COP27: 600 million euros for change in South Africa

France and Germany released an initial envelope of 600 million euros for energy transition assistance in South Africa as part of a $98 billion investment plan approved at COP27 in Egypt.

South Africa, France and Germany have signed loan agreements with both European countriesThe three countries announced in a joint statement on Wednesday.

l’South Africa Attracts 80% sound Electricity from Coal, a pillar of the economy employing nearly 100,000 people. By the end of 2030, many power plants will have to shut down. Public company EskomIn debt, aging installations are unable to produce enough electricity and impose frequent cuts.

Dynamic change

A Investment plan 98 billion dollars Dynamic change The first African Industrial Power was recognized at the UN Climate Summit earlier this week Sharm el-SheikhOpened on Sunday COP26 At Glasgow.

The Francei’GermanyThe UKthey America And thisEuropean union It pledged $8.5 billion in support with the ambition of making South Africa an example of cooperation in the fight against emissions in developing countries.

The first tranche of the aid was released by France and Germany in the form of loans from the German Public Investment Bank (KfW) and the French Development Agency (AFD). Both countries have pledged to pay South Africa one billion euros each, which would require at least $500 billion. Carbon neutral By 2050, step World Bank.

Climate action

President of South Africa Cyril Ramaphosa It has repeatedly criticized rich countries for providing aid to the poor, mainly in the form of loans.

Countries in the South will need more than $2,000 billion a year between now and 2030. Climate actionAccording to a report commissioned by the COP Presidency, almost half of this came from external investors.