Call for innovative solutions for second-life battery inventory systems

E-waste is the world’s fastest-growing and most valuable domestic waste stream[1]. According to the World Health Organisation, it is estimated that Nigeria generated N64.2 billion worth of electronic waste in 2019 and ranks second in Africa after Egypt[2]. This leaves the country in desperate need to take the disposal and treatment of electronic waste seriously, to safeguard the environment and public health[3].

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DBSA and EIB announce EUR400-million SA renewable energy initiative

The Development Bank of Southern Africa and the European Investment Bank announced the launch of a EUR 400 million South Africa renewable energy investment initiative during a signing at COP27. 

  • EIB and DBSA to boost private sector solar and wind investment across South Africa
  • Embedded Generation Investment Programme expected to deliver 1 200 MW green energy generation and replace 3.6 million tonnes of CO2 emissions
  • New renewable energy to create hundreds of jobs across South Africa during construction and operation

For South Africa, like many African countries, climate change is a measurable threat that poses significant social, economic and environmental risks and challenges. There is a dire need for South Africa to balance the acceleration of economic growth and transformation with sustainable infrastructure development in response to climate change.  

As such, DBSA and EIB have come to an agreement on unlocking EUR 400 million for private-sector renewable energy investment in South Africa that will back a new targeted financing program.  

11 November 2022 – Today at COP27 in Sharm El Sheikh, Vice-President Ambroise Fayolle of the European Investment Bank (EIB) and CEO Patrick Dlamini of the Development Bank of Southern Africa (DBSA) formally agreed EIB financing in South Africa that will back a new targeted financing programme to unlock EUR 400 million for private sector renewable energy investment across South Africa.

The EUR 400 million initiative (7.2 billion ZAR equivalent) will be backed by EUR 200 million from the EIB and provide financing for a range of new renewable energy projects across South Africa.

The scheme will help to increase clean energy power generation and contribute to DBSA’s Embedded Generation Investment Programme (EGIP), that is co-financed by the Green Climate Fund. The new initiative is expected to generate an additional 1200 MW of generating capacity and avoid 3.6 million tonnes of CO2 emissions once all the supported projects are operational.

The projects it will finance are expected to create hundreds of new jobs during construction and operation and support local companies.

DBSA CEO Patrick Dlamini commented: “The Development Bank of Southern Africa has a clear goal to increase investment in renewable energy and improve energy security, not only in South Africa but across the African continent. South Africa, like many African countries, is already suffering the effects of climate change. This new investment from the EIB in our Embedded Generation Investment Programme is an important contribution to South Africa’s resilient and sustainable growth.”

EIB Vice-President Ambroise Fayolle added: “As the EU Climate Bank, the EIB is committed to supporting South Africa’s efforts to decarbonise and today’s agreement of the largest ever EIB investment in South Africa follows past support for renewable energy and climate adaptation projects across the country. EIB Global is pleased to build on three decades of partnership with DBSA to boost renewable energy generation which will contribute to energy security and a just transition in South Africa. The EIB is stepping up our efforts to support green energy projects globally, with a special focus on Africa and economies dependent on carbon intensive activities that are vulnerable to the impacts of climate change.”

DBSA Embedded Generation Investment Programme

DBSA’s Embedded Generation Investment Programme (EGIP) supports the development and upscaling of solar photovoltaic and wind renewable energy embedded generation projects, developed by independent power producers operating in South Africa. Embedded generation is the production of electricity from smaller-scale power stations and usually defined as projects that are planned for their own use. EGIP offers a credit support mechanism through the provision of risk capital.

Cheaper solar, onshore wind and energy efficiency

The financing will be available for renewable energy projects – solar photovoltaic and onshore wind energy generation – and potentially also energy efficiency projects promoted by the private sector in South Africa. These projects are expected to provide a reliable source of energy for South Africans at a lower cost than fossil fuel alternatives. The EIB facility complements the Just Energy Transition Partnership with South Africa, which focuses on support to the public sector.

EIB-DBSA partnership

This new operation builds on a long-standing successful partnership between EIB and DBSA going back to 1995, when the EIB first started working in South Africa. Since then, the EIB and DBSA have worked together on 11 projects, including a climate action facility that is currently being implemented, but also supporting municipal infrastructure such as for water, sanitation and education.

EIB at COP27

The EIB has a pavilion in the side event area of the blue zone and is running a series of events on numerous topics. You will find the full agenda here. You are welcome to join our virtual attendee hub to watch the sessions either live or later at your convenience, and network with attendees. With an easy two-step registration process, you will always have the latest information on our agenda.

