Germany is in talks with South Africa over an additional €720 million ($845 million) in concessional climate financing under the Just Energy Transition Partnership (JETP), according to Rainer Baake, Germany’s special envoy for the programme.

Speaking at a press conference, Baake said the proposed funding would fall under the JETP, a climate-finance agreement between South Africa and a group of some of the world’s wealthiest nations aimed at supporting the country’s transition away from coal.

South Africa’s coal exit

The partnership is designed to accelerate investment in renewable energy, electricity grid infrastructure and climate-resilient development, while managing the social and economic impacts of South Africa’s shift from fossil fuels.

If approved, the new loans would raise Germany’s total climate-related support for South Africa under the JETP to €2.68 billion, up from an initial €986 million commitment, according to Bloomberg.

The discussions build on Germany’s growing financial backing for South Africa’s energy transition. In July, Berlin approved a €500 million ($582 million) concessional loan to support decarbonisation efforts, following earlier agreements finalised in 2022 and 2023 that brought total KfW-backed concessional financing to €1.3 billion.

Germany’s support forms part of the broader $8.3 billion JETP package launched at COP26, alongside funding from France, the UK, the United States and the European Union.

Finance Minister Enoch Godongwana said the financing would strengthen South Africa’s short- and medium-term energy security while advancing long-term decarbonisation. About 80% of the country’s electricity is generated from coal, making it the most carbon-intensive economy in the G20. (Business Insider Africa)