S. Africa Seeks Cabinet Approval for $8.5 Billion Climate Plan to Curb Coal Use

(Bloomberg) -- South Africa’s government will seek cabinet approval for an $8.5 billion plan to transition away from the use of coal to generate electricity in order to secure funding from some of the world’s richest nation.

A second draft of the investment plan has been completed and is being shared with “key stakeholders” ahead of its submission to cabinet, said Vincent Magwenya, a spokesman for South African President Cyril Ramaphosa. The development marks a significant step toward completing the pact with the funding partners -- the UK, US, Germany, France and the European Union -- which was first announced at the COP26 international climate summit in Glasgow last year.

The plan “outlines the investments required to achieve South Africa’s ambitious climate targets,” Magwenya said in a response to a query. “The objective remains to complete this process by COP27,” which will take place in Egypt in November, he said.

South Africa’s landmark climate finance deal has been hailed as a prototype for helping other coal-dependent developing countries transition to cleaner energy, with Indonesia and Vietnam among nations in line for a similar deal. Its fate could have a knock-on effect at COP27, which is set to focus on the needs of poorer nations adapting to global warming.