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Africa’s first integrated green hydrogen plant

Egypt Green, which is owned, built, and operated by Fertiglobe, Scatec ASA, Orascom Construction and The Sovereign Fund of Egypt, marks an important milestone in the development of a green hydrogen ecosystem in Egypt and the broader African region.

Sharm El Sheikh, Egypt, 8 November 2022

  • Today marks the start of the commissioning of the first phase of the green hydrogen plant in Ain Sokhna, Egypt, during an event at COP27 attended by Egyptian President, Abdel Fattah El-Sisi and Norwegian Prime Minister, Jonas Gahr Støre.
  • The facility is the first integrated green hydrogen plant in Africa, and when fully developed will consist of 100 MW of electrolysers, powered by 260 MW of solar and wind.
  • The facility will deliver up to approximately 15,000 tons of green hydrogen as feedstock for the production of up to 90 000 tons of green ammonia per year in Fertiglobe’s existing ammonia plants.
  • The consortium is in the process of finalising engineering and technology choices for the full-scale plant and the partners aim to reach a Final Investment Decision (FID) on the facility in 2023.
  • Currently testing the first and largest PEM electrolyser in Africa for the first phase of the project.

The launch of the hydrogen facility comes as world leaders gather for the United Nations COP 27 Climate Change Conference in Sharm El Sheikh, Egypt, where they seek to accelerate global climate action through emissions reduction. Unless we make sharp reductions in greenhouse gas emissions in the coming decades, global warming will exceed the Paris agreement’s goal of limiting temperature rise to 1.5 degrees Celsius.

In order to secure affordable, accessible and sustainable energy security for future generations an accelerated shift to renewable energy and lower carbon-intensity fuels is required. Green hydrogen, which is produced from water using renewable energy sources, has the potential to play a significant role in decarbonizing hard to abate sectors, such as heavy industries and global shipping.

Ain Sokhna has a strategic position close to the Suez Canal Economic Zone with the possibility of using renewable electricity to develop an industrial hub near global shipping lanes.

Fertiglobe has a strong global network through its shareholders OCI N.V. and ADNOC and is an early mover in hydrogen and low-carbon ammonia. The hydrogen tie-ins for up to 100 MW of electrolysis have already been installed at Fertiglobe’s two existing ammonia plants in Ain Sokhna.

The project is being built by Orascom Construction using Egyptian engineers and state of the art technology.

Terje Pilskog, CEO of co-owner and leading renewable power producer Scatec said: “Today marks a key milestone for Scatec, but more importantly, it represents a breakthrough for green hydrogen production in a strategically situated region. It is an honour to work together with Egyptian authorities and our industrial partners on this project and commence the commissioning of the green hydrogen project in Egypt during the UN world leader’s climate summit. We see a massive green hydrogen demand driven by strong policy support globally, and Africa is perfectly positioned to take advantage of its low-cost renewables and strategic position.”

His Excellency Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, UAE Special Envoy for Climate Change and chairman of co-owner Fertiglobe, said: “The commissioning of ‘Egypt Green’ marks another important step in the journey to unlock the potential of hydrogen and its carrier fuels.  As the world meets in Sharm el Sheikh for COP 27, this project represents a practical response to the need to meet rising energy demand with minimum emissions. The first integrated green hydrogen plant in Africa, delivered in record time, shows what can be achieved when we collaborate around a shared ambition. Fertiglobe will continue to leverage its knowledge and experience in hydrogen and ammonia, to make low and zero carbon fuels more available, as the world seeks a realistic pathway to a decarbonised energy system.”

Nassef Sawiris, Executive Chair of OCI N.V. and Executive Vice Chair of co-owner Fertiglobe said: We are pleased with the launch of the first tangible project of its kind and the first integrated green hydrogen plant in Africa. It is a true milestone that puts Egypt and Africa firmly on the map as one of the best places in the world to develop a green hydrogen hub, thanks to available land, abundant renewable energy sources, the significant pool of skilled labour, and our location on global crossroads. We are pleased to have been able to show leadership in developing a green ammonia production platform in such a short time frame, something that has not been achieved elsewhere. We could not have done this without the support of in particular the Egyptian government or without the collaboration with our industrial partners. We look forward to seeing the positive impact this project can have for the world.”

