EU Partners with South Africa to Invest €280 Million in its Just and Green Recovery
As Team Europe, the EU and its Member States will invest more than €280 million in grants in South Africa, including €87.75 million from the EU budget, to support policy reforms on green recovery, unlock green investments and build a knowledge-based transition in the framework of the Just and Green Recovery Team Europe Initiative for South Africa launched today in Pretoria as part of Global Gateway.
Through this partnership with South Africa, the Just and Green Recovery Team Europe Initiative will support the country in achieving its national goal to tackle the country’s pressing socio-economic challenges through policy dialogue, facilitating investment, including for public infrastructure and to unlock a sustainable, biodiversity friendly and circular economy and combat climate change.
For example, €40 million of EU grant funding will be used to facilitate investment in public infrastructure in South Africa through blended finance. The EU will also support projects to boost greening of municipal services across South Africa. EU member states will also work on the repurposing of coal power plants for the green transition, improving energy efficiency in public buildings and accelerating circular economy start-ups.
Additionally, under the Just Energy Transition Partnership (JETP), Germany, France and the EU will provide financing of more than $3 billion to South Africa. The JETP will contribute to the objectives of the Team Europe Initiative for Just and Green Recovery. Both will be mutually reinforcing.
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Under Global Gateway, the EU and its Member States aim to mobilise up to €300 billion together with the European financial institutions to support the twin green and digital transitions in partner countries and bridge the funding gap for infrastructure for development. This includes €150 billion in Africa, with a considerable emphasis on renewable energy and on climate adaptation.
Under Global Gateway, the EU’s strategy for sustainable and trusted connections with partner countries, this new Team Europe Initiative with South Africa aims to foster an attractive investment climate and just energy transition that will in turn bring growth and jobs to the country.
The Team Europe Initiative, launched officially in Pretoria on 27 January in the margins of the Ministerial-level meeting between EU and South Africa, brings together the EU and Member States, namely Austria, Belgium, Czechia, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands and Sweden.
This collaboration with South Africa is an example of the EU’s wider agenda on climate action, with the EU providing the largest contribution to global climate finance – €23 billion in 2021.
The EU and its partners face the visible and palpable consequences of climate change that pose an existential threat to our societies. Together, the EU and our partner countries must do everything possible to limit global temperature rise to 1.5˚C by the end of this century.
Across all EU development and cooperation activities, including the Global Europe financial instrument (the primary financial instrument of the EU for partnerships outside Europe), 35% of support will contribute to climate-change objectives.
The fight against climate change is a global responsibility. The European Union wants to work with its partners around the world, in addressing this threat together – so our future generations can live on a safe and prosperous planet. Together with South Africa, we are committed to a decarbonisation pathway. The EU and its Member States will continue to partner with South Africa to implement the Just Energy Transition Partnership and making this journey just, not least with the Team Europe Initiative we are launching today.High Representative/Vice-President Josep Borrell
In order to reduce the devastating effects of climate change, and in today’s complex geopolitical context, building trusted and sustainable connections with our partner countries is more important than ever. Under Global Gateway, this new Team Europe Initiative with South Africa will support the country to take steps towards greening the economy and creating sustainable jobs. The EU is committed to strengthening its partnership with South Africa in the years to come.Jutta Urpilainen, Commissioner for International Partnerships