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Article

26 Apr 2010

Author:
Matthew Berger, IPS

Civil Society Calls on World Bank to Reform its Energy Lending

[N]umerous groups have chimed in on the need for and direction of a new World Bank energy strategy. The bank's review of this strategy, according to which it makes decisions on loans to energy projects in developing countries, is ongoing and is due to be finalised early next year...[A] controversial loan package for a coal-fired power plant to be built by utility giant Eskom in South Africa was approved by the bank…[despite] a range of objections…among them the emissions from the burning of coal…[and] air and water pollution…On the other hand, the loan would include small...funds for renewable energy projects...[T]he Eskom vote made one thing clear - a reexamination of the bank's energy lending in the new, climate change-impacted world is overdue.

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