Ahmed El-Hoshy, CEO of OCI N.V. and co-owner Fertiglobe said: “This project is a significant further step towards our global decarbonisation strategy and an exciting milestone for Fertiglobe, as it marks the first of many stages in the execution on our hydrogen roadmap. Adding the electrolyzer to our state-of-the-art ammonia facilities and infrastructure in Egypt, we are fully leveraging our existing ammonia production and global distribution infrastructure, including OCI’s Port of Rotterdam ammonia import terminal. We aim to meet the increasing demand for large-scale low-carbon hydrogen and ammonia, as the need for more sustainable energy sources becomes more urgent. Together with our partners in the project we are acting on this need and bringing the hydrogen future to life.”

Osama Bishai, CEO of co-owner Orascom Construction said: “The project brings together world class partners that collectively set an ambitious goal to form a new hydrogen hub out of Egypt, thus creating a new sustainable industry. So many variables went into making this phase come to life. This project would not have been possible without the support of the Egyptian government and several ministries, who by working closely with the consortium, was able to provide immense support that was integral to the swift delivery of the first phase of ‘Egypt Green’. I am also proud of our teams on the ground who worked tirelessly to commission the first phase of this project, consequently, making this launch possible. This state-of-the-art project, which implements the latest hydrogen technology, is built by Egyptian engineers on Egyptian soil. We are delighted to embark on a journey that plays an important role in the sustainable industrial development of Egypt.”

Ayman Soliman, CEO of The Sovereign Fund of Egypt said: “This project is a showcase of transitioning from pledges to implementation, delivering on Egypt’s promise to the world to create a regional hub for green energy and transforming the Suez Canal into a green corridor. We are setting a precedent with our foreign and local partners from the private sector by establishing the first integrated green hydrogen plant in Africa and Emerging Markets that caters to the growing demand for clean energy. It is a moment of pride that we will build on for future generations. Our pipeline of projects in the green energy field capitalises on Egypt’s ideal location with its unique renewables profile and proximity to markets with renewables deficits to realize our shared goal of emissions reduction.”

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COP27: Which countries will push to end fossil fuel production? And which won’t?

Fossil fuels have provided a crucial source of energy over the past 200 years. But they also account for 75 per cent of global greenhouse gas emissions, enable massive environmental destruction and support many brutal regimes.

The United Nations climate change conference, known as the Conference of the Parties (COP27), began Sunday in Sharm el-Sheikh, Egypt, offering countries and organisations yet another chance to push for a phasing out of fossil fuel production. Russia’s invasion of Ukraine and the resulting sanctions have made this move both urgent and challenging.

As researchers working on climate change and resource governance, we believe that new initiatives like the Beyond Oil and Gas Alliance (BOGA) and rising support for a Fossil Fuel Non-Proliferation Treaty — which aims at addressing the threat posed by fossil fuel production — can help build momentum towards phasing out fossil fuels.

A managed fossil fuel phaseout offers a chance for producers — including governments, corporations and unions — to negotiate the terms of a ‘just transition’ to renewable energy that includes retraining workers, addressing lost income, securing new forms of energy and diversifying fossil fuel dependence economies.

COP26 opened the doors for a phaseout

The Glasgow Climate Pact, that emerged out of COP26 last year, called upon parties to “accelerate efforts towards the phase-down of unabated coal power and inefficient fossil fuel subsidies, recognizing the need for support towards a just transition. ”The COP26 held in Glasgow last year opened the doors for the phasing out of fossil fuel production globally.

The COP26 also saw the launch of the BOGA through which governments like Costa Rica, Denmark, France, Greenland, Ireland, Québec, Sweden and Wales can pledge to either phase out the production of fossil fuels, commit to a production phaseout with a legislated end date for existing production, or make looser commitments.

So far, no government with significant fossil fuel production has joined BOGA or endorsed the Fossil Fuel Non-Proliferation Treaty initiative, a fast growing civil society initiative calling for an end to new exploration and production, a fair phaseout of existing production and a just transition for fossil fuel workers, communities and producing countries.

Having tracked through the Fossil Fuel Cuts Database which countries had previously adopted initiatives to curtail fossil fuel production, including moratoria, divestments, carbon taxes or subsidy phaseouts, we tried to determine which of them might join an international coalition for a managed phasing out of fossil fuel production.

Who may join the phaseout coalition?

Using the Fossil Fuel Cuts Database, we tested economic, political and climate vulnerability factors against initiatives already taken between 2006 and 2019 by 124 governments with fossil fuel reserves. We found that dependence on fossil fuel rents reduces the likelihood of constraint measures, but not the size of fossil fuel reserves or production. Richer countries are also more likely to use constraints.

