As the COP29 Azerbaijan Summit approaches, the European Investment Bank (EIB) and Development Bank of Southern Africa (DBSA) agreed to jointly lend an additional 200 million euros to renewable energy projects in South Africa.
The climate funding is in addition to the 400 million euros the EIB and DBSA pledged at the COP27 climate summit, back in 2022. The funds were meant to support independent power projects in Africa’s most industrialized country.
South Africa’s new energy minister vowed in July to accelerate the shift to renewable energy, and abandon fossil fuels like coal. This is after halting progress under a predecessor who opposed swift decarbonisation.
The southern nation is among the world’s top greenhouse gas emitters as it relies heavily on coal for power generation. It is time for the country to start utilizing its abundant renewable energy resources.
The EIB and DBSA will each commit an additional 100 million euros in loans to support small- and medium-sized renewable energy projects, particularly solar and onshore wind, the two banks said in a statement.
Supported projects are expected to add 384 megawatts of new renewable energy capacity, they said.
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