The Group of Seven (G7) rich countries reached an agreement to end state financing for coal power plants by end of 2021, according to a communique from a meeting of the Group's environment ministers.

"We stress that international investments in unabated coal must stop now and commit to take concrete steps towards an absolute end to new direct government support for unabated international thermal coal power generation by the end of 2021, including through Official Development Assistance, export finance, investment, and financial and trade promotion support," the document said.

Coal is regarded as unabated when it is burned for power or heat without using technology to capture the resulting emissions, a system which is yet to be commonly employed in power generation.

The agreement was reached against a backdrop of positioning international financing with the goals under the Paris Agreement to fight climate change, by reaching net zero greenhouse gas emissions no later than 2050, including significant reductions this decade.

For that target to be achieved, power generation must give way to renewable electricity sources, like solar and wind.

According to the document, the G7 countries will review and phase out new direct government support for carbon intensive fossil energy, except in limited circumstances at the discretion of each country.

The document also showed that the G7 requested other major economies to adopt the commitments.

The phase-out of payments includes official development aid, export finance investments and financial and trade promotion support.

Earlier this week, the International Energy Agency (IEA) criticised new oil, gas and coal projects.

(With input from Reuters)