Ramaphosa secures a billion-dollar COP26 green finance deal

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Staff Writer
  • President Cyril Ramphosa has arrived in Glasgow, Scotland, to attend the United Nations Climate Change Conference, often known as COP26.
  • The pact calls for the countries to contribute $8.5 billion (R131 billion) to South Africa.
  • The cash raised as a result of this collaboration will be used to invest in renewable energy as well as the development of other businesses such as electric vehicles and green hydrogen.
  • According to the President’s office, this will greatly improve investment and growth while guaranteeing that Eskom has access to money to finance the repurposing of coal-fired power plants that are scheduled to be decommissioned over the next 15 years.

President Cyril Ramphosa has arrived in Glasgow, Scotland, to attend the United Nations Climate Change Conference, often known as COP26. The President of South Africa has achieved a historic collaboration with the governments of France, Germany, the United States of America, the United Kingdom, and the European Union to aid South Africa in its transition to a low-carbon economy. The pact calls for the countries to contribute $8.5 billion (R131 billion) to South Africa.

The Cop26 is the United Nations Framework Convention on Climate Change’s 26th Conference of the Parties (COP) and the third meeting of the Paris Agreement’s parties. The COP’s major purpose is to place the world on a course to aggressively decrease greenhouse gas emissions and limit global warming.

South Africa submitted a revised Nationally Determined Contribution (NDC) prior to the COP26, stating the country’s target of lowering domestic carbon emissions by 420 CO2-eq to 350 CO2-eq by 2030. The objective is consistent with the lofty aims of the Paris Agreement.

In a Political Declaration issued today in Glasgow, partner countries promised to raise an initial 8.5 billion (R131 billion) over the next 3-5 years. The monies will be distributed through a variety of vehicles, including grants and concessional financing, to aid in the implementation of the amended NDC.

The cash raised as a result of this collaboration will be used to invest in renewable energy as well as the development of other businesses such as electric vehicles and green hydrogen. According to the President’s office, this will greatly improve investment and growth while guaranteeing that Eskom has access to money to finance the repurposing of coal-fired power plants that are scheduled to be decommissioned over the next 15 years.

President Ramaphosa has welcomed the collaboration, noting that South Africa is ready to contribute to addressing the issue of climate change. The President further noted that this collaboration was a watershed moment for the entire world to take actions to reduce global emissions in order to tackle climate change.

“Climate change is an existential threat to all of us, and South Africa is committed to doing its share to reduce global emissions.” The collaboration that we have formed today is a watershed moment not only for our own just transition, but for the entire planet. It demonstrates that with the help of developed economies, we can take ambitious climate action while boosting our energy security, creating jobs, and leveraging new investment opportunities.” President Cyril Ramaphosa stated.

Staff Writer

Published by
Staff Writer