South Africa has been listed as the second-worst performer of the G20 non-OECD member countries in terms of lack of transparency and continued support of coal production, fossil fuel-based power, and consumption of fossil fuels.
According to a report on global fossil fuel subsidies by the International Institute for Sustainable Development (IISD), the Overseas Development Institute (ODI), and Oil Change International (OCI), government spends more than R93 billion a year ($5.7 billion) on direct support for fossil fuel use through subsidies to its predominantly coal-based electricity system.
“A lack of transparency around other hidden forms of price support to fossil fuels and bailouts to the state power utility Eskom means that this figure is likely to be higher,” the IISD said.
Quoted in the report, associate for IISD’s energy programme, Anna Geddes, said that the government failed to frequently report and quantify various forms of state support for heavy fossil fuel users such as Eskom and Sasol. She also said that although SA had made a commitment to reduce the use of fossil fuel, the country had seen a 14% increase in total government support for fossil fuels over the last three years.
According to the IISD, government’s continued spending to pipe precious water from drought-prone areas to coal-fired power plants has raised serious concerns.
“More than R1 billion ($68 million) in government funding has been made available for water transportation projects to supply water to coal power plants in the Limpopo province. This includes the Matimba and Medupi power stations near Lephalale and the water-intensive Grootegeluk coal mine,” Geddes said.
