REQUEST FOR INFORMATION: KARPOWERSHIP SOUTH AFRICA

The Centre for Environmental Rights, on behalf of Fair Finance Southern Africa (FFSA), is questioning Türkiye İş Bankası A.Ş. (Isbank) about a US$ 140 million loan provided to Karpowership in March 2020. The letter argues that the Karpowership SA projects—consisting of three vessels with a total capacity of 1,220 MW in Coega, Richards Bay, and Saldanha—pose significant environmental and social risks. Specifically, it highlights the refusal of environmental authorisations by the Department of Forestry, Fisheries and the Environment (DFFE) due to "procedural irregularities" and the potential for the projects to emit "80 to 142 million tonnes CO2e of greenhouse gas" over 20 years. The authors contend that these projects prolong reliance on fossil fuels and may become "stranded assets" as renewable energy becomes cheaper. The letter asks Isbank to clarify if the loan was intended to finance these South African operations and how this aligns with its membership in the Net Zero Banking Alliance.

• Karpowership SA plans to deploy three floating gas powerships with a total installed capacity of 1,220 MW, distributed as 450 MW in Coega, 450 MW in Richards Bay, and 320 MW in Saldanha, under a 20-year contract as part of the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).
• The Department of Forestry, Fisheries and the Environment (DFFE) refused environmental authorisations for the projects and dismissed a subsequent appeal, citing "procedural irregularities" such as "inadequate public participation" and a lack of data on environmental and socioeconomic impacts.
• The projects are estimated to emit between 80 and 142 million tonnes of CO2e over 20 years due to methane emissions, which the document states is equivalent to the annual emissions of 17.2 to 30.5 million petrol-based passenger vehicles.
• Research by Profundo indicates that a syndicate of four banks—Standard Chartered, Investec Group, Isbank, and MCB Group—provided a US$ 140 million loan to Karpowership in March 2020 for general corporate purposes, maturing in March 2025.

APA

Centre for Environmental Rights (2022). REQUEST FOR INFORMATION: KARPOWERSHIP SOUTH AFRICA. https://cer.org.za/wp-content/uploads/2022/12/Letter-to-Isbank-re-Karpowership-SA.pdf?x21779

Chicago

Centre for Environmental Rights. REQUEST FOR INFORMATION: KARPOWERSHIP SOUTH AFRICA. 2022. https://cer.org.za/wp-content/uploads/2022/12/Letter-to-Isbank-re-Karpowership-SA.pdf?x21779.

Wikipedia

{{cite press release |author=Centre for Environmental Rights |title=REQUEST FOR INFORMATION: KARPOWERSHIP SOUTH AFRICA |date=September 2022 |url=https://cer.org.za/wp-content/uploads/2022/12/Letter-to-Isbank-re-Karpowership-SA.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{centreforenvironmentalrights2022request, author = {{Centre for Environmental Rights}}, title = {{REQUEST FOR INFORMATION: KARPOWERSHIP SOUTH AFRICA}}, publisher = {Centre for Environmental Rights}, year = {2022}, month = sep, url = {https://cer.org.za/wp-content/uploads/2022/12/Letter-to-Isbank-re-Karpowership-SA.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }