South Africa, under G20 presidency, prioritizes climate finance for developing nations seeking to transition to a low-carbon economy. President Ramaphosa addresses funding shortfalls due to U.S. aid cuts, emphasizes the need for significant financial support in line with Paris Agreement goals, and advocates for local benefits from Africa’s critical mineral reserves.
This year, under President Cyril Ramaphosa’s leadership, South Africa’s G20 presidency is set to prioritize climate finance, particularly for developing nations aiming for a low-carbon economy. This initiative is critical given the United States’ recent cuts to international aid, raising concerns about a potential funding deficit for clean energy projects. At the G20 finance ministers and central bankers meeting held in Cape Town, Ramaphosa emphasized the necessity of significantly increased funding to align with the Paris Agreement objectives in an equitable manner.
South Africa is the first nation to establish a Just Energy Transition Partnership (JETP), aimed at aiding its accelerated transition from coal to cleaner energy sources. Despite this initiative launched during the 2021 UN climate conference, South Africa has encountered challenges in securing the necessary financial resources. JETPs are designed to unite financial contributions from various stakeholders, including governments and private sector entities, to develop renewable energy projects that also benefit local populations.
Concerns linger regarding U.S. funding reductions and similar trends in Europe, where some countries are reallocating development funds to military budgets. This is impacting global climate finance, as major energy enterprises shift investments from renewables to fossil fuels. Since 2018, global climate financing has increased; however, its distribution remains uneven, with Africa receiving less than five percent of total funds.
In preparation for the upcoming COP30 climate talks in Brazil, South Africa aims to encourage G20 members to establish ambitious climate targets. Ramaphosa calls for enhanced concessional and grant funding to support energy transitions in developing economies amidst increasing climate-related disasters like droughts and floods. He also advocates for the development of carbon markets to mitigate climate change effects.
Furthermore, Ramaphosa stresses the necessity of capitalizing on Africa’s vast reserves of critical minerals, essential for the energy transition, to bolster economic growth and reduction in carbon emissions. Although Africa holds about 30% of the world’s critical mineral reserves, it only captures 3% of global energy investments annually. Ramaphosa asserts that local communities and countries rich in these resources should reap the most benefits as mining accelerates to meet energy transition needs.
In summary, South Africa’s G20 presidency prioritizes vital climate finance for developing nations amid U.S. funding cuts. Emphasizing just transitions from coal and the need for equitable funding, Ramaphosa advocates for critical mineral utilization to support growth and resilience against climate impacts. The efforts aim to enhance global climate actions leading up to COP30 in Brazil.
Original Source: www.usnews.com
