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A decision on a disbursement by the World Bank-linked Climate Investment Funds that would trigger a US$2,6 billion green-finance package for South Africa was set to be made last Friday, people with knowledge of the matter said.
The CIF, which is backed by money from 15 of the world’s richest nations, was considering a US$500 million payment to South Africa to help it transition away from the use of coal, the dirtiest fossil fuel.
If granted, that would unlock a further US$2,1 billion in funding from multilateral development banks and other sources. The decision was initially delayed last year by South Africa’s attempt to alter the terms of the pact by keeping three coal-fired power plants open longer than had been agreed earlier.
The US had asked for more time and had been given until last Friday, one of the people said, asking not to be identified before an announcement.
If further questions are asked by any of the countries, the decision may be pushed out further, another person said. The disbursement would need backing from all of the participating countries unless they abstained, the person said.
If a decision was reached, it was set to be made public on today, one of the people said.
South Africa’s presidency declined to comment, as did the CIF. The US Embassy in South Africa didn’t respond to a request for comment.
Losing the finance would be another blow to South Africa’s bid to fund the rollout of green energy and close the coal-fired power plants that supply more than 80 percent of its electricity, making it the most carbon-intensive economy of any nation with a population of more than 4 million people. — Bloomberg.
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