Two years after securing a significant concessional finance commitment at COP26, South Africa finds itself facing a substantial shortfall in climate financing. Despite additional pledges, a recent study reveals that to achieve its most ambitious emission reduction goals, the country would require triple the amount pledged at COP26 annually.

The Presidential Climate Commission (PCC) report indicates that while climate finance in South Africa reached an all-time high average of R131 billion per year, this falls far short of the estimated needs for emission reduction targets. The report highlights a pressing need for increased funding, specifying a requirement of R334 to R535 billion per year, far exceeding current financial flows.

A major portion of the climate finance tracked originates from domestic sources, particularly private actors, amounting to R113 billion per year. However, the study emphasizes the necessity for a significant increase, estimating that South Africa needs to attract three to five times the current annual average to meet its net-zero goal by 2050.

Moreover, the Just Energy Transition Investment Plan (JET-IP), intended to shift towards renewable energy, received partial funding from the International Partner Group (IPG) at COP27, covering only a fraction of the funding required. South Africa continues to work towards increasing commitments to bridge the substantial financial gap, as discussions persist at COP28 in Dubai.

Key concerns voiced by South African negotiators at COP28 revolve around securing adequate, predictable, and scaled-up means of implementation support for their climate actions. The focus remains on advocating for substantially scaled-up, long-term financial goals aligned with the country's needs, emphasizing the urgency of global economic reforms and equitable financial support for developing nations.

As the negotiations unfold, South Africa endeavours to sustain momentum for global reforms while seeking enhanced, tailored financial commitments crucial for the country's transition towards achieving ambitious emission reduction targets.