SA warns that costly borrowing holding back clean energy shift

South Africa has warned that costly borrowing and shrinking international grants are holding back its shift to cleaner energy.

Speaking at the United Nations (UN) Climate Summit on the sidelines of the UN General Assembly in New York, Minister of Forestry, Fisheries and Environment David Maynier said a 550-million-dollar credit guarantee had been secured to attract private investment in electricity transmission.

But he said more international finance was needed to expand the transition while protecting workers and communities that depend on the coal economy.

Maynier told the UN Climate Summit that South Africa’s $98 billion just energy transition plan is aimed at expanding clean electricity, develop green hydrogen and build the electric vehicle industry.

He said a 550-million-dollar credit guarantee had been secured to attract private investment in the transmission grid.

But high borrowing costs and declining international grants were limiting progress.

Maynier said a new funding platform had matched R250 million in grants to nine community projects, with the potential to create up to 10 500 jobs.

He called for more climate finance to reach workers and communities affected by the transition.

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