The Global Environment Facility (GEF) - the world's biggest fund for environmental projects – is managed by the World Bank and United Nations agencies. This week, it announced that it would give $45.5 million USD to revamp some of India’s oldest and dirtiest coal-fired power plants.

According to its website, the GEF

…helps developing countries fund projects and programs that protect the global environment. GEF grants support projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants.

Then what’s up with the coal money?

Monique Barbut, GEF’s CEO, said the debate about whether to fund coal plants has been going on for awhile. But in the end, they had to recognize India’s limitations.

We cannot cover the planet with wind turbines…We do argue that renewable energy is the best … but at the same time India is clearly not going to develop for the next 20 years without coal. We have to cooperate with that.

India burns more coal than any other nation on the planet, so cleaning up the coal plants and making them more efficient is believed to be the fastest, most direct way for India to reduce its global warming pollution.

So what does $45.5 million get you? Along with another $300 million USD from the World Bank and Indian commercial banks, the bill should cover upgrading about 1 percent of the country’s total coal plant capacity in the next few years.

Reuters, via Environmental Health News
Global Environment Facility