Climate Investment Funds (CIF), a World Bank-linked climate fund, has approved an updated version of South Africa’s Accelerating Coal Transition Investment Plan. The approval clears the way for CIF to disburse $500 million and opens the door for an additional $2.1-billion from lenders such as the World Bank and the African Development Bank. South Africa currently relies on coal for about 80% of its electricity generation. This financing is significant for South Africa’s energy transition, as the country has the most carbon-intensive economy of any country in the G20. It is especially important after the USA’s withdrawal from a Just Energy Transition Partnership earlier this year, which cost South Africa $1 billion in loans.
