The Star quotes professor Daniel Kammen, Director of Renewable and Appropriate Energy Laboratory at the University of California, Berkeley, saying, "GE has apparently agreed to reconsider their support and investment in the Lamu coal plan.
"From my published analysis, the absurdly costly economics of the Lamu coal-fired power plant have been clear for years."
The investor letter highlights the concern that the proposed coal plant will have environmental, health and climate impacts and pose significant threats to local communities and industries like fishing and tourism—industries that many Lamu citizens depend on for their livelihoods. Further, the investors say, the coal plant will undermine Kenya’s commitment to, and GE’s public support for, the Paris Climate Agreement and will significantly increase electricity rates in Kenya. Finally, the letter notes that the Lamu coal plant is a counterproductive step for GE that “is likely to lead to reputational risks that jeopardize its social license to operate.”
“GE’s investment in Kenya’s first coal plant will be bad for people, the planet and the bottom line,” Michael Passoff, CEO of Proxy Impact, said. “Kenya is sufficient in energy at this time, and future demand could be met by the rapid growth of renewable energy, which is seen as the preferred and cheaper energy source.”
“We find the decision to take an ownership stake in such a controversial project alarming,” Danielle Fugere, president of As You Sow, stated. “As investors, we are concerned that the company is not sufficiently considering the community, climate and reputational risks that will come from the Lamu coal plant project. We look forward to engaging with GE to address how it can help bring low cost, clean energy projects to communities like Lamu.”
