- South Africa needs at least R1.4 trillion over five years for Energy Transition.
- International communities pledged R140 billion to support the just transition in 2021.
Presidential spokesperson Vincent Magwenya stated that South Africa would need funding in the form of grants to implement the Just Energy Transition.
Magwenya revealed that South Africa would need at least R1.4 trillion over five years to transition from high to low carbon emissions.
The grant will need to come from various sources, including the funding that industrialised countries have promised to developing countries and from commercial, financial institutions. At the UN Climate Change Summit last year, France, Germany, the UK, the US and the European Union pledged around R140 billion to support the just transition. In addition, an initial amount of R10.7 billion has been received in low-interest loans from Germany and France.
He added, “While South Africa welcomes low-interest (or concessional) loans, a substantial portion of this funding needs to be in the form of grants. The move towards lower carbon emissions is imperative as the toll will begin to weigh heavily on South Africa’s economy.
The spokesperson further emphasised the government’s position that a Just Energy Transition must bear in mind the socioeconomic consequences of moving towards lower carbon emissions.