Standard Chartered is warning South Africa that extending the use of coal-powered plants may drive investors away, Bloomberg reports, citing comments by Standard Chartered CEO for South Africa Kweku Bedu-Addo to Business Day. The bank warned the South African government that investors will not want to be stuck with “stranded assets” as the world transitions to renewables, and sticking to coal will also make it difficult to use sovereign bond sales to fund investments in state power utility company Eskom. The bank has criticized the country’s plans to extend the operational life-cycle of coal plants in a bid to resolve the ongoing energy crisis. South Africa had set out a carbon neutrality target for 2050, but Electricity Minister Kgosientsho Ramokgopa says the country now has to make a choice on whether to prioritize “environmental needs” or the collapse of its economy due to the considerable increase in the rationing of power.

REFRESHER- South Africa has been suffering a power crisis for years, and outages are expected to continue in the country through to 2025, former CEO of state power company Eskom Andre De Ruyter said in January. The power crisis saw households go without electricity for up to 10 hours a day earlier this year. Regulatory constraints impeding private sector renewable energy provision are among the key reasons for the country’s power deficit, along with aging coal-based infrastructure, corruption, and criminal activity. Eskom consumes some 90 metric tons of coal yearly to generate electricity, according to South Africa’s Energy Ministry.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Climate change deniers are increasingly hurling “abuse” at scientists on Twitter since Elon Musk’s takeover of the popular social media platform last year. (The Guardian)
  • Listed firms worldwide will exceed their carbon budget two months sooner than an earlier estimate of December 2026, even though the number of global companies with set climate targets has risen by 8%. (Reuters)
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