The Many Roles of Development Finance Institutions in the Early Phase-down of Coal Plants

While many development finance institutions (DFIs) have pledged to halt public finance into new coal-based electricity generation, they have yet to focus on supporting the decarbonization of existing coal plants. Indeed, apart from some pilot initiatives, the direct engagement of DFIs on coal plant decarbonization has been limited.
A new report by the Boston University Global Development Policy Center argues that DFIs are uniquely poised to play a key role in the early phase-down of coal plants given their distinct mandate to prioritize development and provide public goods. Furthermore, the report authors argue that the ability of DFIs to supply concessional finance and tolerate high levels of risk makes them well equipped to play a role in phasing down coal-based power generation.
How can DFIs best assist countries in transitioning away from coal-based power generation? What factors should guide the design of new phase-down initiatives? How can DFIs help governments to retire coal plants effectively and efficiently while ensuring a just energy transition and economic development?
On Thursday, April 11, 2024, the Boston University Global Development Policy Center hosted a webinar discussion on the role of DFIs in the early phase-down of coal plants.
Speakers:
• Niccolò Manych, Post-doctoral Research Fellow, Boston University Global Development Policy Center
• Tsitsi Musasike, Professor of Global Development Policy, Frederick S. Pardee School of Global Studies; Core Faculty Member, Boston University Global Development Policy Center
• Joan Miquel Carrillo, Blended Finance Lead Investment Officer, Financial Products and Services Division, IDB Invest
• Jiaqi Liu, Senior Academic Researcher, Global China Initiative, Boston University Global Development Policy Center
• Rebecca Ray (moderator), Senior Academic Researcher, Global China Initiative, Boston University Global Development Policy Center