Climate finance to transform energy infrastructure as part of a just transition in South Africa. Research report for SNAPFI project

dc.contributor.authorWinkler, Harald
dc.contributor.authorKeen, Samantha
dc.contributor.authorMarquard, Andrew
dc.date.accessioned2020-09-09T08:24:24Z
dc.date.available2020-09-09T08:24:24Z
dc.date.issued2020-08
dc.description.abstractPrior to 2020, the South African economy was facing major socio-economic challenges, struggling to eliminate poverty and reduce persistent inequality. The COVID crisis has deepened the financial crisis, with the last major agency putting the country’s rating below investment grade, or ‘junk status’. The recovery plan starts with rescue. The climate crisis is longer-term but still needs as urgent action as ever. The country is preparing to enhance its nationally determined contribution in an unprecedented context. Decarbonisation of the electricity sector is a priority – but in the SA context requires careful attention to communities and workers dependent on coal. The just transition transaction (JTT) is being developed in technical detail since 2019 by Meridian Economics (2020) and making the financial deal is work in progress. In brief, the transaction mobilises blended finance to fund the accelerated phase out of coal, thereby accelerating a transition from coal to renewable energy, and a portion of the concessional funds flows into Just Transition fund. This case study reflects on the JTT, seeking to understand its architecture, the potential to catalyse changes in the complex set of challenges in the electricity sector, by funding accelerated phase-out of coal and a just transition in South Africa, with broader implications for international climate finance. The time-scale of developing the transaction is fluid, while implementation of decommissioning would take many years. The purpose of the study is to understand the potential of a just transition transaction to accelerate the phase out of coal-fired power and to fund development projects. The purpose requires a specific focus, and it is important to understand what is included in the scope of this case study, and what lies beyond that scope.en_US
dc.identifier.apacitationWinkler, H., Keen, S., & Marquard, A. (2020). <i>Climate finance to transform energy infrastructure as part of a just transition in South Africa. Research report for SNAPFI project</i> (SNAPFI;country study South Africa (year 1)). Cape Town: University of Cape Town. Retrieved from http://hdl.handle.net/11427/32176en_ZA
dc.identifier.chicagocitationWinkler, Harald, Samantha Keen, and Andrew Marquard <i>Climate finance to transform energy infrastructure as part of a just transition in South Africa. Research report for SNAPFI project.</i> SNAPFI;country study South Africa (year 1). Cape Town: University of Cape Town, 2020. http://hdl.handle.net/11427/32176en_ZA
dc.identifier.citationWinkler, H., Keen, S. & Marquard, A. 2020. <i>Climate finance to transform energy infrastructure as part of a just transition in South Africa. Research report for SNAPFI project</i>. (SNAPFI;country study South Africa (year 1)). Cape Town: University of Cape Town. http://hdl.handle.net/11427/32176 .en_ZA
dc.identifier.ris TY - Report AU - Winkler, Harald AU - Keen, Samantha AU - Marquard, Andrew AB - Prior to 2020, the South African economy was facing major socio-economic challenges, struggling to eliminate poverty and reduce persistent inequality. The COVID crisis has deepened the financial crisis, with the last major agency putting the country’s rating below investment grade, or ‘junk status’. The recovery plan starts with rescue. The climate crisis is longer-term but still needs as urgent action as ever. The country is preparing to enhance its nationally determined contribution in an unprecedented context. Decarbonisation of the electricity sector is a priority – but in the SA context requires careful attention to communities and workers dependent on coal. The just transition transaction (JTT) is being developed in technical detail since 2019 by Meridian Economics (2020) and making the financial deal is work in progress. In brief, the transaction mobilises blended finance to fund the accelerated phase out of coal, thereby accelerating a transition from coal to renewable energy, and a portion of the concessional funds flows into Just Transition fund. This case study reflects on the JTT, seeking to understand its architecture, the potential to catalyse changes in the complex set of challenges in the electricity sector, by funding accelerated phase-out of coal and a just transition in South Africa, with broader implications for international climate finance. The time-scale of developing the transaction is fluid, while implementation of decommissioning would take many years. The purpose of the study is to understand the potential of a just transition transaction to accelerate the phase out of coal-fired power and to fund development projects. The purpose requires a specific focus, and it is important to understand what is included in the scope of this case study, and what lies beyond that scope. CY - Cape Town DA - 2020-08 DB - OpenUCT DP - University of Cape Town KW - Just transition KW - International climate finance KW - South Africa KW - electricity KW - debt KW - poverty KW - energy transitions KW - coal transitions KW - renewable energy KW - justice KW - development projects LK - https://open.uct.ac.za PP - Cape Town PY - 2020 T1 - Climate finance to transform energy infrastructure as part of a just transition in South Africa. Research report for SNAPFI project TI - Climate finance to transform energy infrastructure as part of a just transition in South Africa. Research report for SNAPFI project UR - http://hdl.handle.net/11427/32176 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/32176
dc.identifier.vancouvercitationWinkler H, Keen S, Marquard A. Climate finance to transform energy infrastructure as part of a just transition in South Africa. Research report for SNAPFI project. 2020 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/32176en_ZA
dc.language.isoenen_US
dc.publisherUniversity of Cape Townen_US
dc.publisher.facultyFaculty of Engineering and the Built Environment
dc.publisher.locationCape Townen_US
dc.relation.ispartofseriesSNAPFI;country study South Africa (year 1)
dc.rights.urihttp://creativecommons.org/licenses/by-nc/4.0/en_US
dc.subjectJust transitionen_US
dc.subjectInternational climate financeen_US
dc.subjectSouth Africaen_US
dc.subjectelectricityen_US
dc.subjectdebten_US
dc.subjectpovertyen_US
dc.subjectenergy transitionsen_US
dc.subjectcoal transitionsen_US
dc.subjectrenewable energyen_US
dc.subjectjusticeen_US
dc.subjectdevelopment projectsen_US
dc.titleClimate finance to transform energy infrastructure as part of a just transition in South Africa. Research report for SNAPFI projecten_US
dc.typeReporten_US
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