South Africa receives US$ 8.5 billion for phasing out coal

Announcement of new partnership between South Africa and developed countries

On Tuesday, the second of November 2021, South African President Cyril Ramaphosa announced a new partnership with Germany, France, the UK and the US to combat climate change. The partner countries will support South Africa in its plan to move away from coal and towards a low-carbon economy.

The partnership was announced at COP26 in Glasgow, Scotland, where countries came together to discuss a wide range of issues to tackle the climate crisis.

Goals of the partnership

Part of a just transition to a low-carbon economy is the gradual closure of coal-fired power plants without putting workers in the industry out of work.

To consolidate the partnership, partner countries will initially provide USD 8.5 billion (ZAR 131 billion) over the next three to five years to support the implementation of South Africa's revised NDC (Nationally Determined Contribution). The support will be delivered through a range of instruments, including grants and concessional funding.

The NDC sets out South Africa's plans to meet climate targets, reduce greenhouse gas emissions, and provide clear policies and measures to be implemented for a just transition to a low-carbon economy. It is expected that the funds mobilised through this partnership will accelerate investments in renewable energy and the development of new sectors such as electric vehicles and green hydrogen.

EnergyRenewablesSouth africa