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S Africa to launch Renewable Initiative at COP 17

0 Comment(s)Print E-mail Xinhua, November 1, 2011
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The South African Renewable Initiative (SARi) will be launched during the United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP 17), which will take place in Durban in late November, the government said on Monday.

Minister of Trade and Industry Rob Davies said SARi is aimed at catalyzing the growth of a green industry through the financing of large-scale renewable generation capacity

"The objective of SARi, which is an integral part of the Industrial Policy Action Plan (IPAP) is to develop related industrial capabilities through the design of a financial solution for the roll-out of large-scale renewable generation capacity.

"SARi presents a key element in ensuring that South Africa meets the emissions targets set by President Jacob Zuma who, at COP 15 in Copenhagen in 2009, committed South Africa to reducing its emissions trajectory to 34 percent below business as usual by 2020, and to 42 percent by 2025," Rob Davies said in a statement.

The government minister said the launch of SARi will be accompanied by the announcement of partnerships between the South African government and international governments and Development Finance Institutions who "will work together to explore possibilities for developing" the enhanced financing arrangements needed to catalyze growth in the renewables industry.

Minister Davies adds that an initial design for a financing mechanism has been developed, which combines low-cost loans, insurance and other financial instruments with climate funding on a pay-for-performance basis.

"Success in the large-scale development of renewables could realize direct economic benefits of up to 40,000 jobs ;contribute up to 15 percent of South Africa's Copenhagen Commitment and decarbonize exports by up to 30 percent in increasingly carbon sensitive international markets," Minister Davies said.

According to the government minister, the key task of the international partnership in 2012 will be to support South Africa to develop this concept into its operational financial mechanisms, and to secure funding to enable an ambitious scale up of renewable.

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