President Cyril Ramaphosa has welcomed the decision to set up the loss and damage fund at the COP28 summit in Dubai.
Ramaphosa said the fund will grow as more countries will continue to make pledges.
Major economies including the United States of America, the United Kingdom, Japan, Germany, the United Arab Emirates, and the European Union have pledged $420 million (around R7.8 billion) to the fund.
More countries have expressed willingness to contribute to the loss and damage fund that has been in the making for some time.
The World Bank will initially host the fund. The fund will assist developing countries that are bearing the brunt of climate change.
Ramaphosa said on Sunday the agreement was a milestone.
“South Africa applauds the landmark decision of COP28 to operationalise the new fund on loss and damage, and welcomes the pledges that have already been made,” said Ramaphosa.
“We would like to see the fund growing along with the implementation of all other commitments that have been made thus far.”
Ramaphosa also handed United Nations Secretary-General Antonio Guterres the country’s implementation plan of the Just Energy Transition Investment Plan.
South Africa was given $8.5 billion (around R158bn) by major economies to implement the just energy transition.
He said the plan needs more funding to help communities that will be affected by the decision to move away from fossil fuel to renewable plan.
But Minister of Electricity Kgosientsho Ramokgopa and Minister of Minerals and Energy Gwede Mantashe have said there was no need for the country to quickly shut down coal-fired powered power stations.
They said moving to clean energy will take time as they need to stabilise electricity supply in the midst of power cuts.
They said power stations identified for decommissioning would have to delay this process until there was energy security.
Ramokgopa has said South Africa will not transition from coal in darkness.
IOL Politics