South Africa’s $8.5 bn plan to exit coal offers template for green shift
South Africa and its investment partners launched an $8.5 billion plan to shift from coal toward green energy at the COP27 climate summit, in a potentially landmark deal for the transition away from fossil fuels.
The Just Energy Transition Plan — backed by the UK, US, France, Germany and the European Union — is seen as a blueprint for other coal-dependent developing nations to cut greenhouse gas emissions. The plan for South Africa envisages 90% of the funds being used to decommission coal-fired power plants in tandem with developing renewable energy generation and strengthening grid infrastructure.
It marks a breakthrough in bringing middle-income countries, which are often highly-indebted and lack a green regulatory framework, on board with efforts to keep global warming to 1.5 degrees celsius.
