South Africa, having secured $8.5 billion in climate finance from some of the world’s richest countries, is in talks with additional nations to help it cut reliance on coal, Environment Minister Barbara Creecy said.
The minister said the climate finance which is being provided by the US, UK, Germany, France and the European Union as part of a Just Energy Transition Partnership – has been hailed as a prototype for deals to wean other coal-dependent developing nations off the dirtiest fossil fuel. Still, it’s a fraction of the R1.5 trillion the country has estimated it needs for its plan to move away from coal over the next five years.
With more than 80% of its electricity coming from a fleet of mainly dilapidated coal-fired power plants and regular rolling blackouts because the state power utility, Eskom, can’t meet demand, the country is in dire need of investment in its electricity sector.
Climate finance refers to local, national or transnational financing that is drawn from public, private and alternative sources of financing for the mitigation and adaptation actions to address climate change.
In addition to electricity, South Africa, as part of its coal transition plan, is trying to boost investment in its nascent electric vehicle and green hydrogen industries.
