South Africa Calls for Major Increase in Climate Finance Ahead of COP29

In preparation for the upcoming UN Climate Change Conference (COP29) in Baku, Azerbaijan, South Africa has made a strong appeal for increased climate financing commitments from developed nations. South African Forestry, Fisheries, and Environment Minister Dr. Dion George recently urged that annual funding must rise more than tenfold to meet the ambitious $1.3 trillion New Collective Quantified Goal (NCQG) for climate finance.

Funding Needs for Climate Action

The current goal of $100 billion annually, established at the Copenhagen Climate Summit in 2009 and extended through the Paris Agreement, was only first achieved in 2022, reaching $115.9 billion. However, these funds fall short of the substantial investment required to enable countries like South Africa to implement sustainable, low-carbon development projects without accruing burdensome debt.

Dr. George emphasized, “It is very complicated… Our view is that $1.3 trillion is required.” He noted the political obstacles facing developed nations in meeting these targets, making it essential for countries to make clear commitments about their contributions.

Transition from Fossil Fuels: Urgency for COP29

As nearly 200 countries committed to shifting from fossil fuels to renewable energy at COP28 in Dubai, South Africa has positioned itself as a key advocate for increased climate financing to support this transition. In 2023, former DFFE Minister Barbara Creecy championed this move, stressing the need for a “just, orderly and equitable” transition to reach net-zero emissions by 2050.

The commitments involve a global 43% reduction in greenhouse gas emissions by 2030, which necessitates tripling renewable energy capacity, enhancing energy efficiency, phasing out coal, and eliminating fossil fuel subsidies. But achieving these ambitious goals requires significant financial resources that have yet to be fully mobilized.

Addressing South Africa’s Just Energy Transition Partnership

South Africa’s $8.5 billion Just Energy Transition Partnership, launched at COP26, seeks to help the country’s transition to greener energy. However, progress has been slow, leading funders from the UK, US, and EU to express concern. Although the funding amount was expanded to $11.5 billion, only $350 million is grant money, with the majority provided as loans.

To integrate renewable energy into its grid, South Africa needs an advanced transmission infrastructure, a critical step toward sustainable development. Last year, Eskom managed only 74 km of the 1,400 km transmission line goal due to financial constraints, illustrating the pressing need for cohesive and accessible financing.

A New Framework for Climate Finance at COP29

Dr. George and other South African leaders see COP29 as a pivotal opportunity to secure large-scale, predictable, and accessible financing for developing countries. By advocating for grants and highly concessional funding, South Africa aims to accelerate clean energy investments while preventing potential debt burdens for developing nations.

Crispian Olver, deputy chairperson of the Presidential Climate Commission, stressed the importance of a unified financial strategy to ensure that developing countries can reach their climate targets effectively. With increased financial commitments, COP29 could set a new precedent for climate finance that supports ambitious climate actions worldwide.