The African Development Bank has declined to fund the Lamu Coal project, and any future coal projects.
The decision follows an environmental impact assessment, which saw the National Environmental Tribunal stop the project in June. The lender follows steps by other development partners who have shunned coal investments as concerns for clean energy grow globally.
SEE ALSO:
- Coal not a Priority for Africa’s Ambitious Plans in Renewable Energy, AfDB
- Construction of Lamu Coal Plant halted
Senior AfDB officials told Reuters that the bank takes a particular concern for the environment, and is specifically focusing on renewable energy sources.
Additionally, AfDB president Akinwumu argues that investing in coal projects could result in “stranded assets” on AfDB’s portfolio.
“(AfDB) did not move forward with the Lamu Coal transaction and had no plans to do so in the future,” said Wale Shonibare, AfDB acting VP.
The bank’s move threatens the 1,050 MW project, which earlier planned to start in 2015. The lender has been a significant source of finance for similar projects on the continent.
For instance, Reuters notes that AfDB has invested over $1.65 billion to South Africa’s Medupi coal plant in the past decade. Additionally, the lender gave Senegal approximately $ 5.5 million to fund the Sendou coal plant.
Investors and policymakers continue to show concern over the Lamu coal project after a court blocked the plan for the second time in 2018.
