US, Britain Oppose World Bank Loan for Coal-Fired Plant in South Africa

Despite the development of coal-fired power on their own shores, the United States and Britain have threatened to withhold support for a $3.75 billion World Bank loan for a coal-fired power plant in South Africa.

According to a Reuters story, the loan is still likely to be approved next month, but the situation marks a new tension point in the debate between industrialized and developing nations over greenhouse gas emissions. 

South Africa is one of a handful of developing nations that has set emissions goals. The country expects its greenhouse gas emissions to peak between the years 2020 and 2025. 

$3 billion of the loan will go towards a 4,800-megawatts (MW) coal-fired power plant, which is expected to relieve energy shortages which have harmed South Africa’s economy in recent years. 

But US financial guidance to the World Bank calls for support of non-coal energy projects before coal-fired options are considered. 

Developing nations cry ‘foul’, because the US has yet to set its own plan for reducing emissions. 

Read the full story at the link below.

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