Presidential Climate Commission Welcomes Announcement on Multilateral Just Energy Transition Finance

The Deputy Chairperson of the Presidential Commission on Climate Change, Mr Valli Moosa, has welcomed the announcement of a multilateral Just Energy Transition partnership between South Africa and the major economies of France, Germany, United Kingdom, United States, and the European Union.

The USD 8.5 billion (R131 billion) financial package disbursed over a three-to-five-year period will serve as needed accelerant to the decarbonisation of the South African economy and support a just transition which prioritises the needs of workers and vulnerable communities.

Notably, the Commission is encouraged by the financing’s focus on critical investment in renewable energy, the development of new sectors including the local production of electric vehicles, and green hydrogen.

The notion of just transition incorporates interventions needed to secure livelihoods when economies are shifting to sustainable production and consumption, including addressing climate mitigation and adaptation first introduced into policymaking in 2012 through the National Development Plan (NDP). This was followed by the introduction of policy instruments like the National Climate Change Priority Response White Paper and SA’s Nationally Determined Contribution (NDC) under the Paris Agreement and the recent Climate Change Bill, adopted by Cabinet for recommendation to Parliament in September

“As we grapple with the consolidation of our country’s just transition framework, we believe that today’s announcement has demonstrated the commitment and resolve of our government and industry to seek innovative funding and investment mechanisms to support our decarbonization efforts and ultimately propel us to reach our ambitious emissions targets as set out in the recently updated Nationally Determined Contribution,” said Mr Moosa.

“In the onset, we have all appreciated that robust funding strategies and public- private partnerships are required to enable delivery of desired outcomes at a national level and this partnership comes at a time when our climate transition remains constrained by weak economic conditions, skills shortages, and a slim fiscal position needed to resource and enable a just transition” Added Mr Moosa.

The combination of grant and concessionary finance towards the implementation of South Africa’s greater level of ambition as stated in its updated Nationally Determined Contribution will likely prove an important support for South Africa’s continued efforts to spur economic growth and increase long term employment as the country embarks on its transition to a low-carbon and climate resilient economy and society.

“The PCC is part of Team South Africa attending the UN Climate Change Conference, the 26th Conference of Parties (COP 26) in Glasgow, United Kingdom where it will use the opportunity to interact with various partners to learn and exchange best practice in how various countries are developing and enhancing their just transition frameworks and policy to further enhance the convening and negotiating might of our country delegation at COP26, and we wish them well” added Moosa.