Government approves the launch of South African Renewables Initiative (SARi)
31 Oct 2011
The South African Renewables Initiative (SARi) will be launched during the United Nations Framework Convention on Climate Change (UNFCCC), Conference of the Parties (COP17), which will take place in Durban from November 28 to 9 December 2011.
SARi is aimed at catalysing the growth of a green industry through the financing of large-scale renewable generation capacity.
The objective of SARi, which is an integral part of the Industrial Policy Action Plan (IPAP) is to develop related industrial capabilities through the design of a financial solution for the roll-out of large-scale renewable generation capacity.
“SARi presents a key element in ensuring that South Africa meets the emissions targets set by President Jacob Zuma who, at COP15 in Copenhagen in 2009, committed South Africa to reducing its emissions trajectory to 34% below business as usual by 2020, and to 42% by 2025,” says the Minister of Trade and Industry, Dr Rob Davies.
The launch of SARi will be accompanied by the announcement of partnerships between the South African Government and international governments and Development Finance Institutions who will work together to explore possibilities for developing the enhanced financing arrangements needed to catalyse growth in the renewables industry.
Minister Davies adds that an initial design for a financing mechanism has been developed, which combines low-cost loans, insurance and other financial instruments with climate funding on a pay-for-performance basis.
“Success in the large-scale development of renewables could realise direct economic benefits of up to 40 000 jobs; contribute up to 15% of South Africa’s Copenhagen Commitment and decarbonise exports by up to 30% in increasingly carbon sensitive international markets,” adds Minister Davies.
The key task of the international partnership in 2012 will be to support South Africa to develop this concept into its operational financial mechanisms, and to secure funding to enable an ambitious scale up of renewables.
For more information on the South African Renewable Initiative, please go to www.sari.org.za.
Sidwell Medupe (Departmental Spokesperson)
Tel: 012 394 1650
Cell: 079 492 1774
Issued by: Department of Trade and Industry
31 Oct 2011
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