THE R130-billion concessional climate finance green deal South Africa signed at COP26 could translate into a R500-billion boost to help South Africa’s just energy transition to decarbonise its sources of energy, says financial services firm RMB CEO James Formby.
“We are yet to see the details behind these financial commitments such as the timing and conditions, but overall we are optimistic about the potential substantial decarbonisation benefits for South Africa that will move us closer to globally accepted emission targets.”
The finance is earmarked to help State-owned power utility Eskom ultimately retire its coal-fired power fleet and assist it in contributing to the renewable energy sector, while preventing up to 1.5 gigatonnes of emissions over the next 20 years.
The initial commitment of $8.5-billion, or R130-billion, for the first phase of financing, could crowd in up to a further R390-billion of local and foreign private investor capital, says Formby.
Owing to the fairly predictable
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