In South Africa, the national electricity production and distribution company, Eskom, plans to propose that part of the $8.5 billion obtained by the country during COP26 for decarbonization, take the form of loans to the government. These could then be converted into shares of the company if necessary.
Through this arrangement, Eskom could finance the closure of some coal-fired power plants and build environmentally friendly infrastructure to replace them. Indeed, the company is responsible for around 40% of the Rainbow Nation’s carbon emissions, notably through its 17 coal-fired power plants.
Ensuring a fair and inclusive transition by supporting regions and workers in coal industries affected by the fossil fuel phase-out thus remains a priority for Eskom and the South African government.
The National Treasury has not yet issued any comment on the company’s proposal.
www.ferroalloynet.com