Based on our findings, we sketched seven main categories of countries for building up a global phaseout coalition.

The first and most likely members of such coalitions are middle and high-income countries with democratic regimes, active domestic climate movements and fossil fuel reserves of little significance to their economy. This has been the case of most of BOGA’s members.

The second category includes small countries that have no fossil fuel industry and are highly vulnerable to climate change impacts, such as the republic of Vanuatu in Oceania, the first state to officially support the Fossil Fuel Non-Proliferation Treaty.

The third category comprises countries with little prospect of fossil fuel production compared to major stakes in a green transition, such as Chile, a leading copper and lithium producer.

A fourth category includes high-income democratic countries with significant fossil fuel production but a diversified economy, such as the Netherlands, which shut down some of its natural gas fields.

A fifth category comprises countries where fossil fuel production is almost exclusively serving domestic energy markets that are slowly decarbonizing. China, India and the U.S. — the three biggest coal burners — have considered phasing down their coal production, but are yet to sign the Powering Past Coal Alliance — a coalition of national and sub-national governments, businesses and organisations working to advance the transition from unabated coal power generation to clean energy.

A sixth category includes countries that are highly dependent on fossil fuel revenues but still interested in accelerating their economic diversification, such as Saudi Arabia, the world’s largest exporter of crude oil, which embarked on an ambitious economic diversification plan. But, like with many other fossil fuel rich countries, this plan largely relies on fossil fuel revenues to finance diversification and a green transition, thus sustaining the paradox of increased production to pay for a planned phaseout.

A seventh category comprises low to middle-income countries with a high level of dependence on foreign aid, foreign direct investment and fossil fuel revenues. These countries face challenges when translating fossil fuel wealth into inclusive forms of development and often become even more indebted. Compensating them for leaving their fossil fuel reserves has proven challenging. However, some countries like Colombia may at some point decide to join a coalition following initial pledges to keep fossil fuels in the ground.

The right incentives can mobilise institutions

An agreement over a managed fossil fuel phaseout will not only help reduce emissions, but also help producers move away from the harmful effects of fossil fuel revenue dependence.

With the right kind of economic and political incentives, including support for economic diversification and energy security guarantees, a phaseout agreement could attract producing countries and mobilise key organisations, including the International Energy Agency, the Organization of the Petroleum Exporting Countries, the UN Framework Convention on Climate Change and the World Trade Organization.

The next two COP meetings taking place in Egypt and in the United Arab Emirates will play a crucial role in increasing pressure to phase out fossil fuels, expanding the number of BOGA members and starting substantive discussions on processes and principles for an international fossil fuel phaseout agreement.

Article courtesy The Conversation

By Philippe Le Billon, Professor, Geography Department and School of Public Policy & Global Affairs, University of British Columbia

Nicolas Gaulin, Msc Student in Environmental Sciences, Wageningen University

Päivi Lujala, Professor, Geography, University of Oulu

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Minister Enoch Godongwana: 9th Southern Africa/Europe CEO dialogue

10 Nov 2022

It is my privilege to welcome all of you to the 9th Southern Africa/Europe CEO Dialogue. In February this year, leaders from Africa and Europe met in Brussels for the 6th European Union – African Union Summit.

A key outcome of that Summit was the adoption of a joint vision for a renewed partnership between Africa and Europe. This, we said, will be a partnership based on solidarity and shared values towards a prosperous, sustainable and shared future. We committed to work together to build more diversified and inclusive economies. We also agreed on strengthening investment, supporting industrialisation and the development of sustainable and resilient value and supply chains.

Ladies and Gentlemen, it is in this context that this 9th Southern Africa/Europe CEO Dialogue is taking place. We are also meeting against a backdrop of two major global crises: the lingering Covid-19 pandemic and the Russia-Ukraine conflict.

This Dialogue, therefore, is not only a platform to advance the vision we articulated in Brussels, but also to respond to the challenges of our time. It is also a platform to strengthen trade and economic relations between Europe and South Africa.

Economic outlook

Due to a significant slowdown in the world’s largest economies including the Euro Area, the IMF projects global growth of 3.2 percent, from a forecast of 4.4 percent in 2022. The 2023 outlook has also been revised downward to 2.7 percent.

Global headline inflation is projected at 8.8 percent in 2022, before slowing to 6.5 percent in 2023 and 4.1 percent in 2024. In the short-term, global monetary policy will continue to tighten as central banks intensify the fight against inflation.

