Investment plan

South Africa submits investment plan to donors pledging $8.5 billion in climate aid – sources

South Africa has submitted an investment plan to donors who pledged $8.5 billion to accelerate the country’s transition to renewable energy, two sources familiar with the matter said.

The funds – pledged by the European Union, Britain, France and Germany at climate talks in Glasgow last year, were to be used to kick-start South Africa’s switch from dirty coal to renewable energies, and were mainly offered in the form of concessional loans. . For donors to release the funds, South Africa must demonstrate that its plan will reduce its carbon emissions more than it already plans to under its existing climate commitments.

The sources said it was now up to the donors to review and comment on the plan submitted to them. A spokesperson for the presidency did not immediately respond to a request for comment.

Negotiators are racing to seal the deal ahead of the COP27 climate talks in Egypt from November 6, as it could serve as a model for other emerging economies seeking to wean themselves off coal. South Africa is the 12th biggest carbon emitter in the world, pumping out 430 megatonnes of CO2 in 2019, according to the latest data which puts it five places ahead of Britain, an economy eight times larger.

Coal powers 80% of electricity generation in South Africa, making utility Eskom’s transition from coal to renewables a priority. South Africa then aims to become a hub for the manufacture of green hydrogen and electric vehicles.

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