International coal financing is largely channelled to a small group of countries with the world’s highest absolute gaps in access to electricity, says a study from not-for-profit Sustainable Energy for All (SEforALL). It suggests renewable energy financing unfairly favours the West.

Day labourers unload coal from a cargo ship in Gabtoli, Dhaka, the capital of Bangladesh, in February 2021. (Photo by Ahmed Salahuddin/Nur via Getty Images)

As of 2021, new coal-fired power plants are under active development in eight out of 18 countries with big gaps in electricity access: Bangladesh, India, Madagascar, Malawi, Mozambique, Niger, Pakistan and Tanzania.

Across all 18 countries, financial commitments worth $54bn were channelled towards coal projects between 2013 and 2019. Of this, the biggest chunk – $19bn – came from international public finance.

Conversely, international public finance only made up $23bn out of $103bn channelled towards renewables, less than half the value of financial flows from private domestic finance.

Financial institutions based in China account for 40% of the $42bn committed to finance 12.7GW of coal-fired power plants in India, Pakistan, Bangladesh, Kenya and Malawi.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Privately held institutions based in the US account for 58% of all investment in the coal industry.