, part of the Global Alliance for Sustainable Coal, has issued an open letter to approximately 700 global finance, investment, and government stakeholders, urging them to provide fair and equal funding for coal. The letter, released on September 2 by FutureCoal chairperson Mike Teke, follows the Fund Fair, Fund Equal campaign initiated in June. The campaign calls for the same investment approach to be applied to thermal coal as is applied to metallurgical coal. FutureCoal emphasizes the strategic importance of both types of coal in securing energy, supporting industries, and driving sustainable economic growth. Despite coal's significant role in energy production, many policy frameworks continue to exclude or treat coal unfairly. The letter highlights coal's irreplaceable role in industries such as steel, cement, and fertilizer, and its potential for emissions reduction when paired with modern technologies.
Why It's Important?
The call for equitable funding of coal is significant as coal remains the world's largest source of electricity, accounting for 33% of global energy production. The demand for coal continues to rise, with global consumption reaching a record high in 2024. Over $130 billion was invested by commercial banks across Asia, the US, and Europe. FutureCoal argues that coal cannot be excluded from discussions on energy transition or global economic development, as it powers industries, protects jobs, and supports national development strategies, especially in regions with limited baseload alternatives. The advocacy for responsible coal funding under the Sustainable Coal Stewardship framework aims to balance economic growth with environmental progress, ensuring long-term energy security.
What's Next?
FutureCoal's open letter calls on finance, investment, and insurance stakeholders to support coal responsibly under the Sustainable Coal Stewardship framework. The framework promotes responsible coal use across the value chain, including advanced mining and combustion technologies. The alliance seeks to ensure that coal contributes to economic growth, environmental progress, and energy security alongside renewable resources. FutureCoal urges institutions to be bold, informed, and united in ensuring coal's responsible and effective use for the global community.
Beyond the Headlines
The advocacy for coal funding highlights the ongoing debate over energy transition strategies. While renewables are often prioritized, FutureCoal's campaign underscores the need for a balanced approach that includes coal as part of a pragmatic and inclusive energy transition. The call for equitable funding reflects broader discussions on how to achieve sustainable economic growth while addressing environmental concerns.
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