FedEx Establishes Direct Presence in Nigeria to Support Customers with International TradeRead more Open Society Foundations (OSF) Award $1.1 Million Grant to Afrobarometer to Spur Future GrowthRead more The annual Global Impact Conference 2022 brings together visionary business leaders to revolutionize educational systems and inspire collaborative actionRead more APO Group announces content partnership with Pan-African broadcaster VoxAfricaRead more MainOne, an Equinix Company’s MDXi Appolonia Achieves Tier III Constructed Facility certification (TCCF), Now Most Certified Data Center in GhanaRead more United Nations High Commissioner for Refugees (UNHCR) warns rising tide of hunger, insecurity, and underfunding worsening gender-based violence risksRead more The Royal Thai Embassy presents the cultures of Thailand at the Association of Southeast Asian Nations (ASEAN) Festival in KenyaRead more Climate change is the biggest global threat, young people in Africa and Europe tell European Investment Bank (EIB), Debating Africa and Debating EuropeRead more $2 million in prizes awarded at Conference of the Parties (COP27) to African youth-led businessesRead more Africa and Europe’s top business and public sector leaders gather to chart Africa’s economic rebirthRead more

S.Africa will need $500 bn to reach net zero: World Bank

show caption
The bank said South Africa's coal-dominated energy sector was responsible for nearly half of its emissions./AFP
Print Friendly and PDF

Nov 02, 2022 - 08:44 AM

Johannesburg, South Africa — South Africa, one of the world’s largest greenhouse gas emitters, will require at least half-a-trillion dollars to achieve carbon neutrality by 2050, the World Bank said Tuesday.

“Financing requirements associated with the transitions could amount to 4.4 percent of GDP per year — or 8.5 trillion rand (about $500 billion)” between this year and 2050, said the bank in a report published Tuesday.

In light of the government’s limited fiscal capacity, the domestic private sector and external financing will be required for the transition, it said.

Last year, South Africa, the continent’s most industrialised economy, secured $8.5 billion in loans and grants from a group of rich nations to finance the transition to cleaner energy sources.

The bank said South Africa accounts for 1.2 percent of global greenhouse gas emissions — with the coal-dominated energy sector responsible for nearly half of its discharges.

“The power sector… will need to transform radically by moving away from coal toward renewables,” it said, projecting that solar and wind will provide about 85 percent of the country’s energy by 2050.

The country “is one of the most carbon- and energy intensive economies in the world”, the bank added, noting that South Africa’s carbon intensity was 3.2 times higher than the global average in 2019.

“This shift should start immediately to address the ailing generation capacity, accompanied by (an) enhanced regional energy market,” said the bank.

A shift away from coal for renewable sources of energy will help the country tackle its ongoing energy crisis “most urgently and cost-competitively”.

But transitioning from coal will come at a heavy cost.

The bank estimates that at least 300,000 jobs in high-emitting sectors will be lost, urging the government to find ways to alleviate the potential negative effects of the transition.

For every job lost, the bank estimated that between two and three jobs could be created in renewables, green manufacturing and non-coal mining sectors.

MAORANDCITIES.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.