According to two sources with knowledge of the situation, South Africa has presented an investment strategy to donors who have pledged $8.5 billion to support the nation’s transition to renewable energy.
Speaking on behalf of the administration on Thursday, Vincent Magwenya declined to clarify whether the plan had been presented but did acknowledge that it was ready.
Before being submitted to cabinet for approval, he added, a draught of the investment plan, which details the investments necessary to fulfil South Africa’s ambitious climate ambitions, has been finalised and will be discussed with key stakeholders.
The authorities are rushing to complete the agreement before the COP27 climate meetings, which will begin on November 6 in Egypt. The initiative might serve as a template for other developing nations looking to switch from coal to renewable energy.
During the most recent climate talks in Glasgow, France, Germany, the European Union, the United Kingdom, and the United States all pledged money, most of it in the form of concessional loans, to help South Africa transition from coal to renewable energy.
South Africa must demonstrate that its plan will lower its carbon output by more than it was planning to do in accordance with previously existing climate obligations in order to receive the $8.5 billion needed from donors.
However, it is anticipated that switching South Africa’s economy to renewable energy will cost at least $250 billion over the following three decades.
With 430 megatonnes of CO2 emitted in 2019, South Africa ranked 12th globally in terms of carbon emissions, five places ahead of Britain, a country with an eight-times larger economy.
Currently, coal fuels account for 80% of South Africa’s electricity production. As a result, it hopes to become a manufacturing centre for environmentally friendly hydrogen and electric vehicles.
Magwenya reaffirmed the government’s stance that the deal needed to address a funding gap, although she would not specify how big it was.
Since records have been kept, South Africa has seen its worst year for power outages, with state-owned energy company Eskom, which produces more than 90% of the country’s electricity, unable to keep up with demand.
