The EU committed an initial $5.11 billion to support the initiative.

Tau made the announcement during the tabling of his department's budget vote in Parliament, highlighting the strategic importance of clean trade in boosting economic growth and sustainability.

“We had a summit with the EU where we agreed on developing a model trade agreement, the Clean Trade Investment Partnership,” said Tau.

“They have committed to an initial $5.11 billion to facilitate clean trade investment between our respective countries.”

The EU, as a union of member states, is SA’s largest trading bloc and one of its most important economic partners. Tau said the agreement aligns with SA's push to leverage green and sustainable trade opportunities to foster inclusive industrial development.

He stressed that the partnership is not only about securing funds but also about identifying and unlocking long-term clean trade prospects.

“We did that because we understand the opportunities that lie in facilitating clean trade investments with the EU,” Tau said, underscoring the growing global shift toward greener economies and trade models.

The partnership is expected to boost co-operation in key sectors such as renewable energy, climate-smart agriculture, sustainable manufacturing and environmentally responsible resource extraction.

Tau said further details on how the funds will be allocated and implemented will be released in the coming months as the two sides work to finalise operational frameworks and project pipelines.

--SABC/ChannelAfrica--