Coal & Climate Change 2015 Report: Financing Coal
Turkey’s coal-based energy policies threaten G20 and UNFCCC discussions
Climate and Energy Consultant and founder of 350Ankara.org; Önder Algedik has published a new report called “Financing Coal: High Carbon Arithmetic of Turkey” in the year of G20 Presidency of Turkey and UNFCCC Paris talks. The report explores the Turkish coal sector including finance mechanisms that supports high carbon dynamics of the Turkish energy sector. According to the report, with current energy policies, Turkey will emit more greenhouse gas from electricity sector after completing coal power plants on the pipeline.
Writer of the report; Onder Algedik summarizes that “Although we are globally discussing abandoning coal in the eve of UNFCCC Paris and Turkey included fossil fuel subsidies and climate financing topics in G20 agenda, Turkey continues developing privileges for coal usage and planning to release more GHG emissions by usage of more domestic and global coal reserves”
Fossil Fuel usage increasing faster than energy demand;
In terms of fossil fuels, the report shows that fossil fuel usage is accelerating faster than energy demand in Turkey:
- Fossil fuel usage increased 152%, despite %128 total primary energy increase between 1990-2012.
- Turkey’s high carbon policies increased the share of fossil fuel from %81.5 in 1990 to %89.9 in 2012.
Usage of coal in the electricity sector is increasing and boosting GHC emissions of Turkey;
While the greenhouse gas emissions of Turkey has increased 133.4% between 1990-2012, the emission produced by the combustion of coal at thermal power plants has increased by 219%. Moreover; If Turkey commissions the plants included in the portfolio; the coal-sourced carbon dioxide emission, which was 21,5 million tons in 1990, 68,7 million tons in 2012, is expected to reach 200 million tons (which is almost half of Turkey’s 2012 GHG emissions).
Moreover, Turkey provides more incentives for coal investments and developing new coal finance mechanisms. As a result; crediting coal investments are increasing and boosting GHC emissions of the country. The report concludes that up to now; national banks provided 4,3 Billon dollar credit to 4.7 GW of coal power plants by securing investment and supporting policies. These credits will be increased by the realization of 20 GW of the coal power plant.
Carbon Leakage through Coal!
The report shows that Turkey’s energy policies based on coal lead the extraction of more domestic and some global coal reserves.
- Between 1990 and 2012, Turkey’s domestic coal usage doubled while coal import increased 5 times.
- If the current coal plans are realized, Every 3 MW of 4 MW new capacities will use exported coal in Turkey.
Current data shows that; alongside the extraction of national coal reserves, Turkey is becoming an address of carbon leakage day by day through imported coal. Coal import from South Africa, Australia, USA, China and Canada, and mainly Russia has been increased drastically and will increase with current coal-based energy policies.
The full version of the report can be downloaded through this link.