# Risky Coal and the Cost of Inaction

*Published:* 2008-03-05
*Author:* Sheryl Canter

![Sheryl Canter](https://blogs.edf.org/climate411/wp-content/blogs.dir/7/files/2008/02/sheryl_canter.jpg)*This post is by Sheryl Canter, an Online Writer and Editorial Manager at the Environmental Defense Fund.*

Here are a couple of interesting news stories I came across this week:

**Risks in Financing Coal.** Last month, we posted about how banks are [considering the risks in financing coal plants](https://blogs.edf.org/climate411/2008/02/04/banks_and_coal/). Seems the [federal government is considering the risks](http://www.businessweek.com/ap/financialnews/D8V72P780.htm), too. *BusinessWeek* reports that the federal government is "suspending a major loan program for coal-fired power plants in rural communities, saying the uncertainties of climate change and rising construction costs make the loans too risky."

**Act Now or Pay More Later.** The Organization for Economic Co-operation and Development (OECD) has issued a new report on [how much it will cost to fix the environment](http://www.oecd.org/document/3/0,3343,en_2649_37465_40190275_1_1_1_37465,00.html) – including (but not limited to) such problems as global warming. According to the Associated Press, the report says, "We need forward-looking policies today to avoid high costs of inaction or delayed action over the longer term." This agrees with other recent studies on the subject (see the [University of Maryland](http://www.cier.umd.edu/climateadaptation/index.html), [Tufts University](http://www.gdae.org/FloridaClimate.html), and [McKinsey & Company](http://www.mckinsey.com/clientservice/ccsi/greenhousegas.asp)).