South Africa, the world’s 12th largest emitter of greenhouse gases, has pledged to more than double its climate financing to meet its emissions reduction targets by 2030 and 2050. According to a study by the Presidential Climate Commission, the country needs to invest 334 billion rand ($18 billion) annually to reach net zero carbon emissions by mid-century, and 535 billion rand ($29 billion) to reduce its emissions by 22-33% by 2030, compared to 2010 levels.
The study, published on the commission’s website, maps the sources and uses of climate finance in South Africa and identifies the gaps and opportunities for mobilising and scaling up funding for low-carbon and climate-resilient development. It shows that domestic sources accounted for 91% of the tracked climate finance, while international sources contributed 9%. The study also highlights the potential of green bonds, carbon taxes, and public-private partnerships to leverage more climate finance.
South Africa’s updated climate commitment, submitted to the UN in September, is considered more ambitious than its previous one in 2016. The country aims to limit its emissions to between 350 and 420 megatons of carbon dioxide equivalent by 2030, bettering a target set in 2015 of emitting between 398 and 614 megatons by that date. The country also intends to achieve net zero carbon emissions by 2050, in line with the Paris Agreement goal of limiting global warming to 1.5°C.
However, the country faces several challenges in transitioning to a low-carbon economy, such as its heavy reliance on coal, its high unemployment rate, and its vulnerability to climate impacts such as droughts, floods, and wildfires. The study calls for a just transition that ensures social justice, economic development, and poverty eradication while addressing the climate crisis.
The study also urges the international community to fulfil its climate finance obligations and provide adequate and predictable support to developing countries like South Africa. According to the UN, developed countries have fallen short of their pledge to mobilise $100 billion per year by 2020 to help developing countries cope with climate change.
South Africa is hosting the 28th Conference of the Parties (COP28) to the UN Framework Convention on Climate Change in 2024, where it hopes to showcase its climate leadership and push for more global action and cooperation. The country is also working on a national climate change adaptation strategy and a just transition framework to guide its climate policies and actions.
The study concludes that South Africa has the opportunity and the responsibility to become a global leader in climate finance and to demonstrate how a just transition can be achieved in a developing country context. It also states that climate finance is not only a cost, but also an investment that can generate multiple benefits for the environment, the economy, and the society.
Source: Bloomberg
