China’s end to overseas coal financing could free $130 bn for clean energy

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New Delhi, Sep 29 | China’s pledge to end overseas coal financing will impact 44 coal plants totalling 42,220 megawatts (MW) of capacity, according to Global Energy Monitor’s (GEM) updated Global Coal Public Finance Tracker.

This will lead to cumulative lifetime savings of $130 billion and reduce yearly global coal demand growth by 30 million tonnes, adding up to 1,100 million tonnes over the lifetime of the plants.

GEM’s newly updated coal public financing map depicts what is now at stake for the future of proposed coal plants outside of China as Beijing deliberates the precise terms of its pledge to stop building new coal plants abroad.

The pledge was made by Chinese President Xi Jinping at the United Nations General Assembly last Tuesday. The news was followed by an announcement from the Bank of China on Friday that it would no longer provide financing for new coal plants and coal mining projects outside China starting October 1.

Based on a September 2021 survey by GEM, 44 coal plants totalling 42,220 MW of capacity are currently under consideration for public financing from state-owned Chinese institutions, and could therefore be affected by China’s announcement. The proposals are spread across 20 countries in Asia, Africa, South America, and eastern Europe.

If China’s announcement excludes any future public financing, all 44 coal plants are at risk of being cancelled, given the lack of other financing options for new coal plants. Japan and South Korea pledged to stop public lending for overseas coal power earlier this year.

Five of the projects are being considered for funding from the Bank of China, and are therefore at risk of having their financing from the bank cancelled as soon as next week.

The 44 coal plants represent over 40 per cent of the 103,000 MW pipeline for new coal plants in the 20 countries. If the coal plants are cancelled, it would result in savings of over $130 billion — $50 billion in construction costs and over $80 billion in fuel and operational costs over the lifetime of the plants.

In Africa, cancellation of the plants would cut the amount of proposed coal power by half, as China has been a major financial supporter of new coal plants in the continent.

Cancellation of the projects would also completely eliminate the pipeline for new coal plants in Kenya, Madagascar, and the Ivory Coast. The reduction would make the three countries eligible for entry into the recent “No New Coal” alliance, a UN pledge for countries to stop building new coal plants.

The biggest effects would be in Bangladesh and Mongolia, as the amount of proposed coal plants in each country would decrease by over 90 per cent, making them nearly eligible for the “No New Coal” pledge.

China’s announcement will also have a major impact on the global coal market, as many of the 20 countries import the majority of their coal. Together the 20 countries were home to over 10 per cent of thermal coal imports in 2019, totalling 130 million tonnes.

“China’s announcement is the death knell for overseas public financing for coal, and many proposed coal plants will be cancelled, given the lack of alternative financing options,” said Christine Shearer, GEM’s Coal Program Director.

Source: IANS

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Does MBA really help in getting a better job offer ?

Does MBA really help in getting a better job offer ?

Most students pursuing an MBA come with the sole objective of having a decent job offer or a promotion in the existing job soon after completion of the MBA. And most of them take loans to pursue this career dream. According to a recent survey by education portal Campusutra.com  74% MBA 2022-24 aspirants said they would opt for education loans.

There are exceptional cases like those seeking master’s degree or may have a family business to take care of or an entrepreneurial venture in mind. But the exception cases are barely 1%. For the rest 99%, a management degree is a ticket to a dream job through campus placements or leap towards career enhancements. Stakes are high as many of them quit their jobs which essentially means loss of 2 years of income, apprehension and uncertainty of the job market. On top of that, the pressure to pay back the education loans. Hence the returns have to be high. There is more than just the management degree. Colleges need to ensure that they offer quality management education which enables them to be prepared for not just the demands of recruiters and for a decent job but also to sustain and achieve, all along their career path.

  • So, what exactly are the B Schools doing to prepare their students for the job market and make them industry ready ?
  •  Are B schools ready to deliver and prepare the future business leaders to cope up with the disrupted market ?  

These are the two key questions every MBA aspirant needs to ask, check and validate before filling the MBA application forms of management institutes. And worth mentioning that these application forms do not come cheap. An MBA aspirant who may have shortlisted 5 B Schools to apply for, may end up spending Rs 10,000.00 to Rs 15,000.00 just buying MBA / PGDM application forms.

While internship and placements data of some management institutes clearly indicates that recruiters today have specific demands. The skill sets looked for are job centric and industry oriented. MBA schools which have adopted new models of delivery and technology, redesigned their courses, built an effective evaluation process and prepared the students to cope with the dynamic business scenario, have done great with campus placements despite the economic slow down.

However, the skill set being looked for by a consulting company like Deloitte or KPMG may be quite different from FMCG or a manufacturing sector. Institutes need to acknowledge this fact and act accordingly.

  • Management institutes should ensure that students are intellectually engaged, self motivated and adapt to changes fast. In one word ‘VUCA ready’.
  • B Schools should encourage students to participate in national and international competitive events, simulations of business scenarios.
  • Institutes should have the right mix of faculty members with industry exposure and pure academics.

The placement records of 2021 across top management institutes indicated the fact that recruitment is happening, skilled talent is in demand and certain management institutions continued to attract recruiters even in the middle of an ongoing crisis.

It is time, all management institutes rise to the occasion, understand market realities and identify areas of improvement at both ends – students and faculty.

After all, the stakes are high at both ends. B Schools taking corrective measures will stay while those which are lagging will end up shutting down.

Author Name : Nirmalya Pal

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