U. S. to support South Africa for Energy transition-Yellen
2023.01.27 08:18
U. S. to support South Africa for Energy transition-Yellen
By Kristina Sobol
Budrigannews.com – During her visit to Mpumalanga, a coal mining region in South Africa, on Friday, U.S. Treasury Secretary Janet Yellen pledged America’s unwavering support for the country’s transition to renewable energy without displacing its workers.
After touring a U.S.-funded facility where workers are training for jobs in the solar industry and other renewable energy industries, Yellen met with South African officials.
She said she would meet with officials from the private sector and philanthropists later on Friday. She said she hoped Washington’s emphasis on a fair transition would pique their interest in supporting the huge project to help South Africa gradually phase out fossil fuels.
In late 2021, the “Just Energy Transition Partnership,” or JETP, was supported by the United States, Britain, France, Germany, and the European Union with a combined $8.5 billion, but the total cost could be ten times higher.
At the Top of the World Training Center, which is funded by the United States, Yellen stated, “The financial package of $8.5 billion is a substantial down payment.”
She stated, “I will meet with representatives from both groups later today.” “Importantly, it is designed to mobilize additional money from the private sector and philanthropies.”
Yellen told reporters that she didn’t know what donors and the private sector could contribute, but that focusing on “the just part” would be “extremely important” in getting more money.
She stated that officials from the United States and South Africa had extensive discussions about anti-corruption initiatives and sought to assist Pretoria in strengthening its rules and enforcement.
When asked if concerns about corruption could dampen interest from donors and the private sector, she responded:
“We agree that it’s really critical to address corruption in order to have an effective government that South Africans can have confidence in, and it’s a critical part of the business environment.”
Redevelopment of former coal mines and coal power plants as clean energy production sites and other productive uses, investment in roads, rail, ports, and digital infrastructure, and cash payments to support displaced workers are all part of South Africa’s plan.
“The United States of America has a firm commitment to the energy transition being “just.” Because of this, Yellen stated, “President Biden made an additional commitment to President Ramaphosa of $45 million in grant funding to support South Africa’s efforts.”
According to data from the Global Carbon Atlas (NYSE:), South Africa is the world’s 14th largest carbon emitter due to its reliance on coal for electricity. This puts it three places ahead of Britain, which has a seven and a half times larger economy.
The African National Congress (ANC), which is in charge of South Africa, is divided over President Cyril Ramaphosa’s plan to move away from coal and toward renewable energy. Allies of the party, union leaders, are concerned about massive job losses in the coal belt that they doubt the renewables industry will be able to avert.
Reuben Brigety, the U.S. ambassador to South Africa, told reporters on Thursday that the Treasury secretary discussed the partnership with Ramaphosa and Energy Minister Gwede Mantashe. Mantashe is a vocal advocate for keeping South Africa’s coal mines and power stations open.
He stated that while they agreed that the transition to a low-carbon economy was necessary, they questioned how and when they could do so.
With stops in Senegal and Zambia, Yellen is coming to the end of a trip to three African countries with the intention of strengthening economic ties between the United States and the continent and challenging China’s long-standing dominance of trade and lending with many African nations.
