Civil Society Climate Breakdown Climate Change Climate Crisis

THE ROLE OF TRANSITION FINANCE FOR CLIMATE MITIGATION – A JUST CLIMATE TRANSACTION FOR SOUTH AFRICA

 

THE ROLE OF TRANSITION FINANCE FOR CLIMATE MITIGATION – A JUST CLIMATE TRANSACTION FOR SOUTH AFRICA

 

THERE IS GLOBAL AGREEMENT THAT DEVELOPED COUNTRIES WILL ASSIST DEVELOPING COUNTRIES TO FINANCE CLIMATE CHANGE MITIGATION

• Given the global concern about the climate crisis:

• The Paris Agreement (Art.9.) stipulates developed countries are to:

• provide financial assistance, and

• lead the mobilisation of finance from a wide variety of sources to support developing countries to mitigate and adapt to climate change.

• It sets a collective goal of USD$100bn in climate finance assistance per year by 2020 (to be revised upwards in 2025)

• This is largely concessionary finance, whose efficacy is assessed according to $/tCO2e mitigated

LATTERLY, THE NEED FOR ‘TRANSITION FINANCE’ MODELS AS CATEGORY OF MITIGATION-RELATED CLIMATE FINANCE HAS EMERGED

• For instance, divestment can happen much faster than power systems can be reconfigured to clean energy – Even for most aggressive renewable rollout scenarios

• Existing generation (often coal-based) is required for power system adequacy during (even an accelerated) transition – Capital is required to keep this required capacity going. Under indiscriminate divestment, who will fund this? – Mitigation of transition related negative economic, employment and social impacts also has to be funded.

• For a transition to be just, incumbents cannot just be pushed to collapse. This will trigger significant negative economic and social impacts. Transition support is required.

Click on the link for the full report:

THE ROLE OF TRANSITION FINANCE FOR CLIMATE MITIGATION – A JUST CLIMATE TRANSACTION FOR SOUTH AFRICA

 

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