Coal plants across the world are not being decommissioned at a fast enough pace to meet climate goals, according to data agency Global Energy Monitor (GEM).
Despite the need to phase out coal power by 2040 to meet Paris Agreement climate goals of limiting global warming to 1.5C, planned use of the fossil fuel grew in 2022.
“The pace of retirements needs to move four and half times faster – and new coal plants must stop being built – in order to put the world on track,” GEM said.
Excluding China, global coal capacity shrunk, albeit at a slower pace than previously, with the Ukraine war prompting European countries to pause power station retirements.
GEM predicted countries would ramp up the rate of retirements in the coming years though, particularly in Europe where just 2.2GW of coal power capacity was closed compared to 14.6GW in 2021, in response to the war.
537GW worth of coal power capacity was under development last year, up 12% on 2021, as China laid out plans to build 126GW worth of the fossil fuel burning plants.
“At this rate, the transition away from existing and new coal isn’t happening fast enough,” report author Flora Champenois commented.
“Outside of China, the response to the energy crisis was dominated by investment in clean energy. However, that progress urgently needs to be accelerated.”
Drax Group (LSE:DRX) and EDF have ruled out keeping the UK’s back-up coal plants open for this coming winter, leaving just Uniper-operated Ratcliffe power station in the country, which is due to close in September 2024.
Uniper, which has been scrutinised over its use of coal, saw its shares fall 7% to €3.72 following the news.
Coal miners Teck Resources, Rio Tinto and Thungela also fell 2.6%, 0.3%, and 0.8% respectively following the report's release on Wednesday.