The government is concentrating on creating a thorough South African-led investment plan that outlines the investments necessary to accomplish an equitable energy transition and serves as a financial management tool.
According to Daniel Mminele, the head of the Presidential Climate Finance Task Team, and John Murton, the chair of the International Partners Group and the COP26 envoy for the United Kingdom, they hosted a joint media briefing in Pretoria to provide an update on the progress being made to complete the Just Energy Transition Partnership (JETP).
“We are also working to come to a finance package arrangement that satisfies our investment requirements and is consistent with our fiscal structure.
Our goal is to complete an investment plan in time for COP27 in November 2022, which is our target, Mminele said on Wednesday. “Intensive work is now happening on both of these areas.
The United Kingdom, along with the European Union, France, Germany, and the United States, committed to mobilize an initial sum of $8.5 billion over the following three to five years to support the realization of South Africa’s ambitious Nationally Determined Contribution through the Political Declaration issued in November 2021 to establish this partnership (NDC).
“There is a shared understanding of the need to make sure that the financing packages approved are appropriately structured to support South Africa’s climate ambitions and priorities in the engagements that we have had with the international partners thus far.
We have made it plain that the funding tools must take into account the particular requirements and fiscal difficulties of South Africa, as well as include suitable and equitable risk-sharing arrangements, Mminele said.
This involves making sure that any loan financing has terms that are much more favorable than what could be obtained on the capital markets.
We must prioritize job creation and make sure that no one is left behind in this process, it is also imperative.
The investment plan will highlight the need for a just transition and support for affected workers and communities while also identifying critical projects that will be launched before COP27, according to Mminele.
The collaboration also acknowledges the necessity for ongoing coordination to raise an initial sum of $8.5 billion over the course of the next three to five years in order to support South Africa’s ambitious NDC.
He added that the fact that a delegation of ministers from the South African government, representatives from pertinent departments, Eskom, and local financing instruments met with COP President Alok Sharma “demonstrated that we are fully committed to the partnership and determined to its success.”
The discussion at the conference on Tuesday focused on the advancement of the JETP as a groundbreaking project to support South Africa’s transition to a low carbon economy and a climate resilient society following COP26.
According to Mminele, this alliance gives the nation the chance to grow the economy, create jobs, and combat the threat of climate change all at once.
The COP President and Ministers reaffirmed their shared dedication to a just transition that safeguards affected workers and communities as a top priority of the partnership and to fostering opportunities for innovation and high-quality employment, including in the green hydrogen and electric vehicle sectors.
The South African Presidential Climate Finance Task Team (PCFTT) and the International Partners Group (IPG) provided an overview of the advancements made toward the creation of an enabling policy environment to support South Africa’s NDC, as promised in the Political Declaration.
These advancements include the introduction of a Climate Change Bill in Parliament and ongoing reforms in the electricity sector.
Additionally, the Presidential Climate Commission provided an update on its work on the Hydrogen Economy Roadmap, the Renewable Energy Masterplan, and the creation of a framework for a just transition.
“It also describes the actions that have been taken to set up governance and implementation structures for the partnership, such as the appointment of an independent technical secretariat, headed by Joanne Yawitch, and the impending creation of working groups concentrating on the transportation, green hydrogen, and electricity sectors. It also discusses financing and implementation modalities.
Finally, it affirms the partners’ commitment to complete a thorough Investment Plan and to continue talking about the finance package in order to enable significant progress by COP27, Mminele said.