Global trade volumes will slow significantly from 10.1 percent in 2021 to 4.3 percent in 2022, and 2.5 percent in 2023. Disruptions to global trade, supply and value chains have tilted the balance of risks to Africa’s economic growth outlook to the downside.

Africa’s real GDP growth is now projected at 4.1 percent in 2022; significantly lower than the near 7 percent recorded in 2021. Growth is likely to come in at around 4 percent in 2023. In South Africa, real GDP contracted by 0.7% quarter on quarter in the second quarter of 2022, compared to a downwardly revised expansion of 1.7 percent quarter on quarter in the first quarter.

We expect domestic monetary policy to tighten further in the near term. Persistently high inflation, rising interest rates, slowing global growth, increased volatility and uncertainty all point to a challenging outlook in the near to medium term for South Africa’s economy. Domestic GDP growth for 2022 has been revised downward to 1.9 percent from a projected 2.1 percent, and to 1.4 percent in 2023 from 1.6 percent.

Our response to the challenging economic environment

In response to the challenges of the moment, our focus has been on the implementation of structural reforms to improve competitiveness, industrial policy to boost manufacturing and measures to strengthen the capacity of the state. We are doing this within a clear and stable macroeconomic framework, including a stable and flexible exchange rate, low and stable inflation, and sustainable fiscal policy.

On structural reforms, we are creating a competitive energy market, dealing with inefficiencies in our ports and rail network, addressing our visa regime to attract skills and investments and are reforming our water and telecommunications sectors. Work continues to build a capable and developmental state which is a necessary precondition for inclusive growth.

We are also intervening to reverse the decline in fixed investment, including through ensuring policy certainty and addressing the cost and ease of doing business. The capacity of our state-owned enterprises to invest in the economy, to unlock growth and job creation is being enhanced.

Infrastructure budgets across government are being increased while capacity for project planning, preparation and execution is being enhanced. Spending on capital assets is the fastest growing expenditure item on our budget. Action is being taken to modernise procurement and improve contract management.

Our investment in fighting crime and corruption is being strengthened as part of removing impediments to investment and growth. The African continent is devastated the most by the worsening effects of climate change, which poses an existential threat to humanity. We are committed to the goal of a just transition.

Our approach envisions accelerating investment in new generation capacity, while preserving the livelihoods of communities adversely affected by the transition from coal and other fossil fuels.

We reiterate President Ramaphosa’s call at COP 27 that Africa needs to build adaptive capacity, foster resilience and address the loss and damage due to climate change. For this to happen, our continent needs a predictable, appropriate and at-scale funding stream and technological support.

This places a responsibility on developed nations to honour their commitments to those countries with the greatest need and that confront the greatest environmental, social and economic effects of climate change.

Conclusion

Programme Director, in the words of Andrew Steer, the CEO of the Bezos Earth Fund, this is a sobering moment not only for Africa, but also for the world. It is a time of a slowing growth globally, geopolitical tensions, and the lingering impact of Covid-19. It is also a time of the perfect storm of rising food prices, rising energy prices, rising interest rates, as well as increases in the impact of climate change and vulnerability.

All of this is happening when the fiscal space has narrowed considerably in many countries and access to global capital even more constrained.

Faced with this stark reality, the need for ongoing dialogue among key decision makers has never been greater.

We need a deeper conversation on accelerating sustainable and inclusive growth on our continents.

We need to find ways of strengthening trade among ourselves in this new environment.

Together we must navigate through the global crises and disruptions shaping our national and regional economies.

We must strive for prosperity and sustainability for our people and continents.

I have no doubt that this will be the platform where all of these issues will be thoroughly deliberated upon.

I wish you a successful Summit.

Thank you!

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Agriculture, Land Reform and Rural Development gives climate advisory for 2022/23 summer

The majority of the country is currently reporting poor to reasonable veld and livestock conditions. Summer rainfall areas began receiving some rain, mostly later in October and farmers are preparing land for planting. Parts of the Western Cape, extreme western areas of the Northern Cape and the Sarah Baartman District of the Eastern Cape continue to experience dry conditions. The average level of major dams remains high in most provinces.

According to the Seasonal Climate Watch issued by the South African Weather Service, dated 1 November 2022, above-normal rainfall is expected for most parts of the country for the summer season. Minimum temperatures are expected to be above-normal countrywide, however, maximum temperatures are expected to be below-normal over large parts of the country during the entire summer.

The October Famine Early Warning Systems Network (FEWS NET) reported that Crisis (IPC Phase 3) outcomes are expected to become more widespread in areas of southern Madagascar, Malawi and Mozambique, as well as areas of Angola and much of Zimbabwe due to compounding impacts of poor 2021/22 rainfall, tropical cyclones, and domestic economic declines that started in October.

