During COP26 the first JETP (Just Energy Transition Partnership) was created: a partnership in which Western countries committed to financially supporting South Africa’s energy transition for a sum of 8.5 billion dollars (8 billion euros ). The pledged amount has now reached nearly $13 billion, according to the Presidential Climate Commission, with additional pledges from other countries. But there are still many challenges to overcome.
From the first JETP an investment plan emerged which estimates a need of over 90 billion euros to achieve an energy transition by 2027. In addition to the fact that the budget of the initial partnership is therefore far from the target, and it mainly involves loans and not grants, the distribution of funds is too complicated in the eyes of the South African authorities. “ Each country brings money separately, deplores Joanne Yawitch, who manages project funding within the presidency. It’s not like we had direct access to a lump sum. British contributions are made in this way, American contributions through another mechanism and for other purposes… This is a fairly complex set of investments, with each country using its usual method of financing with South Africa. »
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Citizens are not consulted
On the part of civil society, we already deplore the lack of transparency in terms of distribution of subsidies, but also in the choice of the three priority sectors: decarbonisation of electricity, electric vehicles and green hydrogen. “ I think there was a lot of skepticism because the priority sectors were selected before consulting the citizens, notes Leanne Govindsamy of the Center for Environmental Rights (ERC). For example, so far, when it comes to subsidies, more money has been spent on green hydrogen than on developing new skills. We can then question these choices and ask ourselves whether donor countries present themselves with their predetermined ideas or whether they listen to find out what might work best in South Africa. »
Giving up coal is difficult
After further consultations, an action plan finally included other components to be financed. But Pretoria has also since decided to delay the decommissioning of at least three of its power stations for six years. It’s not easy for the country, which produces almost 80%. coal-based electricityto make a quick transition. “ We had no problems with energy shortage in South Africa, explains Seutame Maimele, from the TIPS (Trade and Industrial Policy Strategies) research institute. Therefore, the issue of energy security is a key topic. And we also know that many coal workers will be affected, especially in the Mpumalanga region. In total we are talking about 150,000-200,000 jobs depending on the sector. »
Shortly before COP29, the French Development Agency (AFD) announced a release of 400 million euros, a loan that is part of the promises of COP26, and which should be used to support the scale” fair” of the transition. But the failed example of the transformation of the Komati power plant site, a project financed by World Bank and which has brought little benefit to local populations since 2022, reinforces the doubts of South African communities that live on coal.
Many other questions remain unanswered, such as the choice of the country’s future energy mix. But the continent’s biggest polluter will be forced to transform its means of production if it wants to continue exporting to Europe despite the carbon tax at the borders.
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How can community engagement enhance the effectiveness of the Just Energy Transition Partnership in South Africa?
Interview between Time.news Editor and Energy Transition Expert
Time.news Editor: Thank you for joining us today. You’ve been closely following the developments around the Just Energy Transition Partnership, or JETP, since it was established during COP26. Can you outline what the JETP entails and the significance of the South Africa partnership?
Expert: Absolutely, and thank you for having me. The JETP is a groundbreaking initiative where Western countries pledged a total of $8.5 billion to support South Africa’s transition away from coal and towards more sustainable energy sources. This partnership has since expanded, with total pledges reaching nearly $13 billion. It’s significant because it aims not only to reduce carbon emissions in South Africa but also to provide the financial backing necessary for a transition that supports social equity.
Time.news Editor: That’s a considerable amount, yet the investment plan indicates a need of over 90 billion euros to achieve this transition by 2027. Why is there such a disparity between the pledges and the actual financial requirements?
Expert: This disparity highlights several complex issues. First and foremost, the initial partnership largely consists of loans rather than grants, which makes access to funds challenging for South African authorities. Furthermore, the distribution of this funding is excessively complicated. Different countries have different mechanisms and purposes for their contributions, which can create bottlenecks. As Joanne Yawitch pointed out, having multiple funding streams complicates access for the very projects that need support.
Time.news Editor: There’s also a perception of a lack of transparency in how these funds are being allocated, particularly concerning priority sectors like decarbonisation of electricity and the emphasis on green hydrogen. Can you explain the concerns from civil society regarding this?
Expert: Certainly. Many civil society groups are advocating for greater consultation processes that involve citizens in the decision-making. According to Leanne Govindsamy from the Center for Environmental Rights, the priorities were set without engaging the community. This raises important questions about whether these decisions are aligned with local needs or are being driven by the agendas of donor countries. The allocation of funding, especially focused more on green hydrogen than on developing local skills, threatens to sideline critical social aspects of the energy transition.
Time.news Editor: It seems that there are multiple layers of complexity. Beyond finance, what are some significant challenges South Africa is facing in its energy transition?
Expert: One of the most pressing challenges is the political and social implications of phasing out coal. South Africa has a heavy reliance on coal—not just as an energy source but as a significant part of its economy and job market. The decision to delay the decommissioning of coal plants indicates a struggle to balance climate commitments with economic realities. Addressing these complexities requires not only financial resources but also a structured, empathetic approach that considers the livelihoods of those affected by the transition.
Time.news Editor: As we look ahead, what steps do you think are crucial for South Africa to realistically meet its energy transition goals?
Expert: The most crucial steps would include streamlining funding mechanisms to allow quicker, more direct access to capital. Engaging with local communities for input on energy priorities is vital to ensure that the transition aligns with their needs. Additionally, investing in skill development is essential to prepare the workforce for a green economy. Lastly, ongoing dialogue between the South African government and international partners will be key to adapting strategies as needed throughout this transition.
Time.news Editor: Thank you for your insights. There’s clearly a lot at stake, both for South Africa and for the global climate movement. We appreciate you sharing your expertise with us today.
Expert: Thank you for having me. It’s an important conversation, and I hope to see meaningful engagement moving forward.