Ahead Of COP27 Summit, South Africa Unveils $84bn Plan To Shift From Coal To Clean Energy

President Cyril Ramaphosa presented the 2023-2027 investment plan that stated South Africa would need 1.5 trillion rands ($84 billion) to shift from coal to green energy.

Interestingly, the revelation comes just days before the COP27 summit in Egypt.

Ramaphosa said that the fund is required to support the plan over the next five years to reduce carbon emissions, take advantage of economic opportunities arising from the energy transition, and help affected communities.

The over 200-page plan is a guide for transitioning the economy from fossil fuels to renewable energy, to address issues such as poverty and the climate crisis. In a speech given to his presidential climate commission on Friday, Ramaphosa called the plan a "blueprint" for change that would improve the quality of life for South Africans.

"By releasing this plan, we are placing the ball firmly in the court of the international community, particularly the developed economy countries, that have through their industrialization contributed greatly to the damage of our climate," Ramaphosa said.

He further added that the plan would help create jobs, reduce pollution, and make the country more resilient to the effects of climate change.

The COP26 climate summit, which took place last year, resulted in wealthy nations, including the United States, Britain, France, Germany, and the European Union, committing $8.5 billion to help Africa's most industrialized nation cut its emissions and transition away from coal power.

However, the investment plan presented by President Cyril Ramaphosa on Friday revealed that the government believes that far more money is needed.

President Ramaphosa has said that the funding South Africa requires to meet its climate goals is significantly higher than what has been offered. "In going to COP27, that is the message we will be taking forward," he said.

He also pointed out that South Africa was reaching out to foreign partners to look for extra sources of funding and called for more grant money to be included in pledges of support.

ZAR 1trn ($57bn) or around 70%, is earmarked for decommissioning the country's aging coal fleet, deploying renewable energy at scale, and modernizing the grid. This is a huge investment that will have a significant impact on the country's energy sector.

It will help phase out coal-fired power plants and replace them with cleaner, more efficient renewable energy sources. It will also modernize the electricity grid, making it more reliable and efficient. This is a positive step forward for the country's energy sector and will help to reduce emissions and improve air quality.

The Mpumalanga region of South Africa is abundant in coal reserves and has long been a major contributor to the country's economy. However, with the increasing popularity of renewable energy sources, the future of the coal industry is uncertain. To create greener job opportunities for workers in the region, the government has targeted ZAR 60.4bn ($3.4bn) towards initiatives that will encourage the growth of the renewable energy sector.