THE African Development Bank (AfDB) has suggested a plan to South Africa that will help the nation use the $8.5-billion in climate financing pledged by some of the world’s richest nations to raise even more funds.
The AfDB has recommended that South Africa park the funds in a special purpose vehicle, bank President Akinwumi Adesina. The SPV, which can seek a credit rating, can sell zero-coupon bonds to raise as much as $41-billion, Adesina said in an interview Thursday in Bloomberg’s New York office.
The US, UK, Germany, France and European Union plan to provide $8.5-billion to South Africa to help the country cut its use of coal, which is used to generate more than 80% of its electricity. The world’s 13th-biggest producer of greenhouse gases will need to spend $250-billion over the next three decades to fund the closing down of coal-fired power plants, develop green energy sources and an
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