Funds have been promised by France, Germany, EU, UK and US during last yr’s COP26 climate talks to wean off coal.
South Africa has submitted an investment plan to donors who’ve pledged $8.5bn to assist the country’s transition to renewable energy, in line with two sources conversant in the matter.
On Thursday, presidency spokesperson Vincent Magwenya confirmed that the plan was ready but declined to say whether it had been submitted.
“A draft of the investment plan, which outlines the investments required to realize South Africa’s ambitious climate targets … has been finalised and can be shared with key stakeholders before it’s submitted to cabinet for approval,” he said.
The officials are racing to complete the deal before the COP27 climate talks that can happen in Egypt, starting on November 6. The proposal could turn out to be a possible model for other emerging economies that seek to transition from coal to renewable energy.
The funds have been promised by France, Germany, the European Union, the UK and the USA in the course of the last climate talks in Glasgow, to kick-start South Africa’s move from coal to renewable energy, mostly offered in the shape of concessional loans.
As a way to get the needed $8.5bn from donors, South Africa must show its plan will reduce its carbon emission by greater than it was planning on doing under already existing climate commitments.
Nevertheless, the shift of South Africa’s economy into renewable energy is estimated to cost a minimum of $250bn over the subsequent three many years.
South Africa is the world’s twelfth biggest carbon emitter – 430 megatonnes of CO2 in 2019 – placing it five places ahead of Britain, an economy eight times its size.
Currently, 80 percent of South Africa’s power generation comes from coal fuels. Consequently, it goals to turn out to be a hub for green hydrogen and electric vehicle manufacturing.
Magwenya reiterated the federal government’s position that there was a funding shortage to be addressed within the deal but wouldn’t say how big it was.
The country has been experiencing its worst yr of electricity outages, with state-owned energy provider Eskom, which generates greater than 90 percent of South Africa’s power, struggling to fulfill demands.
