South Africa's Just Energy Transition Investment Plan

South Africa's Just Energy Transition Investment Plan (JET-IP)

The years ahead will be marked by steadily increasing global mean temperatures with associated physical impacts, alongside the increasing urgency of the global mitigation response. In the next years, the global energy transition will accelerate, with increasing pressure on disinvestment in fossil fuels.

A just transition to a low-carbon economy will benefit all South Africans by driving economic growth, creating jobs, and increasing our energy security, while addressing the serious threat of climate change.

Our Just Energy Transition Investment Plan (JET IP) for the five-year period 2023-2027 sets out the scale of need and the investments required to achieve the decarbonisation commitments in our Nationally Determined Contribution (NDC), which outlines the rate at which South Africa plans to reduce greenhouse gas emissions and represents South Africa’s fair contribution to the goals of the Paris Agreement.

The Investment Plan supports South Africa’s goal of achieving a low carbon economy and a climate resilient society through the following interventions

Creating quality jobs in new sectors like electric vehicles, green hydrogen, renewable energy, and manufacturing
Increasing our energy security and ending load shedding through a massive rollout of new, sustainable energy sources
Addressing the risks of climate change and positioning South Africa to be an important global player in the green economy of the future
Boosting economic growth through more than R1 trillion of new investment in the South African economy

The JETP shows the commitment of the partners to enable a just transition in South Africa that recognises the direct and indirect impact that the energy transition has on livelihoods, workers and communities.

It is about addressing the global risks of climate change, while creating jobs and driving more rapid and inclusive economic growth. It is about translating commitments into reality, enabling stronger and deeper collaboration, and facing up to the greatest challenge of our times.

The Just Energy Transition Partnership

The JET IP gives effect to the historic Just Energy Transition Partnership (JETP) which was forged at the COP26 Climate Summit in 2021 between South Africa and France, Germany, United Kingdom, United States, and the European Union. The JETP followed engagements between the parties on the unique economic and social challenges of transitioning South Africa’s fossil fuel dependent economy in a just manner.

The Political Declaration provides that the international partners will mobilise an initial US$8.5 billion between 2023 and 2027, subject to agreement on an investment framework. This catalytic financing is intended to leverage a much greater level of resources from both private and public sources.

The JETP Political Declaration says the government’s aim to “establish an ambitious long-term partnership to support South Africa’s pathway to low emissions and climate resilient development, to accelerate the just transition and the decarbonisation of the electricity system, and to develop new economic opportunities such as green hydrogen and electric vehicles amongst other interventions to support South Africa’s shift towards a low carbon future.”

The JETP identifies three priority areas to support the economy of the future: the electricity sector, New Energy Vehicles (NEV) and Green Hydrogen.

The Presidential Climate Finance Task Team

President Cyril Ramaphosa established the Presidential Climate Finance Task Team (PCFTT) in February 2022 to mobilise financing for the just energy transition, develop South Africa’s investment plan, and make recommendations on the financing package to an Inter-Ministerial Committee.

The PCFTT is led by Mr Daniel Mminele and supported by an independent technical secretariat, working collaboratively with the National Planning Commission, the Presidential Climate Commssion and other state departments and socila partners

Key Documents

You can download the Investment Plan and other documents on the links below

Just Energy Transition Investment Plan for South Africa (Executive Summary and Full Document), November 2022
A Just Transition Framework for South Africa, June 2022
Political Declaration of the International Partners Group Leaders
South Africa’s Nationally Determined Contribution - Updated September 2021
Our Future, Make it work - South Africa’s National Development Plan (NDP 2030)

SPEECHES AND PRESENTATIONS

President Cyril Ramaphosa – Special PCC Meeting 3 November 2022
President Cyril Ramaphosa - Address to the the UNFCC COP 27, Egypts Sharm El Sheik , 8 November 2022
Presentation - SA Just Energy Transition Investent Plan Specila Sitting of the PCC, 4 November 2022, Mr Daniel Mminele

MEDIA STATEMENTS

Media Statement , President Ramaphosa outlines South Africa’s Just Energy Transition Investment Plan, Presidency 4 November , 2022
Media Statement ; Climate Commission welcomes government’s Just Energy Transition Investment Plan and pledges to mobilize public engagement , 5 November , 2022

ENDORSEMENTS AND PARTNERS

Global Philanthropies Message of Support
Statement of Endorsement Glasgow Financial Alliance for Net Zero (GFANZ)

STAKEHOLDER AND PUBLIC CONSULTATIONS

At the request of the President, and following its successful launch at COP27, the PCC is initiating consultations on the Just Energy Transition Investment Plan with and intention to consolidate inputs into a set of recommendations to the President and government by the Commission.

Further information regarding planned stakeholder engagements will be communicated in due course and Stakeholders who wish to make further written submissions on the JET-IP are encouraged to do so by email to jet-ip@climatecommission.org.za