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Agreement to fund South African energy transfer at COP26

Agreement to fund South African energy transfer at COP26

Several countries at COP26 on Tuesday announced an initiative to mobilize up to $ 8.5 billion to fund the energy shift in South Africa, which is heavily dependent on coal.

This was completed by Johannesburg by Germany, the United States, France, the United Kingdom and the European Union “International partnership for a fair energy transition”. “It will mobilize an initial commitment of $ 8.5 billion for the first phase of financing, thanks to various mechanisms including grants, concession loans, investments and risk-sharing instruments, in particular to involve the private sector”, the parties said in a statement. These amounts must be given “In the next three to five years”.

“National contribution”

The agreement, which has a technical assistance component, should in particular concern the transformation of the electricity system, which is now heavily dependent on coal, “Helping the country achieve ambitious emissions targets” that Johannesburg was included before the COP in its new program “National contribution”, instrument of participation of countries under the Paris Agreement.

“Climate change is an external threat to all and South Africa is committed to playing its part in reducing global emissions. This partnership is point (…) proof that we can take ambitious measures for the climate and increase our energy security, create jobs and seize investment opportunities, with the support of developed countries ”, welcomed South African President Cyril Ramaphosa in a statement issued by the South African Presidency.