Articles

New coal-fired power enjoys support among bankers in Germany and Asia

In the northern Greek city of Ptolemaida, a new 660-megawatt power plant that burns lignite, a plentiful soft brown coal, is scheduled to be built by 2020. The European Investment Bank has withdrawn funding from the project because of its high CO2 emissions and other pollutants, but the German government-owned development bank KfW, which has a large portfolio of green investments in Germany, is planning to provide half the money needed, roughly €800 million ($888 million) in loan guarantees. The deal has come at considerable expense to Germany's reputation as a climate leader. By funding the plant in Ptolemaida, KfW is helping to block the expansion of renewable energy, such as solar and wind power, while cementing coal-fired power into Greece's grid for decades.