Environmental groups are chastising South Africa’s claims that it will lower its carbon emissions by 34% by 2020 which seemed to propel the country to the limelight at the UN Climate Change discussions in Copenhagen. However, with the recently approved monetary infusion of $3.75 billion from the World Bank, state-owned utility Eskom plans more coal-fired plants which would negate the willingness to lower emissions. Eskom said some of the cash would be used to finance alternative energy projects including wind and solar power, while around half of the infusion could go towards improving coal transportation.
"It is not a pledge," South Africa’s top negotiator Joanne Yawitch told TerraViva. "The reduction depends on whether developed countries put a fair and equitable deal on the table in Copenhagen, particularly where it comes to financial support for mitigation measures." However, if that was the case, why didn’t South Africa state that in its initial announcement?
Eskom, responsible for 40% of the country’s emissions, will use the capital gained from the World Bank with an additional leveraged $2.5 billion from the African Development Bank to construct the Kusile and Medupi power plants that will become the world’s third and fourth largest coal-fired plants.
"The $5 billion loan is the largest the World Bank has ever given to any African country," said Sisiwe Khanyile from South African environmental justice group Groundwork. "It’s also more than double of what the World Bank has globally allocated for renewable energy funding," she argues. "This raises the question of how serious South Africa really is with moving forward on green technology."
Of South Africa’s generating capacity of 44,000 MW, some 37,000 MW is delivered by coal fired plants. Only around 2,000 MW comes from renewable energy sources. Just two days after South Africa’s announcement to start slowing emissions growth Eskom signed a 60-million ton coal supply deal with mining group Xstrata.
Khanyile added, "However there is no convincing evidence that Eskom is leaning towards renewables. At best Eskom’s plans show a renewable accounting for only two percent of the generating capacity by 2020."