6
V. R. Nalule
invest in companies that mine more than 20 million tonnes of coal annually or generate more than 10,000 MW of power using coal.
10 Besides
Norway, in November 2019, The European Investment Bank (EIB),
approved a policy to ban funding for oil, gas and coal projects at the
end of 2021. Since 2013, the EIB has funded e13.4bn of fossil fuel
projects, and in 2018 alone, it funded about e2bn worth of projects.
With the ban, however, no more fossil fuel projects will be funded after
2021, although gas projects could still be funded as long as they are utilising clean technologies such as carbon capture and storage, combining
heat and power generation, or mixing in renewable gases with the
fossil natural gas.
11 Besides the reduction in fossil fuel funding, climate
activists have also put massive pressure on investors. For instance, in June
2019, Kenya halted the Lamu coal power project due to environmental
concerns.
12 Protests against coal projects have also been evidenced in
European countries such as Germany.
13
Besides the decline in fossil fuel investments, a transition to a lowcarbon economy is also becoming more attractive due to the lowering
costs for renewable energy. Data has emerged that shows that renewable energy is becoming more cost-effective compared to other sources
of energy, even in the absence of subsidies.
14 This is mainly due to the
decline in the costs of installation and maintenance of renewables.
15
Despite all these developments, we have seen that amid a pandemic such
as the Coronavirus disease (COVID-19), countries have taken drastic
measures to respond to energy security, including making massive investments in fossil fuels. For instance, in June 2020, China expanded its
10 Ibid.
11 BBC News: European Investment Bank Drops Fossil Fuel Funding. 14 November 2019. Can
be accessed at, https://www.bbc.co.uk/news/business-50427873.
12 BBC News: Kenya halts Lamu Coal Power Project. 26 June 2019. Can be accessed at, https://
www.bbc.co.uk/news/world-africa-48771519.
13 BBC News: Climate Protesters Storm Garzweiler Coalmine in Germany. 23 June 2019. Can
be accessed at, https://www.bbc.co.uk/news/world-europe-48734321.
14 IRENA: Renewable Power Generation Costs in 2019. Can be accessed at, https://www.irena.
org/-/media/Files/IRENA/Agency/Publication/2020/Jun/IRENA_Power_Generation_Costs_2
019.pdf.
15 Ibid.
V. R. Nalule
invest in companies that mine more than 20 million tonnes of coal annually or generate more than 10,000 MW of power using coal.
10 Besides
Norway, in November 2019, The European Investment Bank (EIB),
approved a policy to ban funding for oil, gas and coal projects at the
end of 2021. Since 2013, the EIB has funded e13.4bn of fossil fuel
projects, and in 2018 alone, it funded about e2bn worth of projects.
With the ban, however, no more fossil fuel projects will be funded after
2021, although gas projects could still be funded as long as they are utilising clean technologies such as carbon capture and storage, combining
heat and power generation, or mixing in renewable gases with the
fossil natural gas.
11 Besides the reduction in fossil fuel funding, climate
activists have also put massive pressure on investors. For instance, in June
2019, Kenya halted the Lamu coal power project due to environmental
concerns.
12 Protests against coal projects have also been evidenced in
European countries such as Germany.
13
Besides the decline in fossil fuel investments, a transition to a lowcarbon economy is also becoming more attractive due to the lowering
costs for renewable energy. Data has emerged that shows that renewable energy is becoming more cost-effective compared to other sources
of energy, even in the absence of subsidies.
14 This is mainly due to the
decline in the costs of installation and maintenance of renewables.
15
Despite all these developments, we have seen that amid a pandemic such
as the Coronavirus disease (COVID-19), countries have taken drastic
measures to respond to energy security, including making massive investments in fossil fuels. For instance, in June 2020, China expanded its
10 Ibid.
11 BBC News: European Investment Bank Drops Fossil Fuel Funding. 14 November 2019. Can
be accessed at, https://www.bbc.co.uk/news/business-50427873.
12 BBC News: Kenya halts Lamu Coal Power Project. 26 June 2019. Can be accessed at, https://
www.bbc.co.uk/news/world-africa-48771519.
13 BBC News: Climate Protesters Storm Garzweiler Coalmine in Germany. 23 June 2019. Can
be accessed at, https://www.bbc.co.uk/news/world-europe-48734321.
14 IRENA: Renewable Power Generation Costs in 2019. Can be accessed at, https://www.irena.
org/-/media/Files/IRENA/Agency/Publication/2020/Jun/IRENA_Power_Generation_Costs_2
019.pdf.
15 Ibid.