UK Extends $1 Billion Climate-Pact Guarantee to South Africa

The UK and the African Development Bank extended a climate-linked $1 billion debt guarantee to South Africa, saving a $400 million municipal funding deal that was in jeopardy if it had expired.

The guarantee, part of a $10 billion climate-finance pact between South Africa and some of the world’s richest nations, was due to expire at the end of last year. The pact is known as the Just Energy Transition Partnership.

Its extension comes as South Africa negotiates with the AfDB over a $400 million loan for municipal energy and water services, to be guaranteed by the UK under that ...