Coal is increasingly unviable both financially and environmentally and is ceasing to make sense as an option for investors and governments. This third annual report in the Carbon Tracker’s Powering Down Coal series finds that investments in new renewables beat investments in new coal in all major markets when comparing the levelized cost of energy for both.
The report finds that around 80% of the operating global coal fleet could be replaced with new renewables with an immediate cost saving. By 2024, new renewables will be cheaper than coal in every major region, and by 2026 almost 100% of global coal capacity will be more expensive to run than building and operating new renewables.
Currently, five Asian countries - China, India, Viet Nam, Indonesia and Japan - are responsible for 80% of the world’s planned new coal plants and 75% of existing coal capacity. In these five countries, 92% of planned coal units will be uneconomic, even under business as usual, and up to $150 billion could be wasted. As such, the report calls on investors and policymakers including to cancel all new projects and that governments should use post-COVID stimulus as an opportunity to lay the foundations for a sustainable energy system.