Coal represents 44% of CO2 emissions and 40% of installed power generation capacity globally. To reach global climate goals, all unabated coal would have to be phased out by 2040. It is crucial to phase out coal use as quickly as possible, both to limit warming to 1.5°C and to avoid the health damage caused by air pollution. However, in practice the shift away from coal presents the power sector with a transition of unprecedented speed.
The global community needs new solutions to address the social and economic complexities of the coal transition while responding to the urgency of the climate challenge. One set of solutions currently under development are innovative financial mechanisms designed to support the transition from coal to clean energy.
CATA seeks to support the transition by designing asset-specific financial mechanisms that can help create the business case for an urgent transition from coal to clean energy or other clean business models. It does this by providing funded technical assistance (TA) to asset owners, governments and financiers to help them understand how they can transition a single asset or a fleet.”