A World Bank-linked climate fund has backed South African plans to cut its reliance on coal, unlocking up to $2.6 billion (R47 billion) in financing and giving the nation\u2019s energy transition an unexpected boost.<\/p>\n\n\n\n
The approval of the updated plan by the Climate Investment Funds, which was stalled after South Africa last year asked to delay the closure of three coal-fired power plants to ease an energy crisis, will see the CIF disburse $500 million to the country.<\/p>\n\n\n\n
That clears the path for as much as $2.1 billion from multilateral lenders including the World Bank and the African Development Bank, plus other sources.<\/p>\n\n\n\n
\u201cCIF\u2019s Clean Technology Fund Trust Fund Committee approved an update to South Africa\u2019s Accelerating Coal Transition investment plan\u201d on June 11, the fund said in a response to queries. <\/p>\n\n\n\n
Under the plan, it said South Africa can now put forward detailed costing for projects it had outlined and then get approval for their funding from the trust. It referred additional questions on financing to the South African government, which confirmed that the plans are still in place.<\/p>\n\n\n\n
The financing will play an important role in South Africa\u2019s energy transition. The country relies on coal for about 80% of its electricity generation and has the most carbon-intensive economy of any country in the Group of 20. <\/p>\n\n\n\n
The decision also rescues support that looked to be in peril after South Africa, back around September, asked to alter the plan, which had originally been endorsed in 2022. <\/p>\n\n\n\n
That request delayed approval until after the Jan. 20 inauguration of US President Donald Trump and subsequent pullback by America from a range of international climate initiatives. The actions of US representatives then thwarted an opportunity to support the South African plan in March, people familiar with the situation said<\/a> at the time.<\/p>\n\n\n\n