NDB Approves USD 2.3 Bn for Global Renewable Energy Projects
The New Development Bank has greenlit USD 2.3 billion for ten renewable projects, including solar and wind, aiming to add 2.8 GW capacity and cut 4 million tons of CO2 annually.
August 29, 2024. By EI News Network
This announcement comes on the heels of the NDB’s Ninth Annual Meeting, currently underway in Cape Town from August 29 to 31. The meeting, themed 'Investing in a Sustainable Future,' emphasises the bank’s dedication to addressing global challenges through sustainable development initiatives. The gathering also highlights the bank's focus on supporting projects that foster long-term environmental and economic benefits.
It may be noted that the New Development Bank (NDB) was established by the BRICS countries (Brazil, Russia, India, China, and South Africa), to focus on financing infrastructure and sustainable development projects in emerging economies.
Among the notable projects funded, the NDB has allocated USD 180 million to Eskom for the development of essential grid connection infrastructure in South Africa. Approved in April 2016, this funding aims to decrease South Africa’s dependence on fossil fuels and bolster the country’s capacity for integrating renewable energy sources. The project will integrate a total of 670 MW of renewable energy into the grid, thereby addressing local electricity demands and laying the groundwork for future renewable energy advancements.
The impact of these projects is closely aligned with South Africa’s national sustainability goals. The NDB’s support aligns with the country’s Integrated Resource Plan 2019, which sets ambitious targets to expand renewable energy capacity, including 14.4 GW of wind power and 6 GW of solar power by 2030. Furthermore, the NDB's USD 300 million loan for the Greenhouse Gas Emissions Reduction and Energy Sector Development Project directly supports South Africa's commitment under the Paris Agreement to cut greenhouse gas emissions by 42 percent by 2025.
The NDB’s efforts also complement South Africa’s Just Energy Transition Partnership (JETP), which seeks to accelerate the economy's decarbonisation while ensuring a just transition for communities affected by these changes. The bank has committed USD 3 billion over five years to support JETP, demonstrating a strong alignment with the country’s broader sustainability objectives.
In addition to its renewable energy investments, the NDB has made strides in supporting water infrastructure with a USD 179.2 million loan for water supply and sanitation projects. This investment aligns with South Africa’s National Water and Sanitation Master Plan, addressing pressing sustainability challenges in the region.
Overall, the NDB’s approach to financing green projects supports South Africa’s sustainability agenda, including developing local expertise in green technologies and advancing sustainable development practices. By focusing on these initiatives, the NDB is playing a crucial role in helping South Africa transition to a low-carbon, climate-resilient economy as outlined in the country’s National Development Plan 2030.
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Kamalakannan Thiruvadi
Regional Executive, South Asia
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