Food security outcomes are expected to be most severe in southwestern Madagascar, where Emergency (IPC Phase 4) outcomes also started in October. The population in need is likely to steadily increase through early 2023. Conflict in the Democratic Republic of the Congo (DRC) and northern Mozambique remains the primary driver of acute food insecurity with the disruption to livelihood activities. In Mozambique, the Cabo Delgado and Nampula provinces experienced an escalation of militia attacks in September.

According to the International Organization for Migration, more than 15 400 people were displaced between late August and late September. In the DRC, the security situation in the eastern provinces continues to deteriorate, especially in Ituri. Households in conflict-affected areas continue experiencing Crisis (IPC Phase 3) outcomes and face difficulty engaging in the upcoming agricultural season.

FEWS NET further reported that across the region, poor households are engaging in off-season income-earning activities. While opportunities are currently limited, they were expected to improve to near-normal levels in October as land preparation started in most areas. November through December will likely see further improvements in agricultural activities, including planting. Predicted La Niña conditions are typically associated with average to above-average rainfall in Southern Africa. They will likely improve the availability of agricultural labour opportunities in most of the region.

However, in areas like southern Madagascar, income from agricultural labour opportunities will remain lower than normal as better-off households have lower liquidity following consecutive droughts. Food prices are increasing as more households rely on markets for food, especially in areas where production deficits were observed in 2022.

This year, price increases have been accelerated by high fuel prices linked to high global prices, according to FEWS NET. Prices of maize grain are 70% to 180% above the five-year average in Malawi and up to 42% higher than the average in Mozambique. In the DRC and Zimbabwe, food prices are expected to remain above the five-year average throughout the lean season.

In Madagascar’s southern drought-affected areas, dried cassava prices are 67% higher than average. In most countries, inflation has also been increasing, likely triggering more price increases for food. Poor households in the most deficit areas will continue struggling to access food commodities on the market due to weak purchasing power.

[The IPC is a set of standardised tools that aims at providing a “common currency” for classifying the severity and magnitude of food insecurity.]

With the current conditions in mind, as well as the seasonal forecast, dryland farmers are advised to wait for sufficient moisture before planting and remain within the planting window. Farmers in areas that have been constantly experiencing dry conditions should prioritise drought-tolerant cultivars. In regions that are in reasonable condition, farmers are advised to prepare in line with the expected conditions, i.e., in line with the seasonal forecast.

However, they should not expand planting land unnecessarily. In addition, farmers should note that rainfall distribution remains a challenge, therefore not all areas might receive the anticipated above-normal rainfall that is well distributed.

Farmers are also advised to put measures in place for pests and diseases associated with wet and hot conditions as above-normal rainfall is anticipated. Moreover, it is important for farmers to follow the weather forecast regularly so as to make informed decisions. Farmers using irrigation should comply with water restrictions in their areas. Farmers must continually conserve resources in accordance with the Conservation of Agricultural Resources Act, 1983 (Act No. 43 of 1983).

Farmers are advised to keep livestock in balance with carrying capacity of the veld, and provide additional feed such as relevant licks. Livestock should be provided with enough water points on the farm as well as shelter during bad weather conditions. Winter rainfall areas are becoming drier, increasing favourable conditions for veld fires. Therefore, the creation and maintenance of fire belts through mechanical means should be prioritised along with adherence to veld fire warnings.

Episodes of flooding resulting from rain bearing weather systems have occurred and will continue; precautionary measures should be in place. Heat waves have been reported and will occur during summer and therefore measures to combat these should be prepared. Farmers are encouraged to implement strategies provided in the early warning information issued.

The department will partner with all relevant stakeholders to continue raising awareness in the sector and capacitation of farmers on understanding, interpretation and utilisation of early-warning information for disaster risk mitigation and response.

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SA’s new Just Energy Transition Investment Plan

Joint Statement

The International Partners Group, chaired by the UK and comprised of France, Germany, the UK, the US and the EU, jointly welcome and endorse South Africa’s Just Energy Transition (JET) Investment Plan.

At COP 26 in November 2021, the governments of South Africa, France, Germany, the United Kingdom and the United States of America, along with the European Union, issued a Political Declaration announcing a new ambitious, long-term Just Energy Transition Partnership (JETP). The Partnership aims to accelerate the decarbonisation of South Africa’s economy to help it achieve the ambitious goals set out in South Africa’s updated Nationally Determined Contribution emissions goals.

