South Africa’s efforts to shift towards a low emissions economy have been strengthened by the conclusion of the negotiations for a R7.6 billion loan for the implementation of the country’s Just Energy Transition Plan (JETP) by the Agence Française de Développement (AFD). This innovative policy-based financing, the largest ever on AFD’s balance sheet, was developed in close collaboration with the JET Programme Management Unit (JET-PMU) in the Presidency and National Treasury to support the just dimensions of the Just Energy Transition (JET), maximising the social outcomes of the energy transition for local communities. This loan builds on the €300 million public policy loan provided in 2022, bringing France’s total contribution to the JETP to €700m out of the €1 billion pledged at COP26 (United Nations Climate Change Conference) in Glasgow. “The partnership with the AFD presents an opportunity for South Africa to make progress in addressing practical issues of jobs, skills, social support, and governance. South Africa’s Just Energy Transition programme is designed to ensure that the livelihoods of communities that are tied to carbon-intensive energy sources, such as coal, are not left behind in the transition to a low-emission economy, and that the energy transition is fair.

Source: The North Africa Journal November 15, 2024 14:59 UTC