South Africa needs much more money to green its economy than what rich countries have promised so far, President Cyril Ramaphosa said on the eve of a key global climate summit, UNN reports citing AFP.
Last year, South Africa, the continent’s most industrialized economy, received $8.5 billion in loans and grants from a group of wealthy countries.
But Ramaphosa said the money was not enough. A transitional investment plan was released on Friday, calling for Pretoria to need about R1.5 trillion ($83 billion) over the next five years.
His comments come after the World Bank said earlier this week that South Africa needs about $500 billion by 2050 to achieve carbon neutrality.
Ramaphosa said South Africa is working with international partners to seek additional funding, adding that some countries have already indicated they are ready to make new proposals.
The President added that during negotiations with other leaders, he noted the need to increase the share of grants so as not to increase the already heavy debt burden of the country.
Key industries in need of investment include the power and clean hydrogen sectors, as well as just transition initiatives, Ramaphosa said.
South Africa, one of the 12 biggest polluters in the world, generates about 80% of its electricity from coal.
The World Bank said on Friday that $497 million in funding has been provided to the country to decommission one of its largest coal-fired power plants and convert it to renewable energy.
This month, in the resort town of Sharm el-Sheikh, the world’s leading leaders will meet for the COP27 climate summit.