During the World Leaders Summit at COP27 on 7 November, President Cyril Ramaphosa of the Republic of South Africa launched the new JET Investment Plan prepared by the South African government as envisaged in the Political Declaration. The Plan covers three priority sectors – the energy sector as well as, electric vehicles and green hydrogen – for finance.

A ‘Just’ approach underpins the Plan, aiming to ensure that those most directly affected by a transition from coal – workers and communities including women and girls – are not left behind. It identifies $98-billion in financial requirements over five years to begin South Africa’s 20 year energy transition.  Investment will be required from both public and private sectors.

The IPG is mobilising an initial $8.5-billion to catalyse the first phase of the programme.

The funding package will be disbursed through various mechanisms over the five year period including grants, concessional loans and investments and risk sharing instruments. The IPG’s funding will align to the Investment Plan and be geared towards: coal plant de-commissioning; funding alternative employment in coal mining areas; investments which will facilitate accelerated deployment of renewable energy and investments in new sectors of the green economy.

The Chair of the International Partners Group, the United Kingdom’s Prime Minister Rishi Sunak, said: “I congratulate President Ramaphosa for the great progress that has been made on the South Africa Just Energy Transition Partnership. In one year since COP, South Africa, along with the UK and our friends in the International Partners Group, have shown how serious we are about making the changes we need to halt climate change. South Africa’s JET Investment Plan paves the way for a sustainable and fair transition away from coal and towards cleaner forms of energy, building the foundations for a strong green economy.”

The President of the United States of America, Joseph R. Biden, said:  “The United States is proud to partner with the Government of South Africa and the members of the International Partners Group to support South Africa’s just transition to a cleaner energy future. We welcome the comprehensive JET Investment Plan, and fully support South Africa’s economy-wide energy transformation. Our support for South Africa’s clean energy and infrastructure priorities, which include efforts to provide coalminers and affected communities the assistance that they need in this transition, will help South Africa’s clean energy economy thrive.”

The President of the Republic of France, Emmanuel Macron, said: “France is proud to work with South Africa on the implementation of this Just Energy Transition Partnership, which will help to strengthen the country’s energy security, green its electricity mix and set a benchmark for other countries around the world, while keeping at its core the just element of this transition in order to leave no one behind. I welcome the ambitious Just Energy Transition Investment Plan presented by South Africa and I am happy to confirm that France has just unlocked a concessional policy support of 300 M€ to South Africa, as a first step towards the fulfilment of our $1-billion commitment to support South Africa’s decarbonisation”

The Chancellor of the Federal Republic of Germany, Olaf Scholz, said: “Climate protection and economic prospects must go hand in hand. The adoption of the investment plan is a milestone on the path to a climate-neutral and – at the same time – socially just economy in South Africa. Germany is contributing 1 billion USD, including a substantial part through grants, to a support package from the international donor community worth 8.5-billion USD. This is an ambitious start. More needs to follow, particularly in collaboration with the private sector.”

European Commission President, Ursula von der Leyen, said: “For the EU, the climate transition needs to be just. This partnership, with new investments, is how we help ensure that nobody is left behind. Therefore I welcome the endorsement of this Investment Plan. It will now kick-start the Just Energy Transition Partnership with South Africa, a first of its kind global initiative for accelerating a just energy transition in countries that commit to phase out coal. It is a flagship of EU-supported multilateral cooperation to limit global warming to 1.5°C.”  

A joint 12-month update to leaders by South Africa and the IPG summarises key technical progress that has contributed to the development of the JETP Investment Plan. It, and the preceding six-month update to leaders, also outline measures undertaken by the government of South Africa to strengthen the enabling environment for South Africa’s long-term energy transition.

The IPG’s initial $8.5-billion funding package includes[1]:

  • $2.6-billion through the Climate Investment Funds Accelerating Coal Transition Investment Plan[2] (CIF ACT)
  • $1-billion from France[3]
  • $1-billion from Germany[4]
  • $1.8-billion from the UK[5]
  • $1-billion from the US[6]
  • $1-billion from the EU[7]

Some of this funding is already programmed while other parts of it have still to be finalised and programmed in line with the final Investment Plan. Work to programme the full $8.5-billion will continue in coming months.

In addition to the $8.5-billion, the World Bank Board has recently approved the Eskom Just Energy Transition project which is providing $0.5-billion of financing in support of South Africa’s Just Energy Transition.

