SA Secures Watershed R9bn Deal From Climate Investment Funds to Transition From Coal to Renewable Energy

• The SA government has secured about R9 billion in concessional finance for the Just Energy transition
• The climate deal comes after Climate Investment Funds invited South Africa to develop an investment plan last year
• The funding will be geared toward decommissioning ageing coal-fired power stations while deploying new renewable energy generation capacity

PRETORIA - South Africa has secured R9 billion to aid the shift to clean energy, in a win for the nation's Just Energy transition away from coal.

The funding was approved by Climate Investment Funds (CIF), a multilateral climate fund associated with the World Bank.

According to News24, the funding comes after South Africa developed an investment plan as part of its participation in the CIF's Accelerating Coal Transition (ACT) investment programme.

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A statement from the CIF said the funding was aimed at building momentum toward ambitious climate, energy and developmental goals.

Minister of Forestry, Fisheries and the Environment Barbara Creecy welcomed the approval of funding from the CIF, adding that South Africa would need an estimated R1 trillion in investment to support the transition to renewables.

Though the CIF funding is a drop in the ocean compared to how much is needed, it adds to a growing pool of finances that the nation is securing to ensure carbon emissions.

In 2021, the European Union, Germany, France, the UK and the US pledged R131 billion to South Africa's energy transition during the COP26 climate negotiations in Glasgow, Daily Maverick reported.

Cabinet recently approved an investment plan for the R131 billion pledge, which will be doled out through grants, concessional loans and investment and risk-sharing investments over the next three to five years.

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South Africans react to the R9bn climate finance deal

South Africans worry that the money will be looted instead of used for the Just Energy transition.

Here are some comments:

@CedricDeBeer1 asked:

"What are the terms of this "concessional loan". Is it in dollars? SA should be able to borrow that money internally. Is "climate finance" just another route to indebtedness?"

@roly_i claimed:

"Cadres Xmas bonus loading."

@sloan_86333 added:

"Happy looting days . "

@MichalDahan11 demanded:

"I WANT CONTINUOUS UPDATES ON THE WORK DONE AND MONEY SPENT. That’s that on that."

Mantashe takes U-turn on coal, says Just Energy transition is key to SA’s future

In a related matter, Briefly News reported that Mineral Resources and Energy Minister Gwede Mantashe had a change of heart about the energy transition in South Africa.

Mantashe said an energy transition was the future for South Africa while speaking at the Council for Geoscience Summit on Tuesday, 25 October. The energy minister added that the trajectory of the global economy demands a shift away from coal.

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Mantashes comments starkly contrasted with the many instances when the minister insisted that decarbonising South Africa would spell economic devastation.

Source: Briefly News