COP27: Ramaphosa Secures Additional R10bn for Energy Transition, SA thinks Pledge is “Suspicious”

• Rich western countries have committed more money to South Africa's just energy transition plan
• The International Partners Group has pledged an additional R 10 billion, effectively endorsing SA's R1.4 trillion plan
• Citizens and the SA government are concerned that the financing will increase SA debt burned as the plan relies heavily on loans which must be paid back

SHARM EL-SHEIKH - The COP27 negotiations are barely underway, and President Cyril Ramaphosa has already secured an additional R10 billion pledge for South Africa's Just Energy Transition Plan.

President Ramaphosa handed the R1.5 trillion just energy transition investment plan to the International Partners Group (IPG) at the climate talks in Sharm El-Sheikh, Egypt, on Monday, 7 November.

The added pledge means the IPG, consisting of the UK, the US, France, Germany and the EU, has endorsed SA's R1.5 investment plan, effectively adding to the R153 billion pledged made during COP26 in 2021.

Read also

Calls to move Africa's freight back to railway, move could bring billions in investments

The investment is geared towards weaning South Africa off of its dependence on coal to meet the nation's climate commitments, News24 reported.

South Africa is currently the 13th largest greenhouse emitter in the world, with much of the nation's emissions stemming from its coal-powered energy generation. Decarbonisation has been earmarked to reduce carbon emissions and limit global warming to 1.5°C.

Though the need to transition SA's energy mix is clear, citizens worry that climate financing will increase SA's debt. The concerns of South Africans have been echoed by the government, which has criticised the structure of the investment plan claiming it will add to the nation's debt burden.

According to Financial Times, the climate financing offered by the developed nations rely heavily on loans, with only 4% of the international funding plan comprising grants.

Read also

World Bank boss greenlights SA’s energy plan after touring Komati with ministers Godongwana and Gordhan

Despite this, the UK's newly elected Prime Minister and chair of the IPG, Rishi Sunak, sang Ramaposa's praises claiming South Africa's JET Investment Plan will serve as a blueprint for a sustainable and fair transition towards a strong green economy.

Citizens react to Ramaphosa securing additional funding for the energy transition

South Africans are questioning the IPG's motivation behind funding South Africa's energy transition.

Here are some reactions:

@BurnerMac_ commented:

"The entire EU should be focusing on their own energy crisis this coming winter."

@SihleWasembo pointed out:

"We must transition, but they are burning coal."

@Eug63923630 asked:

"Besides global pollution and future risks, what are these countries to gain in this support of theirs in S. A....... Very suspicious if you ask me"

World Bank boss greenlights SA’s energy plan after successful meeting with ministers Godongwana and Gordhan

In a related story, Briefly News reported that Finance Minister Enoch Godongwana and Public Enterprises Minister Pravin Gordhan showed the president of the World Bank, David Malpass, around the recently decommissioned Komati power station on Saturday, 5 November.

Read also

Vietnam struggles to break one of world's biggest coal addictions

The purpose of the meeting was to seal the deal on the 9 billion funding for the conversion of Komati into a renewable energy station as part of the national energy transition.

Malpass expressed his confidence in SA's ability to meet its just energy transition targets in light of the global community's difficulty in reducing greenhouse gas emissions.

Source: Briefly News