A leaked summary shows Germany and France are providing cheap loans while the UK is making the biggest contribution to mobilise private finance Around 97% of the $8.5 billion package rich countries are offering South Africa to shift from coal to clean energy is set to be delivered as loans.
That can be seen in a summary of the financing provisions obtained by Climate Home News.
It shows that $4.6bn – 54% of the funding – is earmarked as concessional loans, with better borrowing terms than South Africa can access on the open market. Just under half of that money is provided by Germany and France.
The remaining $3.7bn, or 43%, include a mix of commercial loans and investment guarantees to de-risk projects so they attract private investors. These will come from the EU, US and the UK, which is contributing the largest share.
Only $230m will be delivered collectively by donor…
Who is contributing what to South Africa’s clean energy shift?
