Reform-FöK to support the Just Energy Transition II

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The aim of the project is to support the South African government in implementing comprehensive energy sector reforms. The reforms are based on South Africa's commitments under the Paris Climate Agreement and the National Determined Contributions (NDC) to reduce CO2 emissions, the level of ambition of which was recently increased by the South African side in preparation for the COP26 climate conference in Glasgow. The project also contributes to achieving the goals of the Just Energy Transition Partnership (JET-P) announced at COP26 by South Africa, France, Germany, Great Britain, the USA and the EU to support a socially acceptable energy transition in South Africa. To finance the project, an ODA-eligible promotional loan is to be provided to the Republic of South Africa in the form of a policy-based financing approach. This development policy instrument involves the negotiation of (sector) policy reform programs that are initiated and implemented by the partner government on its own initiative. If the agreed policy reforms are successfully implemented, the funds will be paid out. The policy-based financing approach is intended to support the implementation of reform measures that contribute to a socially acceptable and ecologically sustainable restructuring of the South African energy sector.