Draft Scaling Finance to Support a Just Transition: The Potential of a JTFM

04 Dec 2023

This report was commissioned by the PCC to assess the challenges related to the financing of just transition projects, the existing financial architecture and ecosystem, and to subsequently provide options for a Just Transition Financing Mechanism. This report has been redrafted through a number of iterations, after two public consultations, a focus group discussion on just transition tagging and several bilateral engagements with institutions which are currently operating in the wider ecosystem of South Africa’s development finance sector and the private capital and financial markets. In particular, the PCC has been aware of the need to ensure alignment with the project management unit (PMU)’s mandate as it relates to implementing the Just Energy Transition Investment Plan (JET-IP), ensuring that all recommendations are consistent with the need to implement solutions urgently while envisioning a future system that allows for effective on-going success in developing, funding and implementation of just transition projects. This report is a product of the PCC’s considered and consulted view on imperatives for a Just Transition Financing Mechanism. Stakeholders are invited to submit written comments on this report from 5 December 2023 to 25 February 2024. All comments must be submitted to climate-fin@climatecommission.org.za.