This is good news. Developing nations are a lot less likely to pursue alternative-energy sources if major funders like China and Japan continue pushing coal-fired plants. 

China is notably hypocritical in cracking down on its air pollution domestically while at the same time encouraging other nations to burn lots of coal—the dirtiest of all fossil fuels from global warming and air-quality perspectives.

Last week’s G7 agreement to stop financing coal is a big win for the global ecology but still not enough to protect us all from more than 1.5°C of warming.

Australia’s own public meteorology data shows we’ve already passed that limit and the two biggest coal producers and consumers are not party to the G7 agreement. China, for example. produces 47.6 per cent and consumes 51.7 per cent  of the world’s coal.

Among climate denialists, much is made of Australia’s small contribution to these figures, but the fact remains that Australia is one of the highest per capita consumers, much bigger than China, and, even worse, the fourth biggest producer after China, Indonesia and the United States.

Australia produces 7.8 per cent of the world’s coal, so our economy floats on waves of dirty energy, has done for decades.

If the rest of the world consumed and produced coal like Australians, estimates suggest a completely unliveable planet within 80 years.

Last week the G7 agreed to cease financing the production of coal in other countries as another important win for the Paris Agreement.

This is important because another way in which nations can profit from dirty energy, even if they had low production and consumption levels, is through financing new coal stations. Japan, for example, has some of the lowest carbon emissions per capita given its level of development, but also makes money from financing and profiting from other countries’ coal stations.

China, South Korea and Japan are the biggest investors in dirty energy outside of their own borders and this was the major sticking point at the G7 last week. Japan feared that if it were to cease investments in developing countries, places like India, South Korea and China would step in with dirtier, less regulated builds. As always the devil is in the detail.  The G7 capitulated on a clause allowing exceptional circumstances, reminiscent of those enjoyed by Australia over the years.

The European Union (EU) has thrown down the challenge, they are the heroes in this story, followed by the prodigal United States. The question is whether China will come to the party at COP 26. Either way, Australia is still in no position to judge.

The fact remains that 80 per cent of nations are still living in the energy dark ages, reflected in their standard of living, while some, like Australia and the United States, continue to live like kings and others, like China, are rising aspirants.

In a world of inequity, the greatest inequity will eventually hit the world’s living children, no matter which nation they hail from. Their only chance is hardened action on coal and other dirty fuels within this decade.

The ideal would be for wealthier nations, including Australia and indeed China, to help poorer countries build clean energy sources of their own, much less continue to profit from coal themselves. The EU, meanwhile, should be applauded.

This announcement from the G7 is an excellent development. It is a significant step towards phasing out coal and reaching net zero by 2050. As we know, the financial incentives for renewables are increasingly making fossil fuels obsolete. However, we still need international diplomacy momentum and sound government policy to work in concert with the financial sector to achieve the rapid progress we need.

Coal production and use is a major source of carbon emissions and a significant contributor to global climate change. While this end to support for overseas coal development by the G7 is clearly a step in the right direction, far more rapid decarbonisation is necessary if we are to have a chance of meeting the Paris Agreement target of keeping global warming well below 2°C above pre-industrial levels. The effects of global warming through increasing heatwaves, sea ice loss, sea level rise, and coral bleaching and death, among many other impacts, are already clear to see. It is therefore imperative that global warming is kept to as low a level as possible by taking further steps to drastically reduce carbon emissions.

The G7 announcement that it will end public financing for overseas coal projects will make it very difficult for any country now to fund new coal plants. 

The restrictions come on top of a previous commitment from OECD countries in 2015, including Australia, to limit finance for coal.

This is good news for the climate given new coal plants are incompatible with global efforts to address climate change under the Paris Agreement.

It is also good news for taxpayers given that there is a real risk that any new coal projects could become stranded assets posing significant risks for affected countries.

This is absolutely the right decision and well overdue. We must move to science based policy underpinned by the need to limit warming to 1.5 degrees. This sends a strong signal that there should be no further investment in fossil fuel generation, be it coal, natural gas or oil derivatives.

There are far too many countries still planning coal and gas fired stations and this will help them make a decision to stop investing in infrastructure that is also likely to become stranded given new technologies.

Australia should follow suit and additionally commit no new gas fired plant to abatement trajectories consistent with 1.5 degrees.

Last week’s IEA Report on not investing any more in fossil fuels was a turning point in world history. Now we have the follow-on from the G7 in agreement. Australia is like a global shag on a rock as we cant bring ourselves to see that the end of all fossil fuels is now imminent. The response in the ALP to the weekend’s loss will now determine whether they sit on the rock with the dying shag, or recognise that they are a party for the future. Of course there are more jobs and wealth in moving on from fossil fuels and it’s time to make that the clarion call for all political parties in Australia.

The end of coal will impact some parts of Australia. This will require government investment in the development of new job creating export industries, particularly those based on renewable energy. It can be facilitated using short courses online, to quickly get displaced workers re-skilled.