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Cop 27: S Africa needs more grant money for transition

  • Market: Coal
  • 08/11/22

A larger proportion of the funding pledged by international partners for South Africa's energy transition must be grants — rather than concessional or commercial loans — as the latter increase the country's debt burden, according to President Cyril Ramaphosa.

The South African government has found that only 2.7pc of the $8.5bn pledged last year by the US, the UK, the EU, France and Germany under the Just Energy Transition Partnership (JET-P) to support South Africa's transition was grant money, "while other portions were concessional loans, loans offered by development funding institutions as well as normal commercial institutions", Ramaphosa said.

Concessional loans are granted on more generous terms than market loans, with lower interest rates or grace periods for payment. The JET-P deal was signed during the Cop 26 UN climate conference last year to support South Africa's transition to a low-carbon economy and, specifically, to accelerate its phase-out of coal-fired power.

"The deal was quite historic in the sense that real money was committed," Ramaphosa said today at the Cop 27 UN climate conference in Sharm el-Sheikh, Egypt. But the financing mechanisms, both from public and commercial finance institutions, need to provide "good concessional loans and be upgraded towards grants and non-debt instruments", so it does not burden the country with more debt, he said. Ratings agency Fitch said earlier this year that South Africa's debt is still rising, despite increased revenues from higher commodities prices.

The JET-P ignited "hope that this partnership will offer ground-breaking processes for funding by developed countries, for the ambitious but necessary mitigation and adaptation goals of developing countries", Ramaphosa said. The partnership was quickly lauded as a model for how developing countries across the world can use international support to achieve their decarbonisation goals by moving towards cleaner energy sources, with talk of other partnerships underway with India, Indonesia or Senegal. But Ramaphosa said a reform of multilateral development banks, as well as international financing institutions, and the mobilisation of commercial banks is needed to meet the financial requirements of South Africa and many other developing countries.

The JET-P provides only a fraction of the funding that South Africa needs. The country will require around $98bn over the next five years to start its 20-year energy transition, according to the country's recently released Just Energy Transition Investment Plan. The plan includes a portfolio of investments across three priority sectors — electricity, green hydrogen and new energy vehicles.

"We have communicated [the amount we need for our transition] to our partners, and have said that because South Africa carries a sizeable loan burden, which it has to service from its fiscus, we require more grant funding," Ramaphosa said. At Cop 27, "we have been holding a number of bilateral meetings aimed at consolidating views on climate action, just transition as well as on funding processes. Our meetings have been beneficial", he said. "We hope that these discussions will continue in that vein," he added.

"We believe it is only with significant additional funding that we can ensure the future generation of South Africans live in an environment that has not been destroyed because of the inactions of today's leaders," Ramaphosa said, adding that African countries are losing 3-5pc of their GDP because of the effects of climate change.


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14/07/25

Trump amplifies attacks on renewable energy

Trump amplifies attacks on renewable energy

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Malaysia’s thermal coal imports edge higher in May


14/07/25
News
14/07/25

Malaysia’s thermal coal imports edge higher in May

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Trump threatens Mexico, EU with 30pc tariffs


12/07/25
News
12/07/25

Trump threatens Mexico, EU with 30pc tariffs

Washington, 12 July (Argus) — President Donald Trump on Saturday said the US will impose 30pc tariffs on goods imported from Mexico and the EU beginning on 1 August. In a move that could significantly disrupt crude, refined product and other commodity flows, Trump made public on his social media platform letters sent to Mexican president Claudia Sheinbaum and European Commission president Ursula von der Leyen on Friday threatening the new tariffs. Trump also vowed to raise the tariffs even higher if Mexico or the EU were to retaliate with their own measures. The threats follow similar letters sent to leaders of other countries this past week, including a 35pc tariff on Canadian imports , likewise starting on 1 August, and a 50pc tariff on Brazilian imports . In his letter to Sheinbaum, Trump repeated previous justifications for higher tariffs by pointing to "Mexico's failure to stop the Cartels" smuggling fentanyl into the US. "Mexico has been helping me secure the border, BUT, what Mexico has done is not enough," Trump wrote. "If for any reason you decide to raise your Tariffs, then whatever the number you choose to raise them by, will be added onto the 30pc that we charge," Trump wrote to Sheinbaum. His letter to von der Leyen included similar language. Trump's previous executive orders regarding tariffs on Mexico and Canada carved out exemptions for goods compliant with the US-Mexico-Canada free trade agreement. A White House official on Friday, following Trump's 10 July Canadian tariff announcement, said the exemption will remain in place, with a caveat that Trump has yet to determine the final form of application. Regarding the EU, Trump argued the 30pc figure "is far less than what is needed to eliminate the Trade Deficit disparity we have with the EU". Mexico's ministries of the economy, foreign affairs, finance, security and energy said in a statement Saturday that they met with their US counterparts on Friday to begin negotiations to head off the new tariffs before 1 August. "We stated at the meeting that [the new tariff plan] was unfair treatment and that we disagreed." After receipt of the new tariff letter, von der Leyen said Trump's tariffs "would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic". The US has clinched only one limited trade deal, which keeps in place a 10pc tariff on US imports from the UK while granting a lower-tariff import quota for UK-made cars. Trump has announced a deal with Vietnam, setting tariffs at 20pc. By David Ivanovich Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Workers extend strike at Australian coal mine


11/07/25
News
11/07/25

Workers extend strike at Australian coal mine

Sydney, 11 July (Argus) — Unionised workers have extended a strike at US producer Peabody Energy's Metropolitan coal mine in New South Wales, Australia, halting production until 17:30 AEST (07:30 GMT) on 11 July. Workers launched the day-long stoppage late on 10 July, extending the previous 24-hour strike , the Mining and Energy Union (MEU) told Argus on 11 July. Metropolitan has faced significant labour disruptions since 18 June, when Peabody locked workers out of the mixed thermal, hard coking and pulverised coal injection (PCI) mine, without pay, over an ongoing employment dispute. The company's lock-out ended late on 9 July. The MEU and Peabody are negotiating a new enterprise agreement, but remain at odds over multiple issues, including the use of contractors. Both have engaged in Fair Work Commission-led mediation three times — most recently on 8 July — since the dispute began, but have no further meetings scheduled. Metropolitan Coal remains fully committed to ongoing good faith negotiations with the union, a Peabody spokesperson told Argus on 10 July. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Workers strike at Australian coal mine: Correction


10/07/25
News
10/07/25

Workers strike at Australian coal mine: Correction

Corrects mine lock-out start date in paragraph 3 Sydney, 10 July (Argus) — Mining and Energy Union (MEU) workers at US producer Peabody Energy's Metropolitan mine in New South Wales are striking over an ongoing pay dispute, halting production until 5pm AEST (7am GMT) on 10 July. MEU launched a five-hour stoppage at 5pm on 9 July, before extending it to 12 hours. The unionised workers launched another 12-hour strike early on 10 July, the union told Argus on the same day. Peabody locked miners out of the mixed thermal, hard coking, and pulverised coal injection (PCI) mine from 18 June until 5:30pm on 9 July, without pay, over an increasingly acrimonious employment negotiation. MEU and Peabody negotiators are at odds over the use of contractors at Metropolitan, among other issues. They met for Fair Work Commission-led mediation during the lock-out on 8 July. Metropolitan Coal remains fully committed to ongoing good faith negotiations with the union, a Peabody spokesperson told Argus on 10 July. The MEU's latest strike comes a day after unionised workers at global producer Glencore's 20mn t/yr Ulan thermal coal mine launched a day-long strike, targeting some underground operations at the complex. The Ulan strike is set to end on 10 July. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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