Chinese Bank Ditches Zimbabwe Coal Project After Public Pressure

The Industrial and Commercial Bank of China, with a global portfolio that includes fossil fuel extraction, has agreed to stop financing the controversial Sengwa coal project in Gokwe after bowing to civic pressure. In 2020, Zimbabwe indicated its commitment to upscale investment in coal with President Emerson Mnangagwa saying this support for the coal sector "is in line with the vision of attaining a U.S.$12 billion mining economy by 2023 as well as the achievement of a middle income economy by 2030."

However, the Centre for Natural Resource Governance has been urging the government to focus on renewable energy and halt coal-related investments, as reliance on fossil fuels creates negative social and environmental impacts in the long run. In a damning report 'Coal Investments in Zimbabwe: A Misplaced Priority' CNRG said decisions to finance coal investments are not only undemocratic and unilateral, but also prejudice's the country's commitment to international conventions towards reducing carbon emissions.

InFocus

(File photo).

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