South Africa, one of the world’s largest greenhouse gas emitters, will require at least half-a-trillion dollars to achieve carbon neutrality by 2050, the World Bank has said.
In a published report, the bank said financing requirements associated with the transitions could amount to 4.4 percent of GDP per year, or 8.5 trillion rand (about $500 billion) between this year and 2050.
In light of the government’s limited fiscal capacity, the domestic private sector and external financing will be required for the transition.
Last year, South Africa, the continent’s most industrialised economy, secured $8.5 billion in loans and grants from a group of rich nations to finance the transition to cleaner energy sources.