African Development Bank(AfDB) has said it has completely halted investments in any new coal projects, throwing this energy sub-sector into disarray.
This disclosure was made recently by Dr Kevin Kariuki during a virtual press conference hosted by AfDB on 20th April 2022, ahead of the financial institution’s annual meeting to be held in Accra, Ghana, from May 23-27, 2022.
“However, when it comes to gas, we understand that Africa needs to address its energy poverty, and to look at energy poverty, we need to look at all non-coal sources of energy,” said Kariuki.
He added that as long as a gas project has been included in a Country as part of Nationally Determined Contributions, the Bank will invest in those gas power plants.
Africa has only four coal power plants in construction, in South Africa and Zimbabwe, and only three plants have been operational since 2015.
While the globe is shifting to the ‘No New Coal’ agenda, countries like Botswana, Malawi, Mozambique, South Africa and Zimbabwe are still keen on developing their coal power plants.
These African states are in addition to 21 other countries globally that have more than one coal plant on the drawing board.
The five African countries, which were seeking financial support from China, have their plans hanging in the balance after China indicated recently that it will halt funding for all overseas coal projects.
Meanwhile, Kenya’s proposed Lamu Coal Power Station, which was to produce 1,050 MW, remains suspended.
This US $2 billion coal plant was designed as part of the link to the Lamu Port–South Sudan and Ethiopia Transport (LAPSSET) Corridor.
After intense lobbying and resistance from local communities and civil society, the Kenyan courts in 2019 cancelled the project’s environmental license. After that, the Industrial and Commercial Bank of China pulled out of the project.
The theme for the AfDB 2022 meeting in Accra, Ghana is-Achieving Climate Resilience and a Just Energy Transition for Africa.
This year marks the 57th AfDB Annual Meeting of the Bank Group’s Board of Governors and the 48th Meeting of the African Development Fund (ADF), the concessional arm of the Bank Group.
The Bank will launch the 2022 report for the African Development Bank’s African Economic Outlook during the annual meeting.
This is the first meeting in two years to be held in person since the COVID-19 pandemic hit Africa. The previous two meetings have been held virtually.
This year, however, will be both physical, which will take place at the Accra International Conference Centre, and online meetings as there are still restrictions on the number of people attending public gatherings.
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