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South Africa’s financial sector is playing a role in reducing the country’s green-house gases through the implementation of stricter financial models for new generation projects.

This week, Standard Bank announced that it has set up a strict set of parameters that will guide all future financing decisions as they relate to new coal powered stations. Read: SA Minister calls for more investments in clean coal

These parameters apply to Standard Bank Group and to all its operations globally, the Bank said in a statement.

If a proposed development does not meet these parameters, Standard Bank will not provide finance. Read: Finance Ministers to mobilise climate finance

This position is broadly in line with the Organisation for Economic Co-operation and Development (OECD) Export Credit Agency Coal-Fired Power Finance Guidelines, which assesses the financing of coal-fired power generation based on a country’s energy poverty, technology and size of plant. This model has been observed by Standard Bank since 1 July 2018.

Kenny Fihla, the bank’s Chief Executive of Corporate and Investment Banking, said: “As a responsible corporate citizen, the bank’s decisions and actions are informed by our values and ethics.

“We consider long-term impacts alongside shorter-term outcomes, and balance the interests of the Group, stakeholders and societies in which we operate to deliver positive impacts and create sustainable value on the African continent.”

Fihla added: “Standard Bank is also alive to the benefits and impact that clean energy investment has. As such, 86% of all energy funding conducted by Standard Bank since 2012 has been in green energy or renewables totalling over $2 billion.”