New­bankon­the­block

BRICS New De­vel­op­ment Bank op­er­ates as a mul­ti­lat­eral de­vel­op­ment fi­nan­cial in­sti­tu­tion to help emerg­ing economies

ChinAfrica - - Cover Story -

THE roofs at the Shang­hai Lin­gang In­dus­trial Area are now serv­ing a more pro­duc­tive pur­pose than sim­ply cov­er­ing fac­to­ries and ware­houses. In Au­gust, the vast area in south­east Shang­hai had so­lar pan­els in­stalled on all roofs, ca­pa­ble of gen­er­at­ing power for lo­cal busi­nesses and sur­round­ing house­holds.

The in­au­gu­ral project of the new en­ergy demon­stra­tion pro­gram that is ex­pected to be ex­panded to more ar­eas was funded in 2016 by the first lend­ing pro­gram of the New De­vel­op­ment Bank (NDB), an in­ter­na­tional mul­ti­lat­eral fi­nan­cial in­sti­tu­tion co­founded by BRICS coun­tries.

“The rooftop pho­to­voltaic power sta­tions with a ca­pac­ity of 100 kw will re­duce an­nual car­bon diox­ide emis­sions by 88,360 tons,” said Wang Tai, Deputy Gen­eral Man­ager of Shang­hai Hongbo New En­ergy De­vel­op­ment Ltd., bor­rower of the NDB’S first Chi­nese loan and con­trac­tor of the new en­ergy uti­liza­tion project.

This is just one of the sus­tain­able de­vel­op­ment and green in­fra­struc­ture pro­grams funded and sup­ported by the NDB. Since it came into op­er­a­tion in July 2015, the NDB has ap­proved seven loans to mem­ber na­tions for green en­ergy de­vel­op­ment. It is of­fer­ing a de­vel­op­ing coun­try al­ter­na­tive to global de­vel­op­ment fi­nance, ac­cord­ing to ob­servers. green en­ergy high up on its de­vel­op­ment agenda. Loans granted by the NDB in 2016 in­clude one given to Eskom, South Africa’s largest power sup­plier that gen­er­ates nearly 95 per­cent of the elec­tric­ity used in the coun­try and 45 per­cent of that used in Africa. The $180-mil­lion loan will as­sist re­new­able en­ergy projects and is ex­pected to re­duce car­bon diox­ide emis­sions by 2 mil­lion tons, ac­cord­ing to the bank.

In fact, to op­ti­mize its power port­fo­lio, South Africa in­tro­duced the In­te­grated Re­source Plan in 2010 and pledged to add 10,000 mw of re­new­able en­ergy ca­pac­ity over the next 20 years. A ma­jor re­duc­tion, to around 46 per­cent of ca­pac­ity by 2030, in re­liance on coal as the main source of elec­tric­ity will be re­al­ized due to the in­tro­duc­tion of sus­tain­able ca­pac­ity from re­new­able sources.

“This fi­nan­cial in­sti­tu­tion co­founded by emerg­ing economies aims to as­sist mem­ber coun­tries to thrive in a sus­tain­able path rather than achieve GDP growth at the cost of pol­lut­ing the en­vi­ron­ment,” said Zhan Shu, a se­nior ad­vi­sor with the NDB.

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