Unburnable Carbon

The report finds that South African coal reserves earmarked for domestic use exceed the country's potential carbon budget through 2050, creating a risk of 'unburnable carbon' and stranded assets. It argues that current capital expenditure on developing new coal resources is incompatible with climate goals and urges investors to challenge the business models of coal miners.

• Companies listed in South Africa hold coal reserves equivalent to 38.9 GtCO2 emissions, with approximately 48.1% of these reserves located within South Africa.
• There is a significant volume of undeveloped coal resources in the pipeline that could double or triple existing reserves; for JSE100 companies, these resources total 102.15 GtCO2.
• Domestic coal reserves exceed the projected carbon budget; while the government's 'required by science' option suggests a total budget of 16.4 GtCO2e (2010-2050) for all sectors, reserves earmarked for domestic use alone are estimated at 19.2 GtCO2e.
• The analysis concludes that South Africa has no capacity within its carbon budget to develop and burn new coal reserves through 2050, rendering current capital expenditure on new resource development incompatible with a low-carbon future.
• Institutional investors, specifically the Government Employees Pension Fund (GEPF), have significant exposure to this risk, with coal-reserve-holding companies making up approximately 17% of the GEPF's overall South African equity portfolio.
• Different companies face varying levels of risk: SASOL and Exxaro are highly exposed due to their domestic focus, while BHP Billiton and Anglo American have some buffer through global diversification and export markets.

APA

WWF South Africa (2012). Unburnable Carbon. http://awsassets.wwf.org.za/downloads/budgeting_carbon_in_south_africa_carbon_tracker_initiative_nov_2012.pdf

Chicago

WWF South Africa. Unburnable Carbon. 2012. http://awsassets.wwf.org.za/downloads/budgeting_carbon_in_south_africa_carbon_tracker_initiative_nov_2012.pdf.

Wikipedia

{{cite report |author=WWF South Africa |title=Unburnable Carbon |date=November 2012 |url=http://awsassets.wwf.org.za/downloads/budgeting_carbon_in_south_africa_carbon_tracker_initiative_nov_2012.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wwfsouthafrica2012unburnable, author = {{WWF South Africa}}, title = {{Unburnable Carbon}}, institution = {WWF South Africa}, year = {2012}, month = nov, url = {http://awsassets.wwf.org.za/downloads/budgeting_carbon_in_south_africa_carbon_tracker_initiative_nov_2012.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }