Task team suggests international climate finance deal to save Eskom

Task team suggests international climate finance deal to save Eskom

- Eskom is reportedly considering a multi-billion dollar climate financing deal

- This would involve major international funding, probably from European development finance institutions

- In exchange, Eskom would have to ditch its coal power plants and use cleaner means of energy production

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The task team addressing Eskom's financial problems has suggested a funding scheme to help the power utility which it says will be the "biggest climate finance deal in the world".

The deal would involve bringing in $10 billion in international funding if Eskom gets rid of its coal plants and switches to cleaner energy. 

Reportedly, the task team is discussing the deal with several major European finance institutions.

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This comes as Eskom struggles with its hefty debt, which is currently at least R440 million. During his State of the Nation Address, Cyril Ramaphosa announced a bill that would allocate a further R230 billion to the failing SOE, but this alone would not be enough to turn it around.

Such a climate financing deal would go a long way to assist Eskom. 

According to fin24, several international financiers are interested in funding initiatives to mitigate climate change across the world, particularly in nations like India, China and now South Africa.

Such a deal would involve the decommission of Eskom's coal power plants - something which has already been on the cards for some time as many of these plants are old and their infrastructure is deteriorating.

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The Eskom task team has reportedly made recommendations to Cyril Ramaphosa concerning this potential deal, but will need the president's stamp of approval to discuss the matter further, Briefly.co.za has gathered.

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Source: Briefly.co.za

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