Risky Coal and the Cost of Inaction

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. Seems the federal government is considering the risks, 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 – 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, Tufts University, and McKinsey & Company).