Tshabalala: Africa needs to eventually contribute net zero carbon emissions
Standard Bank Group CEO Sim Tshabalala reiterated the bank’s commitment to its climate policy and sustainable finance targets. The bank has committed to mobilise a cumulative amount of R250 billion in sustainable finance by the end of 2026 and managed to reach R129.6 billion of this funding thus far. CNBC Africa spoke to him about the energy transition, examining how the global North and South can jointly tackle climate change in a just and equitable manner.
Tue, 01 Oct 2024 15:15:27 GMT
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AI Generated Summary
- Significant funding challenges exist for energy infrastructure development in Africa, with South Africa alone needing 1.5 trillion rand by 2027 to address electricity access, skills training, and technology utilization.
- Africa possesses substantial financial resources, such as $2.4 trillion in pension funds, but faces obstacles like the 'Africa perception risk premium' that increases capital costs due to misconceptions about the continent's risk profile.
- Standard Bank Group is on track to mobilise R250 billion in sustainable finance by 2026, aiming to achieve net zero emissions by 2050 and engaging with stakeholders to navigate complexities and differences in sustainability and climate finance discussions.
Standard Bank Group CEO Sim Tshabalala has reiterated the bank's dedication to its climate policy and sustainable finance targets. The bank aims to mobilise a cumulative amount of R250 billion in sustainable finance by the end of 2026 and has already reached R129.6 billion towards this goal. In an interview with CNBC Africa, Tshabalala discussed the challenges and opportunities in the energy transition, emphasizing the importance of Africa contributing to net zero carbon emissions by 2050 in alignment with the Paris Agreement and ensuring a just transition. He highlighted the trilemma of sustainability, security, and affordability in the energy sector, particularly focusing on providing electricity access to the 600 million people in Africa while addressing affordability and sustainability concerns. Tshabalala underscored the significant funding requirements for energy infrastructure in South Africa and the continent as a whole, emphasizing the need for innovative solutions and collaborative efforts to secure financing. He pointed out the abundant financial resources available in Africa, including pension funds, and stressed the importance of overcoming the 'Africa perception risk premium' to attract more investment at reasonable costs.
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