As part of its climate action and the development of its electricity sector, South Africa has started integrating renewable energies into its energy mix. IFC and Nedbank plan to accelerate funding for these projects.
The International Finance Corporation (IFC), a member of the World Bank Group, has partnered with Nedbank Limited in South Africa to increase green finance for renewable energy in the country.
The aim of this partnership is to enable the energy transition, the reduction of greenhouse gas emissions and the creation of jobs in the renewable energy sector. Under the terms of the bilateral agreement, IFC will provide the Rainbow Nation with a loan of $200 million to help scale up green finance operations.
Reduce dependence on coal
This agreement is part of the institution’s broader objectives : to develop South Africa’s climate finance market and support the government’s strategy for transitioning to a low-carbon economy. The country plans to reduce its emissions by 42% by 2025, and to diversify its electricity production by 2050 in order to reduce its dependence on coal.
Nedbank is the first South African bank to achieve carbon neutrality and issue the first green bonds on the South African Stock Exchange.
The IFC estimates that the ecological transition of the sustainable energy and urban infrastructure sectors has an investment potential of $ 588 billion by 2030 for South Africa.