“ICSC closes as OECD focuses on coal phase-out”

According to an article by E3G's Suzie Marshall, planned global coal plant capacity has fallen by almost two-thirds since the Paris Agreement was signed in 2015. New coal plant capacity openings by 2024 have fallen to a 20-year low, a stark indicator of the shift away from coal.

The economic superiority of renewable energy technologies is also noteworthy. By 2024, 91% of renewable energy projects were more cost-effective than new fossil fuel alternatives. According to BloombergNEF data, wind and solar energy production costs could fall even further by 22% to 49% by 2035.

According to the article, planned coal capacity in OECD and EU countries has shrunk significantly since 2015. Coal production in the OECD area has more than halved since its peak in 2007. Since 2010, 78 percent of existing capacity has either been decommissioned or is expected to be shut down by 2030.

For example, the UK closed its last coal power plant in 2024. Ireland became the 15th European country to phase out coal use by 2025. Finland closed its existing coal power plant in April 2025, leaving only spare capacity. Spain and Italy are among the countries planning to phase out coal within the year.

In line with the Paris Goals, OECD countries are expected to phase out coal energy entirely by 2030, while non-OECD countries are expected to achieve this goal by 2040. However, Australia, Japan, Poland, South Korea, and Turkey are among the OECD countries that are still not members of the Powering Past Coal Alliance (PPCA).

As Marshall emphasizes, the closure of the ICSC demonstrates the strategic and technological ineffectiveness of the “clean coal” argument.

Japan is planning another coal-fired power plant, a situation where coal still makes up 32 percent of its energy mix. This contradicts its commitment to largely decarbonize electricity generation by 2035.

The US is still the only country developing new coal plants, while coal projects have largely stalled across OECD and EU countries.

The article also highlights South Korea's steps toward a coal phaseout. President Lee Jae-myung has pledged to close all coal-fired power plants by 2040. According to the country's 2038 energy plan, the share of coal in electricity generation will be reduced to less than 10 percent, while renewable energy capacity will be increased to 121.9 GW.

This strategy is seen as critical for South Korea to both strengthen its climate leadership position and contribute to global carbon reduction targets during the COP30 process.

Turkey, however, continues to invest in coal as part of its energy security strategy. By 2025, coal will account for approximately 30 percent of Turkey's electricity generation. However, the rapid increase in renewable energy investments, particularly solar and wind projects, indicates that coal will become a less competitive option in the medium term. However, it is noteworthy that Turkey, unlike most OECD countries, has not yet announced a clear timetable for its coal phase-out. Experts emphasize that Turkey must also announce its coal phase-out plan to align with climate targets and increase international financing opportunities.