In order to fulfil international climate targets, across the globe coal used in the energy sector will need to be phased out until mid-century, at the latest. This is at odds with current investment patterns. Many countries, particularly developing and newly-industrializing ones, continue to invest in coal fired power plants. Based on research conducted at the Mercator Institute of Climate Change and Global Commons, this talk will give an overview of reasons for current coal investments and why a phase out of coal is often difficult and needs to be designed carefully.