INTERNATIONAL PARTNERS GROUP FINANCIAL SUPPORT

The IPG has supported South Africa’s Just Energy Transition in a variety of ways both directly and indirectly.  A fuller description of support is provided below.

Early progress in deploying the $8.5-billion support of Investment Plan

The Climate Investment Fund Accelerating Coal Transition (CIF ACT) Investment plan will provide $2.6-billion in total including $500-million of highly concessional Accelerating Coal Transition funding provided by the CIF. IPG members (Germany, the UK and the US) provide approximately 65% of funding for the overall CIF ACT programme. The CIF ACT Investment Plan will support the decommissioning and repurposing of three coal power stations, community development and energy efficiency projects in Mpumalanga. The World Bank’s Eskom Just Energy Transition project will provide finance for decommissioning and repurposing a further coal power station.

France and Germany are providing $600-million ($300-million each) for a concessional policy loan to South Africa to support the JETP.  The loan will be formally signed during COP27.

A number of IPG grant funded activities contributed to the development of the Investment Plan and will contribute to ongoing analytical and policy work as South Africa moves towards implementation.  These include:

  • The UK has funded work with municipalities and affected communities in the two most coal-dependant municipalities in Mpumalanga (eMalahleni & Steve Tshwete Local Municipality) to co-develop a coherent and inclusive just transition plan for each municipality.
  • Germany has funded the integration of renewable energy (particularly solar energy) into the existing energy grid. Measures to increase energy efficiency are being developed in cooperation with local authorities.
  • The US Trade and Development Agency funded a Clean Energy and Climate Infrastructure Event Series to promote cooperation on clean energy topics between the public and private sectors in the United States and South Africa.  The series inaugurated with a two-day workshop on green hydrogen, held last week [October 31 – November 1] in Cape Town.  USTDA also intends to support preparation of projects to strengthen South Africa’s grid and accelerate deployment of renewable energy.
  • The EU has awarded grants to increase the participation of South Africa’s civil society in reducing emissions and adapting to climate change, while enhancing gender equality and the participation of the youth by strengthening skills.
  • France has funded work for the development of a climate finance mapping and tracking tool, the execution of a study related to the localization potential for solar PV and storage value chains in South Africa as well as support to Eskom for the refinement of its JET strategy and implementation plan.

Elements of the $8.5-billion still to be programmed

A further $2.2-billion of sovereign loans will be programmed by France’s AfD, Germany’s KfW and the EU’s European Investment Bank in support of the Investment Plan.  The details of these loans will be announced as they are finalised.

$1.5-billion of Development Finance Institution support for private sector investment is available from the US and the UK. This will take the form of patient investments which will either seek to crowd in private sector investment to new and riskier areas or provide investment where the private sector is currently unwilling or unable to invest.  Details of these investments will be announced as they are finalised.

The UK is providing $1.3-billion of guarantees to enable enhanced AfDB lending in support of activities set out in the Investment Plan.  Details of the related loans will be announced once they have been agreed between the AfDB and the South Africa Government.

Additional IPG resources beyond the $8.5-billion

Further details of the $8.5-billion package are set out in the Investment Plan. In addition, the following additional resources are being made available by IPG members:

  • The US is making $45-million in highly concessional funding available through Power Africa
  • The European Investment Bank is making a €200-million loan to a South African bank for on-lending to eligible onshore wind and solar photovoltaic projects in South Africa.  Germany is providing €30-million to help South Africa develop Sustainable Aviation Fuel and €5-million to work on a Green LFG value chain.
  • In the second half of 2022, Germany offered 395 Million Euro to support the JET IP implementation, including 125-million grants.

[1] Some IPG contributions will be made in the provider’s domestic currency, which may be impacted by fluctuations in conversion against the dollar which means that the numbers may not total exactly $8.5-billion.  As of the date of finalising the Investment Plan they totalled $8.455 billion.  The country numbers in the press release have been rounded to the nearest $0.1-billion.

[2] The CIFs ACT Investment Plan is calculated on the basis that $500-million in ACT funding will leverage an additional $2.1-billion in finance including World Bank and African Development Bank loans as set out in the CIF ACT Investment Plan.

[3] $1.0025-billion

[4] $0.968-billion

[5] $1.824-billion

[6] $1.0215-billion, not including the additional $45-million of highly concessional funding (mentioned below)

[7] €1.03-billion via the European Investment Bank (EIB) and the Global Europe Programme. The European Investment Bank is planning to provide concessional loans up to 1-billion euros to decarbonise the South African Economy and promote the development of green hydrogen and the EU will further provide 35-million euros in support of Just Transition.

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