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<\/a><\/p>\nMeanwhile talks between India and the US and Germany \u2014 representing the EU \u2014 haven\u2019t progressed significantly, according to people familiar with the discussions. Any commitment could end up being a bilateral arrangement rather than a multilateral one, two of the people said. A coal shortage that\u2019s led to power cuts are a hurdle, one of the people said.<\/p>\n
The Indian government has also chafed at being \u201ctalked down to\u201d by Western countries that have offered more studies than concrete solutions, another person said. India\u2019s foreign ministry didn\u2019t respond to questions.<\/p>\n
As for the South Africa deal, major elements of the financial package are still being developed six months after the agreement was signed. Finer points about\u00a0how the money will be spent\u00a0have yet to be confirmed, including how much will go to heavily indebted utility Eskom Holdings SOC Ltd., how communities will be compensated and how any loans will be structured.<\/p>\n
Technical details are now being worked out to determine the contours and scale of financing, with one goal being that it enables the government to escape long-term pressure tied to Eskom\u2019s debt, a U.S. Treasury official said. When the deal was announced last year, South Africa hadn\u2019t designated a lead negotiator and Eskom\u2019s participation was unclear, among the many steps needed to turn the declaration into a final plan,\u00a0the official said.<\/p>\n
The country has since appointed Daniel Mminele, a former South African central banker, to lead the talks. He said that \u201cwork is progressing well\u201d and the focus over the next few weeks will be on \u201cassessing the detail of the funding elements relative to South Africa\u2019s needs and priorities.\u201d<\/p>\n
Though there is still a chance that a broad agreement in principle will be reached for Indonesia before the G-20 meeting in Bali in November, some activists and insiders are more optimistic about the prospects for a pact with Vietnam at this point. The country has a smaller coal industry and more potential for wind energy, one person said. Officials with Vietnam\u2019s Ministry of Industry and Trade were unavailable for comment.<\/p>\n
The European Commission confirmed it is exploring energy transition partnerships with Vietnam, India and Indonesia. \u201cA first progress review will be conducted before the summer, in good time before COP27,\u201d a spokesperson said.<\/p>\n
U.S. Special Presidential Envoy for Climate John Kerry said work was underway on Indonesia and the South Africa talks were moving forward. \u201cWe\u2019ve mobilized some funding to help deal with Eskom \u2014 bail out the Eskom problem of South Africa and be able to help them transition,\u201d he said at the Global Electrification Forum hosted by the Edison Electric Institute on April 25. \u201cIn Indonesia, they don\u2019t have an Eskom problem, but they do have sort of a break-the-status-quo\u201d challenge, he said.<\/p>\n
Negotiations are ongoing at high levels. U.S. Treasury Secretary Janet Yellen has met with finance ministers from South Africa and Indonesia, a sign of the seriousness of the effort, which\u00a0might otherwise be the domain for energy and environmental ministers.<\/p>\n
The outcome of the talks will have significant consequences for the success of COP27. Striking deals with larger developing countries could lead to similar arrangements to help\u00a0smaller and more climate-vulnerable nations.<\/p>\n
The South Africa plan \u201cprovides a good model to build on here,” said Brendan Guy, lead strategist with NRDC’s international climate program. “But the question really is, can similar packages be tailored for the unique needs of countries like India, Indonesia, Vietnam and others to really help them accelerate the move past coal?”<\/p>\n
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