South African minister backs away from climate finance offer

South Africa is reluctant to tap billions of dollars in climate finance offered by some of the world’s richest nations because of the cost and strings attached, Electricity Minister Kgosientsho Ramokgopa said.

South Africa clinched a deal, known as the Just Energy Transition Partnership and initially worth $8.5 billion, at the COP climate summit in Glasgow in 2021.

Under the accord, the country would receive funding in exchange for cutting coal-fired power generation in one of the world’s most carbon-intensive economies.

The funds were set to come in the form of grants, loans and guarantees from France, Germany, the US, UK and the European Union. Finance from the World Bank and other development finance institutions was also on offer.

Since then, South Africa has said it will miss deadlines to close coal-powered plants as it’s concerned about energy security.

Politicians including Ramokgopa have repeatedly expressed concern about the conditions under