WATCH | SA’s COP26 climate finance deal is its last best hope

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Unreliable coal power system is inhibiting economic growth and the country needs help to make transition

Finance is the key to solving climate change, so it is no surprise the issue has topped the agenda at the UN climate change conference, COP26.

The countries pledged to provide SA with R131bn over the next three to five years to fund a just transition, which includes protection mechanisms for workers in the coal sector. The funding will be provided through a combination of low-interest concessional finance facilities, grant funding and other risk-sharing instruments.

While this provides new funding for Eskom, the deal will not address the state-owned utility’s legacy debt burden. “Don’t forget that between 85% and 90% of this will be concessional funding and will have to be paid back,” Montalto said. “Because our renewable energy resources are so good, the economics of a transition away from a dependency on coal is very viable,” he said.

 

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