- South Africa plans to cut emissions at coal plants to secure $2.6 billion in climate finance.
- The government delays the closure of three major plants, aiming for a 2030 decommissioning date.
- The proposal aligns with the $9.3 billion Just Energy Transition Partnership agreement signed in 2021.
South Africa pledged to cut emissions at its coal-fired power plants to secure $2.6 billion (R460 billion) in climate finance. This commitment comes as the country seeks to revise a 2022 agreement concerning the closing of three significant plants.
On October 30, the South African presidency announced its submission of a plan to reduce emissions at several units within Eskom Holdings’ 14 coal plants. The government now intends to delay the closure of the Grootvlei, Hendrina, and Camden plants, which were initially set to shut down as early as next year.
This shift follows ongoing concerns about energy security. South Africa has experienced years of severe power cuts due to Eskom’s struggles to meet demand. Although the utility has not implemented power rationing since March, the government remains cautious about the possibility of returning to widespread outages that have hindered economic growth.
The recent submission is vital to the $9.3 billion Just Energy Transition Partnership (JETP) agreement South Africa signed in 2021 with several of the world’s wealthiest nations. This agreement aims to support South Africa’s transition to cleaner energy sources.
Joanne Yawitch, head of the JETP project management unit in the presidency, stated, “Due to energy security considerations, we will only decommission the identified power stations in 2030.” She added that Eskom will implement measures to reduce emissions across its fleet alongside the planned closures.
If the CIF accepts the proposal, South Africa could secure $500 million in concessional financing from the Climate Investment Funds (CIF). With additional co-financing from development finance institutions and private investors, South Africa could access up to $2.6 billion for its energy transition efforts.
Yawitch mentioned that the CIF’s Accelerating Coal Transition Investment Program is considering the proposal. She will table it at a Clean Technology Fund Trust Fund Committee meeting scheduled for November 30. The CIF noted that the Trust Fund Committee usually publishes decisions within two to four weeks after submission, though delays might occur if the committee has specific questions.
As the world’s 15th-largest source of greenhouse gas emissions, South Africa heavily relies on coal for about 80% of its electricity generation. This reliance makes the proposed emission reductions a significant step toward addressing climate change and improving air quality.
The delay in closing the identified plants reflects the government’s challenges in balancing energy security and climate commitments. Eskom struggles to provide reliable electricity, leading to frequent blackouts that disrupt businesses and daily life. The government’s cautious approach ensures that the power supply remains stable while transitioning to cleaner energy sources.
In summary, South Africa’s latest proposal aims to secure vital climate finance while addressing the pressing issue of energy reliability. The country navigates a complex landscape of energy demands and climate commitments. The outcomes of the upcoming meetings with the CIF will prove crucial in determining the future of South Africa’s energy transition strategy.
With these actions, South Africa works to reduce its carbon footprint while ensuring that economic growth does not suffer from energy shortages. The success of this plan will depend on the country’s ability to implement effective emission reduction measures and secure the necessary funding for its energy transition.