Investment plan

“Protections will be integrated”

The question of whether SA can be trusted with the money is fundamental – Bruce Whitfield discusses JET’s investment plan with Daniel Mminele, head of the President’s Climate Finance Task Force.

– South Africa officially handed over its R1.5 trillion investment plan for a just energy transition to the International Partners Group (IPG) during COP27 in Egypt.

– President Cyril Ramaphosa said he hoped this partnership would offer an innovative approach to financing by developed countries.


Image of President Cyril Ramaphosa addressing COP27 @PresidencyZA

South Africa officially handed over its R1.5 trillion Just Energy Transition (JET) Investment Plan to the International Partners Group (IPG) during the UN Climate Change Conference in Egypt.

The partnership was developed at COP26 in Glasgow last year in discussions with the European Union, the United States, France, Germany and the United Kingdom.

On Tuesday, President Cyril Ramaphosa delivered his national statement at COP27.

This partnership is based on a common understanding that contributing countries have with respect to global warming and a responsibility for an ongoing interest in supporting a just transition in countries with developing economies.

President Cyril Ramaphosa

We hope that this partnership will provide an innovative approach to financing by developed countries for the ambitious but necessary mitigation and adaptation goals of developing countries.

President Cyril Ramaphosa

The South African delegation was touched and encouraged by the welcome they received at the climate conference, said Daniel Mminele, Head of the Presidential Climate Finance Task Force.

He reiterated the President’s point that the JET Investment Plan has great potential to serve as a benchmark and model for other countries that find themselves in similar positions.

The formal presentation of the plan at the IPG last night was an important step in the realization of the partnership for a just energy transition that was forged last year at COP26… The various leaders of the partner countries have very strongly supported the process…

Daniel Mminele, Head of the Presidential Task Team on Climate Finance

It’s come down to the wire… The actual Cabinet approval of the plan has already happened on October 19, but there are obviously last-minute things to make sure the documents are correct. .

Daniel Mminele, Head of the Presidential Task Team on Climate Finance

In his address, President Ramaphosa pointed out that climate change financing for most African countries is out of reach.

Mminele says it was made clear from the outset that South Africa’s ability to successfully meet its decarbonization commitments would depend entirely on the availability of resources.

We have said this many times… If you tell our plan of around 1.5 trillion rand [for the first five years] to what is being offered by our partners, you will see that there is quite a funding gap, so there is a need for funds to be mobilized at scale on concessional terms…

Daniel Mminele, Head of the Presidential Task Team on Climate Finance

…so beyond what the International Partners Group has committed to mobilizing, we are already committing various other sources of funding in terms of other countries that may deal with us bilaterally or join the IPG…

Daniel Mminele, Head of the Presidential Task Team on Climate Finance

South Africa does not have the best record when it comes to respecting other people’s money.

The assumption is that there would be protections built into the plan?

With that, admittedly, creating a level of anxiety among some of our funders…this plan is very detailed and very clear in terms of…how we think these investments should be prioritized…The objective of our work going forward will be to develop a comprehensive implementation plan, which will be talk about some of these issues because they are critical…

Daniel Mminele, Head of the Presidential Task Team on Climate Finance

…especially if we want this plan and the JET process as a whole to stand up to scrutiny and be worthy of setting that example and benchmark…to ensure that the right governance and accountability processes are in place. square…

Daniel Mminele, Head of the Presidential Task Team on Climate Finance

Scroll up to listen to Mminele’s interview

This article first appeared on CapeTalk: SA’s R1.5 trillion clean energy investment plan: ‘Safeguards will be built in’

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