Statement from Greenpeace Africa on The World Bank's Proposed $3.75 billion loan to Eskom

Press release - March 31, 2010
The World Bank board is expected to make a final decision on a proposed loan to Eskom in April 2010. The loan application consists of $260 million for renewable energy (100 MW wind and 100 MW concentrated solar power projects), $485 million for coal transportation and power plant efficiency and the remaining $3.05 billion is ear-marked for the 4 800 MW Medupi coal-fired power station.

Greenpeace Africa firmly believes that the World Bank should not be financing coal in South Africa, or any other country, particularly in light of the Bank’s stated policy position on climate change and sustainable development. Instead, the Bank should be financing large-scale renewable energy to help facilitate green development pathways in emerging economies like South Africa. The World Bank must change the kinds of projects it finances if it is to play any kind of meaningful role in assisting carbon-intensive countries like South Africa quit their dependency on coal and help avoid catastrophic climate change. It is not enough for the Bank to have policies like its Development and Climate Change Strategic Framework, which aims to support sustainable development and poverty reduction within the context of climate change, the time has come to actually act on them.

Greenpeace urges the South African government to embrace an Energy [R]evolution by using financing from institutions like the World Bank to invest in renewable sources of energy, which would save billions of rands, create green jobs and maintain sustainable economic development without fuelling catastrophic climate change.

 

Contact:

Fiona Musana, Communications Director, Tel: +27795129381

Melita Steele, Climate & Energy Campaigner, Tel: +27725608703