South Africa’s donor-funded climate program has utilized just over a sixth of its allocated $11.6 billion, focusing on expanding the power grid and preventing decline in its coal-mining region during the transition to renewables. About $1.9 billion has been spent, with half going towards policy-based loans to the government.
Of the remaining funds, around $488 million has been allocated to electricity projects, with the rest going towards revitalizing the coal belt province of Mpumalanga, establishing a green hydrogen hub, and providing skills training. Several countries, including Britain, France, Germany, the EU, US, Denmark, Canada, Spain, the Netherlands, and Switzerland, have pledged a total of $8.5 billion at the COP26 climate talks in 2021.
However, due to the program’s complexity, involvement of multiple donors, and South Africa’s internal politics, progress has been slower than anticipated. It has been acknowledged that South Africa may not meet its 2030 emissions reduction targets, with German officials expressing concerns about the pace of the transition away from fossil fuels.
