Page 9 - AfrElec Week 49

AfrElec GROWTH AfrElec

much of the past decade. developed nations, down from 25% in 2018 and
Still, thanks to growth and national commit- 29% in 2015.
ment, it remains a land of enormous potential for Emerging markets’ installed capacity has
renewables. spiked 79% since 2010 but grew by just 14% in
Across emerging markets as a whole, coal wealthier nations over that time.
still accounts for 44% of all power produced in Coal led the jump in developing markets with
emerging markets. 691 GW of net capacity added in 2010-2019, up
Hydro and gas follow as the second and 66% over the period. In developed countries,
third-largest technologies, each responsible for coal capacity fell by 115 GW, or 18.6%, over the
19% of electricity generation. decade.™
Coal still meets 21% of power demand in

COAL

Standard Bank tightens coal financing

rules but refuses to divest entirely

SOUTH AFRICA SOUTH Africa’s Standard Bank is to maintain our purpose of driving sustainable development
its funding of coal projects, but has tightened its across the continent,” says Wendy Dobson, head
investment criteria. of Group Corporate Citizenship at Standard
The bank said this week that it would not cut Bank.
funding entirely, despite pressure from divest- “We continue to engage with our clients to
ment activists. find solutions that enable them to understand
The bank has released a new Fossil Fuels and manage their climate risks, adopt good ESG
Financing Policy, which allows the bank to risk practices and grow their businesses sustain-
finance thermal coal-mining projects, but only ably,” says Kenny Fihla, chief executive: Corpo-
if they comply with the International Financial rate and Investment Banking at Standard Bank
Corporation’s (IFC) performance standards, the Group.
World Bank’s environmental, health and safety “If we were to stop completely to fund any
guidelines and the Equator Principles. coal-mining related activity, we could as well
In the case of oil and gas activities, the bank say we are stopping 80% of Africa’s electricity
will only provide financial products and services generation and we do not think that would be a
to clients that commit to minimising or reduc- responsible thing to do,” said Fihla.
ing their greenhouse gas (GHG) emissions, and In South Africa more than 80% of electricity
that have implemented oil spill preparedness and is generated through coal and lenders have not
response plans, for instance. kept pace with international peers on ending
Among other requirements, the project funding for it.
owner would also need to provide updates on its In 2019, Standard Bank pledged to restrict its
performance related to water use, waste genera- financing of new coal-fired power plants accord-
tion, energy consumption and GHG emissions. ing to their size, emissions intensity and the host
Climate activists have been pressuring Stand- country’s level of development.
ard Bank – Africa’s largest bank by assets – to The lender would only fund “sub-critical”
curb its lending to the coal, oil and gas sectors, coal-fired power plants – which have the highest
which together accounted for around 4% of its level of emissions – in countries in the Interna-
lending and commitments in December 2019. tional Development Association (IDA) group of
“The publication of our Fossil Fuels Financ- poorest nations, and if they are smaller than 300
ing Policy is another important step forward for MW.
Standard Bank. We are fully aware that climate “We can’t switch off the funding to these
change is a material risk to our ability to gener- activities overnight, that would also cause a lot
ate value for all stakeholders over time, and to of harm,” said Dobson.™

Week 49 10•December•2020 www. NEWSBASE .com P9