Novel climate-financing deals are promising to shut off dirty energy plants in developing countries and retrain their staff to work in the green economy.
Why the Great AI Backlash Came for a Tiny Startup You’ve Probably Never Heard OfSouth Africa’s coal mining and power sector employs around 200,000 people, many in regions with poor infrastructure and high levels of poverty.
In a country where coal is also a major export, there are economic and political sensitivities around transitioning to renewables, and that poses a challenge in terms of how the project is framed. “Given the high unemployment rate in South Africa as well … you cannot sell it as a climate change intervention,” says Deborah Ramalope, head of climate policy analysis at the policy institute Climate Analytics in Berlin. “You really need to sell it as a socioeconomic intervention.
Using public finance to leverage private investment is a common and often successful practice, Mughogho says. The challenge is to make the investment prospects as attractive as possible. “Typically private finance will move away from something if they consider it to be too risky and they’re not getting the return that they need,” she says. “So as long as those risks have been clearly identified and then managed in some way, then the private sector should come through.
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