Page 11 - AfrElec Week 36 2021

AfrElec NEWS IN BRIEF AfrElec

CLIMATE CHANGE Akinkugbe-Filani, in her presentation, creation, and we need to harness the energy
emphasized the role that an adapted approach sector to work for local development.”
The African Energy Chamber to mitigation will play in ensuring Africa’s Introducing a new and valuable point to
energy development.
the overall discussion, Akinkugbe-Filani
(AEC) emphasises Africa’s utilization a key topic in the discussion, promoted the continent’s innovation,
With the value of multiple energy source
emphasizing that Africa is ready to take their
position on climate change and by emphasizing the continent’s young seat at the table.
and fast-growing population, Akinkugbe-
AEC
mitigation at the Opec Filani suggested that “Africa has a right to
consume more electricity” and should be
The Organization of Petroleum Exporting allowed to develop its resources to fulfil COAL
Countries (OPEC) held the first ever virtual increasing energy demand. Specifically,
Ministerial Roundtable Discussion on Energy, Akinkugbe-Filani noted that “what all Vale posts $264mn interim
Climate and Sustainable Development African countries have in common is their
on Monday 6 September 2021, in which low levels of greenhouse gas emissions.” loss
ministers, senior officials, high-level decision Therefore, the continent should not suffer in
and policymakers and industry experts led the name of climate change, but should be Vale has reported a loss of $264mn on its coal
a strong discussion on the key issues and allowed to develop their own strategies, in division in the second quarter of 2021 in part
opportunities surrounding global climate line with common global objectives. Notably, due to recording impairments of $432mn on
change mitigation. As the African Energy Akinkugbe-Filani emphasized the role that its Mozambique coal operations.
Chamber (AEC) (www.EnergyChamber.org) natural gas will play in Africa, and that “A The Brazilian mining company is seeking
representative, Rolake Akinkugbe-Filani, short term priority should be how to harness to finalise its purchase of Mitsui’s 15 per cent
CCO – Africa, Mixta Africa and Advisory these resources in a sustainable way. The gas stake in both the Moatize mine and its 50 per
Board Member of the AEC, provided valuable sector is a key driver of this dynamic. We are cent share in the 912 kilometre Nacala coal
insight about Africa’s position on the global not calling for a zero-sum approach, multiple railway.
climate change agenda. sources can exist in Africa, with many Vale has negotiated to buy each of the
The need for a collaborative, multilateral countries already utilizing natural gas.” stakes for $1 each. At the start of 2021 Vale
approach to climate change mitigation Additionally, with the objective to make said it was aiming to increase production from
worldwide became a recurring theme at the energy poverty history by 2030, Akinkugbe- Moatize to 22mn tonnes of metallurgical coal
OPEC-led roundtable, with participants Filani insisted that job creation and local a year in the hope of attracting offers for the
emphasizing the need for developing capacity building must comprise top of sale of its Mozambique coal division.
countries to adopt their own strategies in the climate change agenda in developing Vale is now aiming to increase production
a move to protect the environment. Unlike countries. According to Akinkugbe-Filani, to just 15mn tonnes per year with executives
developed countries, which boast energy “whether Africa embarks on a rapid change telling analysts only 55% of current
security and accessibility, developing countries to renewables or continues with hydrocarbon production is metallurgical coal.
continue to suffer from lack of development development, African jobs must come first. VALE
and high energy poverty rates. Accordingly, The growth of the industry leads to job
ESKOM

Masondo raises $10bn
South Africa debt

forgiveness

David Masondo, South Africa’s deputy finance
minister, had suggested that investors forgive
ZAR146bn ($10.2bn) of sovereign debt in
exchange for Eskom meeting climate targets,
Bloomberg reported.
In order to transition from coal to
renewables Eskom will need to borrow
ZAR400bn ($28.1bn), equal to its current
debt, and will need a “complementary
transaction” to achieve that, he said.
Under Masondo’s proposal, which he
termed a debt-for-climate-swap, a portion of
national debt, which he suggested could be
ZARR146bn ($10.2bn), would be forgiven by
new or existing creditors. In exchange South
Africa would pledge an equivalent amount as

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