South Africa secures funding to transition from coal energy

By Vumani Mkhize

The UK, US, France, Germany and the EU have announced an $8.5bn (£6.2bn) deal with South Africa to help finance its shift from coal energy.

South Africa is the 12th biggest carbon emitter in the world and nearly 80% of its electricity is generated from coal.

Donor countries will mobilise an initial $8.5bn over the next three to five years through a series of grants and concessional loans.

The funds will be utilised in developing renewable energy projects in the country, and the power utility Eskom has committed to repurpose coal fired power stations due for decommissioning over the next 15 years.

Environmental lobby groups have welcomed the announcement but have called for further clarity regarding how workers and coal communities will be funded during the implementation.

This article originally appeared in BBC News.

Photo: Financial Times