South African coal plants allowed to breach emission rules

illuminem summarises for you the essential news of the day. Read the full piece on Financial Post or enjoy below:

🗞️ Driving the news: South Africa has granted emission exemptions to eight coal-fired power plants operated by state-owned Eskom to prioritise electricity supply over pollution control
• Plants such as Lethabo, Kendal, and Medupi received five-year exemptions, while others like Duvha and Matla may emit beyond legal limits until 2034
• The move aims to support Eskom amid chronic power shortages and financial strain

🔭 The context: South Africa, heavily reliant on coal for over 80% of its electricity, has endured years of rotational blackouts
• Eskom’s energy transition plans have faced delays due to grid issues and legal hurdles, while the government pressures the utility to maintain supply stability
• Environment Minister Dion George said the decision was a compromise, not a full concession to Eskom's requests

🌍 Why it matters for the planet: Extending the operation of high-emission coal plants increases greenhouse gas output and air pollution, delaying South Africa’s decarbonisation goals
• This poses major risks to public health and undermines global climate commitments
• Environmental groups warn of thousands of premature deaths and billions in health-related costs

⏭️ What's next: Eskom must accelerate renewable energy deployment to limit long-term reliance on coal
• The government is expected to balance emissions policy with energy security as public pressure grows
• Ongoing delays in new generation capacity could deepen South Africa’s energy and climate challenges

💬 One quote: “We’re not out to squeeze Eskom to a point where they can not operate. It does put them under pressure. That’s the point.” — Dion George, Environment Minister

📈 One stat: South Africa’s economy lost 481 billion rand ($26.2 billion) in output in 2024 due to electricity outages

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