World Bank warns Kenya on coal energy

FRANCE: As the Kenyan Government spends billions of Shillings in exploration of coal, the World Bank has warned that carbon emitters will pay hefty taxes for it in the next 20 years.

The Government intends to start a coal project in Lamu in September this year, as it continues exploration of coal deposits that began in March this year in Kwale, Taita Taveta and Kilifi counties.

Speaking in Paris, Frabnce during an interview with journalists, World Bank's Vice President –Special Envoy to Climate Change Ms Rachel Kyte said that even if African countries continue to find oil and gas on shore and off shore, they should increase power connectivity in the cleanest possible way as a way of helping the planet in working towards avoiding exposure to carbon.

"We need less carbon. We have to decarbonize development. To attain classic economic achievements, one has to put a price to whatever it is that is weighing them down. Currently it is carbon hence we project that it will be expensive in 20 years’ time because some countries have begun imposing taxes on it," she said.
She said there are many options within East Africa that a country like Kenya can explore rather than coal.
"Extraordinary resource are under exploited like geothermal, hydroresources, remarkable solar and wind resources. For example, Kenya can exploit gas and oil found in Turkana, hydro from Ethiopia, and from Rwanda within east Africa. There are all kinds of options within East Africa, you have all kinds of alternatives and hence have to explore the clean and cheapest solutions," she said.

She said since African countries are just beginning to realize fossil fuels, they have an opportunity to build development pathways through cleaner energy different from developed countries.

"Using cleaner energy should be an opportunity not a burden. If you grow cleaner energy, there will be safer jobs than in brown economy.

There will be less polluting hence fewer diseases. Carbon has a social cost as well as emission impact. If you can grow without the social cost, then your healthcare cost won't be paid from illness emanating
from carbon," Kyte said.

She said the International community has an obligation to help Africa explore the cleanest options of energy.

You will be incentivised to use other options of clean energy. But those insisting on carbon should know that taxes are being put on carbon. For example South Africa has begun. Over time, most regimes
will increase the price on carbon to drive it out of the economy by 2050. It is a precious resource, but we are running out of room because it's a harmful luxury good," she said.

She added, "When making investment on clean or fossil fuel technology, think about cost of any lifetime power plants being made now since the carbon will have price and steadily rise".