End of year message from the Deputy Chairperson, Mr Valli Moosa

In December last year we were appointed as the Presidential Climate Commission (PCC), constituted of ten government ministers and twenty-three non-government representatives from business, labour, civil society, and science-based organisations and led by President Cyril Ramaphosa.

The overall objective of the PCC is to provide independent expert advice on South Africa’s climate change response. The PCC must facilitate a common vision for a net- zero, climate resilient economy and society by 2050, engaging in detailed planning which responds to the needs for both climate change mitigation and adaptation.

We have started our work in earnest

As we conclude our first year of tenure, we share the following highlights

As the commission, we are tasked with brokering consensus between the social partners around a climate transition and advising on detailed pathways to a net-zero economy and climate-resilient society.

Over the last year, we have helped reshape the understanding between climate change and economic development; we have introduced new learnings, ideas, and solutions; we have fostered active discussions and debates; we have refined a vision for achieving a just transition; and we have influenced several major decisions taken by government.

Importantly we have conducted our work openly and transparently and innovatively in collaboration with all social partners — helping to develop a shared understanding of what it means to achieve a just transition and what it will take to get there.

This year the Commission met four times (on 19 February, 30 April, 30 July, and 21 October 2021), as well as holding a special meeting to consider South Africa’s Nationally Determined Contribution (on 4 June 2021). Amongst others, the Commission has discussed the importance of a just transition, the emissions trajectory to take the economy to net-zero emissions by 2050, initiatives undertaken by major emitters to get to net-zero, the opportunities that exist in the hydrogen economy, and the climate finance required to support a just energy transition.

The commitment to improving the lives and livelihoods of all South Africans is central to our mandate, particularly those who have been historically most marginalised, or those who are most at risk in the transition — whether it be smallholder farmers with decreasing yields because of climate change, or workers and communities affected by declining coal demand.

In September 2021, the South African government adopted the updated NDC, based on recommendations from the Presidential Climate Commission. For the first time, South Africa’s mitigation targets are in the range of what is necessary to limit warming to 1.5°C. This demonstrated important and very welcome leadership from President Ramaphosa and South Africa on the road to COP26 in Glasgow in November 2021.

Towards a Just Transition Framework for South Africa

The Presidential Climate Commission (PCC) is planning to develop and produce “A Just Transition Framework “in 2022 for approval by South Africa’s Cabinet.

The framework will provide the necessary foundation to guide other planning and policy-setting processes. In doing so, the just transition framework will bring coherence and coordination across all just transition planning in South Africa.

Despite the vastly different sectors represented on the Commission, I have been enormously gratified by the extent to which we have found consensus and been able to work together on critical issues. All the social partners, and all the Commissioners represented on the PCC, have embraced the concept of a just transition.

The just transition framework would define what a just transition means for South Africa, and what the responsibilities of the different social partners are in giving effect to it. The framework will be a strategic plan for achieving a just and equitable transition to net-zero CO2 emissions in South Africa, setting out the actions that social partners will take over the short, medium, and long-run.

As part of the development of the framework, this year we held a series of dialogues with stakeholders, members of the public and commissioners on topical issues around the just transition – for instance, the impact on the coal value chain, how to expand employment and decent jobs through the transition, how to finance the transition, what governance arrangements are required to effect the transition, and how to ensure resource security, such as water and energy.

The PCC will also seek input from rural communities, affected by catastrophic climate change building up to a multi-stakeholder conference on the just transition in 2022 for a final report to the social partners by mid-2022.

The PCC will reach out and meet directly with those affected like coal miners who have already lost jobs, workers in coal-fired power stations who stand to lose jobs through decommissioning as well as those who live in the surrounding communities and are dependent on that mining activity to support their livelihoods.

We are exploring solid financing partnerships

The Commission is also focused on supporting public and private sector efforts in mobilising the necessary finance and investment to optimise South Africa’s advantage in seizing new opportunities created by a greener and more sustainable economy.

Building on the ambitious new climate commitments, at COP26, South Africa announced a historic partnership with France, Germany, the United Kingdom the United States, and the European Union to mobilise an initial $8.5 billion over the next three to five years to support a just transition towards a low emissions and climate resilient economy. This partnership builds on a series of debates and discussions convened by the Presidential Climate Commission with key stakeholders, among others, on the importance of international finance in meeting South Africa’s climate and development objectives.

The climate finance deal announced at COP26 could accelerate the decommissioning of coal fired power stations, build publicly owned renewable generation, upgrade the grid, and repurpose coal fired power stations, and to preserve jobs acting in our national interests. Furthermore, developed nations have a responsibility - and an obligation - to pay for it. We should all be rallying around the

Just Energy Transaction and making sure it happens. The new partnership presents a significant opportunity to accelerate investments in renewable energy in South Africa, while also ensuring a just transition for workers as coal is phased out. The initiative will also spur innovation across a range of sectors, including electric vehicles and green hydrogen, and support a thriving economy in the years to come. And the deal places much-needed emphasis on ensuring that everyone benefits in a shift to a more sustainable economy, especially the poorest and most vulnerable communities, while also ensuring a just transition for workers.

Importantly, the deal places at its core, the much-needed emphasis on ensuring that everyone benefits in a shift to a more sustainable economy, especially the poorest and most vulnerable communities, while also ensuring a just transition for workers.

An institutional foundation is the backbone of our success

We have also been strengthening our capacity to ensure we are well equipped for the next phase. We have a committed group of Commissioners who represent the views of all social partners in South Africa.

The Commission has been developing a Charter to guide the way we conduct our business, which we hope will be submitted to Cabinet for approval soon. The Commission’s Secretariat continues to strengthen its capacity to ensure it is well equipped to support the PCC’s next phase of work.

We are also planning for the interim hosting of the PCC at NEDLAC, a public entity with a social compacting function that is closely aligned with the mandate the President has given the PCC. This hosting arrangement is proposed as an interim arrangement until such time that the Climate Change Bill (currently with Parliament) is promulgated.

A full time Secretariat has been appointed to support the work of the Commission. The Secretariat is led by the Executive Director, Dr Crispian Olver with experienced and highly qualified managers covering key areas such as mitigation, adaptation, finance and communications and the overall strategic operations of the PCC led by Chief Operations Officer, Dr Thulie Khumalo.

The Secretariat provides support to the Commission for its work including research work to support the development of science-based climate policy for a just transition including work on climate mitigation, adaptation, and finance, and additional logistical support for PCC meetings

A special thank you

On behalf of the commission, special word of appreciation to our partners and to all South Africans who have taken keen interest in our work.

We have been gratified by the participation of some of the country’s key leaders and thinkers in our deliberations. This has included the Most Reverend Thabo Makgoba (Anglican Archbishop of Cape Town and Primate of Southern Africa), Mr Bheki Ntshalintshali (Secretary-General of COSATU), Professor Malegapuru Makgoba (outgoing Chair of the National Planning Commission), Mr Mark Cutifani (CEO of Anglo American), Mr Andre de Ruyter (CEO of Eskom), Mr Fleetwood Grobler (CEO of SASOL) and Mr Mxolisi Mgojo (CEO of Exxaro).

We remain grateful to the African Climate Foundation (ACF), Department of Forestry, Fisheries, and Environment, and other social and donor partners who have provided the necessary support to the Commission.

We urge all partners to continue to support the work of the commission, which has come into operation at an appropriate time both locally and internationally, with everyone agreeing that climate change to have profound impacts all of society.