MEDIA RELEASE PCC WELCOMES THE ADOPTION OF JUST TRANSITION FRAMEWORK

PCC WELCOMES THE ADOPTION OF JUST TRANSITION FRAMEWORK BY CABINET AS SOUTH AFRICA GEARS UP FOR JUST URBAN AND ENERGY TRANSITIONS.

JOHANNESBURG, 2 September 2022

The Presidential Climate Commission (PCC) convened its third quarterly meeting on 2 September 2022, chaired by The Deputy Chair of the PCC, Valli Moosa. The meeting discussed various issues including Just Urban Transition (JUT); the acceleration of the transition to electric motor vehicles (EMVs); Just Energy Transition Partnership (JETP), and preparations for South Africa’s participation to the UNFCCC 27th Conference of Parties (COP27).

Approval of the Just Transition Framework by Cabinet

The PCC welcomed the Approval of the Just Transition Framework for South Africa. Adopted with broad consensus, the Framework puts South Africa on a path towards reaching climate and development aspirations, implementing policies and measures that support environmental justice and equity, and ensuring progress toward the national goal of reaching climate resilience and net-zero carbon emissions by 2050.

The Just Transition Framework was developed by the Presidential Climate Commission (PCC), building on more than a year of evidence-based analysis, community consultations, and engagements with all major stakeholder groups. The Framework reflects South Africa’s deep expertise in climate and development planning.

“The adoption of the Just Transition Framework presents a guiding beacon in our nation’s transition to a low emissions economy and climate resilient society, while keeping human development concerns at the center. I commend the Presidential Climate Commission’s genuine engagement and consultation in developing a Framework that is shared by all.”

“When we began developing the Just Transition Framework, we asked if communities and workers could seize the opportunities of a greener future while managing risks. The answer is a resounding yes,” said Valli Moosa Deputy Chairperson of the PCC. “In fact, South Africans can benefit in the transition if appropriate measures are put in place, like social support programs, active labour markets, and economic diversification and innovation. But there is no time to waste.”

Spurring the Shift to New Energy Vehicles

Minister of Trade, Industry and Competition Mr Ebrahim Patel provided an overview of South Africa’s New Energy Vehicle (NEV) Roadmap, which responds to the significant challenges and opportunities presented in the global transition to clean energy vehicles and the auto sector’s contribution to the South African economy, in terms of employment, tax and overall GDP.

Accordingly, Minister Patel outlined the imperative of South Africa’s transition to NEVs and the plans to this end, the means to give effect to the transition to NEVs, including a support package, a focus on at-risk export markets, the identification of components that can be locally produced, and incentives for local motorists to shift to NEVs.

Implementing a Just Urban Transition

The meeting received a presentation from Executive Mayor, Dr Mpho Phalatse (City of Johannesburg) who outlined the Climate Action Plan for the city, which supports the global goals of the Paris Agreement, including reaching net-zero emissions and climate resilience by mid-century

Mayor Phalatse underscored the just transition imperative for cities to improve energy security, address deep seated inequalities rooted from apartheid, create jobs, kickstart the economic recovery, and committed to work together with the Commission in supporting national efforts for a just transition.

“City Power (the distribution entity for the City of Johannesburg) will be issuing an IPP process, including for gas and solar, in September to support energy security in the city and reduce GHG emissions, as a demonstration of action in this area of our work” she said.

The meeting highlighted the need for a just transition in South African cities and expressed concern about the poor performance of economic assets, including in cities, in delivering just, inclusive, and sustainable growth.

The Road to COP27

Minister Barbara Creecy of the Department of Forestry, Fisheries and Environment made a presentation on COP27, to be held in Sharm El Sheikh in November and affirmed South Africa’s agenda for COP27, which covers adaptation (concrete goals and funding, including the doubling finance by 2025), mitigation, finance (accelerating developed country commitments), and loss and damage

“COP27 presents an opportunity for African countries to advance African priorities. South Africa remains concerned about developed countries backtracking on climate commitments and is focused on several issues: (1) just transitions for Africa, starting with energy transition and finance, (2) increasing funding towards the global goal for adaptation, and (3) loss and damage.” She said.

Minister Creecy said that a key outcome of COP27 is the establishment of a “Just Energy Transition Financing Framework,” which is people centred, and would further enable ambitious climate action by developing countries through the provision of adequate finance.

Financing a Just Transition

Dr Chantal Naidoo, representing the Presidential Climate Finance Task Team (PCFTT), updated the PCC on progress towards finalising the $8.5 billion Just Energy Transition Partnership Investment Plan (JETP-IP). Dr Naidoo highlighted the range of engagements and consultations that have taken place and are ongoing, including with the donor countries and a range of constituencies.

The Commission recommended that, the PCFTT should in its next seating present more information on JETP-IP, including specifics on the deal structure, conditionalities, the new money coming in, consideration of social justice issues, the long-term sustainability of projects that will be initiated through the deal, and consideration of how the initial investment will be used to attract additional investments.

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