Unlocking Private Sector Investment for Low-Carbon Transition in South Africa : Assessing Investment Climate for Climate Investments
Just energy transition is key to South Africa’s inclusive and sustainable growth. It is necessary to unlock large pools of private capital and attract foreign investment to drive low-carbon transition. Despite downside risks, South Africa has stron...
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| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/426851614809793867/Unlocking-Private-Sector-Investment-for-Low-Carbon-Transition-in-South-Africa-Assessing-Investment-Climate-for-Climate-Investments http://hdl.handle.net/10986/35269 |
| Summary: | Just energy transition is key to South
Africa’s inclusive and sustainable growth. It is necessary
to unlock large pools of private capital and attract foreign
investment to drive low-carbon transition. Despite downside
risks, South Africa has strong macroeconomic fundamentals
and commitment to improving the overall investment climate.
Climate change poses considerable systematic risks, thus
needs to be urgently integrated into macroeconomic policy
and planning. Harness transition opportunity invest in
resilient infrastructure and create market for low-carbon
technologies to boost growth and strengthen the macro
investment climate. Implement carbon tax effectively and
raise policy ambition, supported by a fiscal framework
conducive for climate investments, as well as invest tax
revenues to support just transition. The current energy
crisis presents an opportunity for sector reform, regulatory
changes, and use of innovative financial solutions to
promote low-carbon private sector investments. The World
Bank has developed this discussion paper in response to the
government of South Africa’s request to analyze ways in
which private capital flows can be catalyzed and leveraged
for low-carbon investments. The focus of this paper is on
electricity generation sector and the industry sector. |
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