Scott Morris is quoted in a Climate Wire article on the World Bank's new energy policy.
The World Bank board of directors yesterday embraced strict limitations on financing new coal plants, effectively closing the door on an issue that has vexed the global development lender for years as it struggled to balance its mission of eradicating poverty with a growing concern for climate change.
The new policy endorsed by the United States, China, India and others instructs the World Bank Group to provide financial support for new coal projects "only in rare circumstances." That includes cases in which a country has "no feasible alternatives to coal" for meeting basic energy needs and no other financing options available. It's a stark departure from its current guidelines, which say coal will continue to play an "important role" in the primary energy mix of developing countries.
Scott Morris, a visiting fellow at the Center for Global Development and former deputy assistant secretary for development finance and debt at the U.S. Treasury Department under Obama, called the decision "a political success."
He noted that Zoellick, frustrated at seeing the former policy blocked, imposed a de facto ban on coal, and with the exception of a looming vote on a 480-megawatt plant in Kosovo, the bank has effectively restricted coal even without a formal policy. While some over the years have argued that the bank could continue operating that way, Morris said it was untenable.
"The bank has to be guided by rules and strategy, so in that sense, it's important for them to move forward," he said. "The coal debate was really a distraction from the positive agenda the bank could have on climate."