South Africa in advanced talks to secure $600m climate finance loan

South Africa is seeking climate finance from German development bank KfW and the French Development Agency worth 600 million euros ($599.19 million), with negotiations at an advanced stage , said the news24 portal, citing the Treasury’s acting chief director for liability management, Wanga Cibi.

The loan is part of $8.5 billion pledged by international partners, including the UK, US, European Union, Germany and France, during COP26.

The climate finance is part of the Just Energy Transition Partnership (JETP), which will help South Africa decarbonise its coal-intensive energy sector and develop the green hydrogen and electric vehicle industry.

Germany earlier announced 355 million euros in grants and loans over the next two years.

In its policy statement, the South African Treasury said the tax policy would provide economic incentives for green energy, with the carbon tax being one of the government’s mechanisms to prevent greenhouse gas emissions. .

The Treasury said a design options paper for tax-free allowances under the carbon tax would soon be released for public comment and consultation, the newspaper said.

(Edited by Seban Scaria [email protected])

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