Climate fund considers India, South Africa to pilot $2bn coal transition scheme
Climate Investment Funds CEO Mafalda Duarte has been tasked with mobilising private capital to help wean developing countries off coal and create cleaner jobs
A climate fund is looking for two or three coal-dependent emerging economies to pilot a scheme to accelerate a shift to cleaner industries by mobilising private finance.
The Climate Investment Funds (CIFs) secured up to $2billion this year from G7 countries to help wean the world off coal as part of efforts to limit global heating to 1.5C – the tougher goal of the Paris Agreement.
“It is not enough to focus on clean energy investment,” Mafalda Duarte, CEO of the Climate Investment Funds, told Climate Home News in an interview. “Unless we focus on accelerating the pace at which we move away from coal, we are not going to meet the Paris Agreement goals.”
Earlier this year, Cop26 president designate Alok Sharma said the UK wanted to make the November Glasgow summit “the Cop that consigns coal to history”.
Duarte said the G7’s funding pledge was “a powerful signal” to developing nations that rich countries support their energy transition.
The CIFs is in the process of identifying two or three developing countries to pilot the programme and benefit from the first tranche of investment.
South Africa, India and Indonesia are potential candidates, where coal mining is a significant but precarious source of employment.
Earlier this week, Coal India, one of the world’s largest mining companies, responsible for around 80% of India’s coal output, announced it will cut its workforce by 5% every year for the next 5-10 years to reduce costs as it plans to close unviable mines. There was no mention of a plan to reskill workers.
Duarte urged all coal-dependent nations to get in touch. If successful, subject to support from donor countries, the programme could be extended.
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