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Communication to the OECD’s Arrangement on efforts to expand the Coal-Fired Electricity Generation Sector - complaint

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Communication to the OECD’s Arrangement on efforts to expand the Coal-Fired Electricity Generation Sector - reply

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On October 20, 2021, the UN Special Procedure on hazardous wastes, Mr. Orellana, and human rights and the environment, Mr. Boyd, issued a communication Participants to the OECD’s Arrangement on Officially Supported Credit Arrangement on their efforts to expand the Coal-Fired Electricity Generation Sector Understanding (currently, Australia, Canada, the European Union, Japan, Korea, New Zealand, Norway, Switzerland, Turkey, the United Kingdom, and the United States). They note that mining and combustion of thermal coal make an outsized contribution to the aggravation and causation of the global climate crisis, with devasting effects on the ‘effective enjoyment of rights to life, health, and a healthy environment’. 

The communication notes that according to recent reports from the IPCC, UNEP, IEA, and UNICEF, the negative effects of coal mining and combustion, including on children’s rights, are overwhelmingly clear and worrying. To achieve net zero emissions by 2050, ‘all countries need to immediately stop construction of new coal power plants, phase them out completely by 2030 in advanced communities and close all of them by 2040 globally’ to meet the Paris temperature targets. Amongst the concerns cited are that coal-fired electricity causes about 35% of total methane emissions from all fossil fuel related sources, an extremely potent greenhouse gas (GHG). 

In follow up to G7 and other commitments, the Special procedures recommend that the Participants to the OECD Coal-Fired Electricity Generation Sector Understanding expand their commitment by agreeing to immediately (a) stop building new coal-fired power plants, (b) immediately terminate subsidies and export financing and guarantees for any and all actions related to coal-fired plants and exploration, extraction and production of thermal coal and associated infrastructure, without exceptions or exemptions;  (c) require existing coal-fired plants to be closed by 2030 in high-income nations and by 2040 in middle-income nations.

The group replied on December 17, 2021, that they agreed in a meeting on October 22, 2021, to end official export credit support and to tie aid support for unabated coal-fired power plants2. This ban came into force on 1 November 2021 and will be reflected in the next version of the group’s Arrangement on Officially Supported Export Credits, to be issued in early 2022. They also noted that recommendations on stopping construction of new plants, phasing out, and subsidies are not issues ‘that might be addressed or resolved by the groups working on export credits at the OECD.’ There are, however, further plans to improve due diligence screening and assessments of project applications for potential severe project-related human rights impacts in further amendments of other instruments, and the human rights experts are welcomed as stakeholders in the consultation to provide advice on how responses to potential human rights impacts could be enhanced.

Communication to the OECD’s Arrangement on efforts to expand the Coal-Fired Electricity Generation Sector

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

This sector involves the wholesale and retail selling of goods.

Terrestrial means "of the earth" and relates to the risks to ecological system that includes all living organisms and their interactions within land-based environments, such as forests, grasslands, and deserts.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

A drought is an extended period of unusually dry weather marked by a significant and sustained lack of precipitation, falling below a specific threshold over a large area for more than a month

This sector provides medical services, manufactures medical equipment, and develops pharmaceuticals to maintain and improve health.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Actions to adapt human health, healthcare systems and well-being to climate change.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

Air pollution involves harmful contaminants in the air, affecting both indoor and outdoor environments. It can lead to health issues like respiratory diseases and heart problems, and climate impacts such as global warming. Pollutants can damage plants, trees, habitats, and water bodies like rivers and lakes.

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Actions or measures to adapt freshwater systems to climate change.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

This sector involves managing waste treatment, sanitation, pollution control and environmental cleanup.

Any substance with chemical properties that can cause physical harm to people or damage the environment, including ammonia, carbon monoxide, phosphine, chlorine, arsenic, cadmium, mercury, pesticides, dioxins, microplastics, benzene, asbestos, aflatoxins, fluoride, methanol, and toxins from marine sources.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

Risks to the ecosystem health of the marine environment, including ocean warming, ocean acidification, and ocean deoxygenation, harming biodiversity, species health, ecosystem services, and coastal community livelihoods.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector involves the distribution, treatment, and conservation of water resources.

Actions or measures to adapt freshwater, coastal and marine systems to climate change.

A potent, short-lived greehouse gas, largely released from livestock, fossil fuel extraction and waste management.

Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Communication to the OECD’s Arrangement on efforts to expand the Coal-Fired Electricity Generation Sector - complaint

Target

Policy instrument

Risk

Impacted group

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance