World Bank Funding for Coal Power Stations Increases

The environmental impact of coal fired plants does not seem to be deterring the World Bank from funding coal power stations around the world.

The funding to such plants has risen 40 times in the last five years while renewable energy projects have hardly seen any rise.

This highly carbon intensive form of producing energy has been growing around the world despite international commitments to bring down carbon emissions. The state of the global climate and the policies for climate change do not seem to be a deterrent to the economic necessity of having cheap electrical power.

The World Bank revealed that a quarter of all funding for energy projects, totalling to US$3.4 billion was spent in the year up until June 2010 to help build new coal fired power stations worldwide including a controversial plant in Medupi, South Africa.

This is seen as damaging not only to the climate but also to the long term attempts being sought by environmental groups to cut carbon emissions and that of other greenhouse gases. Roger Morier a World Bank spokesperson said that the projects usually dealt with exceptional circumstances where countries have few or no prospects of other energy sources.