Energy Central News

Curated power industry news from thousands of top sources.

News

South Africa needs funds to shift from coal

  • Oct 1, 2021
  • 113 views
Source: 
Namibian Sun

South Africa needs funds to shift from coalWorld's 12th biggest carbon emitter A portion of the money raised would be earmarked for a fund to support thousands of workers losing jobs in coal plants. While South Africa is committed to a just transition to cleaner energy sources, we need certainty of financing to accelerate this transition. Environment department ALEXANDER WINNING

South Africa told visiting climate envoys from the United States, Britain, Germany and France that it needs major financial support to move away from coal, the environment department said on Wednesday.

South Africa is the world's 12th biggest carbon emitter, according to the Global Carbon Atlas, emitting 479 million tonnes of carbon dioxide equivalent (Mt CO2e) in 2019. It is also by far Africa's largest emitter.

This month, the government adopted a more ambitious emissions reduction target of 350-420 Mt CO2e per year by 2030, weeks before the United Nations COP26 climate summit, where it hopes to wring money out of rich countries for a swifter transition to renewable energy.

"While South Africa is committed to a just transition to cleaner energy sources, we need certainty of financing to accelerate this transition. We do need an irrevocable agreement that we can sign at COP26," the environment department said.

South Africa's struggling state power utility, which produces most of its power by burning coal more than 80% of the country's power is produced this way wants billions of dollars to replace its heavily polluting coal plants with cleaner alternatives.

Support

South Africa's delegation comprising the environment, trade and public enterprises ministers and deputy finance and foreign ministers told the Western climate envoys on Tuesday that the financial support should include concessional and grant funding which takes into account current fiscal constraints.

The environment department cited repurposing retiring coal plants, investment in low-carbon power generation and grid infrastructure, and electric vehicle manufacturing as goals.

This week, consultancy Meridian Economics proposed a new funding model for the shift away from coal that it said could unlock billions of dollars of cheap financing.

It would involve the government taking out long-term debt, with the effective borrowing cost lowered either by wealthy nations guaranteeing the debt or South Africa receiving cash incentives for its emissions reductions.

A portion of the money raised would be earmarked for a fund to support thousands of workers losing jobs in coal plants a political headache for a government that needs union support. -Nampa/Reuters

Discussions
Spell checking: Press the CTRL or COMMAND key then click on the underlined misspelled word.

No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »