WASHINGTON, March 4, 2015 /PRNewswire-USNewswire/ -- Climate
change mitigation concerns have largely defined the Obama
Administration's policy on international coal plant financing.
These restrictions are limiting much-needed funds for providing
access to affordable and reliable energy in developing countries,
according to a new special report by the American Council for
Capital Formation Center for Policy Research (ACCF CPR).
In U.S. Coal Plant Financing Policy: A Threat To Long-Term
U.S. Interests In The Developing World, ACCF Executive Vice
President George David Banks notes
that China and other international
competitors – using less efficient, higher emitting coal
technologies – are stepping up to fill the gap left behind by
the United States and others to
fund power generation in developing nations.
"The developing world is seeking financial assistance from
the United States and other
developed economies to provide basic electricity access, which is
indispensable to economic growth and improvements in environmental
quality and health care," Banks said. "Unfortunately, U.S.
economic development policy is largely shaped by climate goals
instead of poverty eradication. Because of this position,
poor countries increasingly view the
United States as being insensitive to their needs and far
removed from reality."
Over 1.3 billion people remain without electricity (about 20
percent of the global population) —the majority of which are
located in Sub-Saharan Africa and developing Asia, particularly in rural areas. To
address this issue by 2030, the IEA and OECD have determined that
roughly $1 trillion is required for
investments in on-grid, mini-grid and off-grid solutions. Of the
on-grid power generation, the IEA and OECD estimate that over 60
percent would be delivered using fossil fuels, predominantly
coal.
The United States, however, is
pushing stringent conditions that would limit public financing of
coal plants to when there are no other economically feasible
alternatives or for facilities deploying carbon capture and storage
(CCS), which is not even commercially available.
"As a nation, we should take a more practical approach to coal
plant financing in the developing world and use an efficiency-based
standard for emissions control," Banks said. "It's in our
interest to deploy affordable and reliable generation that can
attract investment in manufacturing and create jobs. Economic
growth is essential to political stability in poor countries."
Simultaneous with the release of the ACCF study, House
Appropriations Committee Chairman Hal
Rogers (R-KY) and more than two-dozen U.S. House members
issued a letter to President Obama outlining their concerns over
the long-term implications of federal policies toward coal
financing and urging the White House to reverse its position.
"As the United States and other global leaders have
demonstrated, access to affordable and reliable energy is critical
to the development and health of a nation's economy. Coal-fired
power has demonstrated a proven capability to meet both residential
and industrial energy demands while expanding access to healthcare,
utilities and infrastructure in developing nations. Any efforts to
prevent such countries from utilizing the full range of energy
sources needed to reach their goals would deny them a critical
opportunity that has benefitted so many leading nations throughout
history," Rogers and the members stated.
Full congressional letter:
http://halrogers.house.gov/uploadedfiles/potus_-_oecd_coal_financing_letter_final.pdf.
Special Report: U.S. Coal Plant Financing Policy - A Threat To
Long-Term U.S. Interests In The Developing World:
http://accf.org/wp-content/uploads/2015/02/ACCF-CPR-Special-Report_Coal-Financing-FINAL.pdf
Founded in 1973, The American Council for Capital Formation
(www.accf.org) is a nonprofit, nonpartisan economic
policy organization dedicated to the advocacy of pro-growth tax,
energy, environmental, trade and economic policies that encourage
saving and investment.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/accf-special-report-finds-us-policy-on-international-coal-financing-harming-developing-countries-while-reducing-us-influence-300045469.html
SOURCE American Council for Capital Formation