Europe will support South Africa in achieving its national goal to tackle the pressing socio-economic challenges through Just and Green Recovery
The European Union (E.U.) and its Member States will invest more than € 280 million in grants in South Africa to support policy reforms on green recovery, unlock green investments and build a knowledge-based transition in the framework of the Just and Green Recovery Team Europe Initiative for South Africa.
The announcement was made in Pretoria as part of Global Gateway. Of the total funds, € 87.75 million will be provided from the E.U. budget.
Through this partnership, Europe will support South Africa in achieving its national goal to tackle the pressing socio-economic challenges through policy dialogue, facilitating investment, including for public infrastructure and to unlock a sustainable, biodiversity friendly and circular economy and combat climate change.
Speaking on the occasion, the High Representative of the E.U. for Foreign Affairs – Josep Borrell Fontelles said, “The fight against climate change is a global responsibility. The European Union wants to work with its partners around the world, in addressing this threat together – so our future generations can live on a safe and prosperous planet. Together with South Africa, we are committed to a decarbonization pathway. The E.U. and its Member States will continue to partner with South Africa to implement the Just Energy Transition Partnership and making this journey just, not least with the Team Europe Initiative we are launching today.”
€ 40 million of E.U. grant funding will be used to facilitate investment in public infrastructure through blended finance. The E.U. will also support projects to boost greening of municipal services across South Africa. E.U. Member States will also work on the repurposing of coal power plants for the green transition, improving energy efficiency in public buildings and accelerating circular economy start-ups.
Additionally, under the Just Energy Transition Partnership (JETP), Germany, France and the E.U. will provide financing of more than U.S. $ 3 billion to South Africa.
Under Global Gateway, the E.U. and its Member States aim to mobilise up to € 300 billion together with the European financial institutions to support the twin green and digital transitions in partner countries and bridge the funding gap for infrastructure for development. This includes € 150 billion in Africa, with a considerable emphasis on renewable energy and on climate adaptation.
The collaboration is an example of the E.U.’s wider agenda on climate action, with the E.U. providing the largest contribution to global climate finance of € 23 billion in 2021.
The E.U. and partner countries are committed to limiting the global temperature rise to 1.5˚C by the end of this century. Across all E.U. development and cooperation activities, including the Global Europe financial instrument, 35% of support will contribute to climate-change objectives.
