South Africa: Just Energy Transition Partnership

Lord Collins of Highbury Excerpts

Thursday 30th June 2022 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, as I said to the noble Lord, Lord Oates, I agree, and we are very much at one. Perhaps I did a slight injustice in the brevity of my Answer to the noble Lord, Lord Oates: I pay tribute to his excellent work in re-establishing the APPG.

On my noble friend’s question, the United Kingdom has given a specific commitment to the partnership: of the overall initial $8.5 billion of public capital, the United Kingdom is providing $1.8 billion. We will be looking to see how we can leverage further financing in providing the terms needed to make that crucial energy shift from coal to more sustainable sources.

[Lord Collins of Highbury (Lab)]

My Lords, of course it is an excellent model and one to be followed, but lessons need to be learned so that it can be applied to other developing countries. Moving from 90% reliance on coal is a huge task, but other countries need to make the same sort of transition. One of the organisations the UK Government commit to is British International Investment—the old CDC. How will the lessons learned from this programme be adopted by British International Investment in terms of the transition programmes it operates?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I agree with the noble Lord. I will be open with noble Lords: when you sit down directly with many countries across the developing world, as I did at CHOGM last week, there can be quite challenging discussions at times over the issue of transition, particularly in light of the current global crisis and what we are seeing on energy prices from Ukraine and, indeed, on food prices. That said, I can assure the noble Lord, Lord Collins, that British International Investment, the UK development financial institution, is very much a part of this £1.8 billion commitment. In terms of lessons learned, I think the speed with which these structures can be set up is a direct learning but, equally, we need to ensure local buy-in. This is not about a country such as the United Kingdom prescribing a solution; it must come from within.