South Africa, the world’s 12th-biggest emitter of greenhouse gases, depends on coal to generate most of its electricity.
It will receive a range of funding, including grants and concessional finance, to accelerate investment in renewable energy and the development of green hydrogen.
The plan will involve closing South African coal stations ahead of schedule, Joe Biden told reporters at the Conference of the Parties (COP).
The partnership also includes France, Germany and the European Union.
US President Joe Biden said he’s offering an alternative to China’s plan to build infrastructure in countries that are among the most vulnerable to climate change. At the same time, his special envoy, John Kerry, sees finance pledges approaching the $100 billion annual target.
Much of the focus of Day Two at COP26 in Glasgow is on aid to developing nations, with a separate push for more private sector money for the energy transition.
South Africa submitted a revised Nationally Determined Contribution (NDC) to reduce domestic carbon emissions to within a target range for emissions of between 420 CO2-eq and 350 CO2-eq by 2030.
“This revised target is compatible with the ambitious goals of the Paris Agreement and represents our country’s best effort to confront climate change,” Ramaphosa said. “The initial R131 billion will support the implementation of our revised NDC.”
One of the resolutions of the “Political Declaration on the just energy transition in South Africa” is to establish an inclusive task force comprised of South African and international partners.
This task force has set deadlines to meet over the next 12 months, with its first set of commitments deliverable within six months.
Within a calendar year, the task force must:
Develop a complete programme of work for this partnership based on an investment plan for the just energy transition of the South African government, including support to address the social and economic impacts.
Provide a leaders’ level update to review progress.
Identify potential financing instruments and policies that will act to improve Eskom’s long term financial sustainability.
Work to address South Africa’s longer-term funding needs to lower emissions across all sectors of the economy.
Identify how to leverage further financial resources, including domestic resources, to that effect.