COP26 aiming to bring closures of Carbon Credits, Coal – South Africa’s Minister

By Nneka Nwogwugwu

South Africa’s Environment Minister, Barbara Creecy, wants COP26 to set an annual target of $750 billion to help poor countries transition to clean energy and protect themselves against climate change.

In the run up to the COP26 international climate talks, which begin Oct. 31 in Glasgow, African countries are positioning themselves to attract green finance.

In a few days, South Africa will receive a delegation from the U.S., U.K., Germany and France to discuss funding the gradual closure of some of the country’s coal-fired power plants. The country’s deputy finance minister earlier suggested that $15 billion of national debt be forgiven in exchange for phasing out coal.

AFC Capital this week announced plans to raise $2 billion for climate-resilient infrastructure on the continent. Gabon passed a law that will allow it to trade carbon credits generated from preserving its forests and a Kenyan geothermal-power utility plans to sell credits it accumulated over the past 18 months.

Africa is a rich hunting ground for those looking for climate-related finance opportunities. Coal-reliant countries like South Africa need money to transition. At the same time, the Congo Basin, which spans much of central Africa including Gabon, is the world’s second-biggest natural carbon store after the Amazon, providing ample opportunities to generate carbon credits.

With extreme weather events around the world, from hurricanes to wildfires, raising awareness about global warming, now is the time for Africa to tap into green finance.