By Fatima Saka
The governments of South Africa, with France, Germany, United Kingdom, United States of America, and the European Union together are forming the International Partners Group (IPG) to announced a new ambitious, long-term Just Energy Transition Partnership (JETP) to support the Republic of South Africa’s (RSA) decarbonization effort in the context of domestic climate policy, including transitioning its economy towards cleaner energy sources.
This follows the updated outcome of the United Nations Framework Convention on Climate Change (UNFCCC) COP26 Summit in November 2021.
The feature of the JETP is its emphasis on the centrality of a just transition in the structuring of the investment plan and financing package.
The JETP is a pathbreaking initiative and the first of its kind.
It is long-term and ambitious in its aspiration to support South Africa’s pathway to a low carbon economy and climate resilient society; to accelerate the just transition and the decarbonization of the electricity system (including rehabilitation and repurposing of mines); and to support the development of new economic opportunities such as green hydrogen and electric vehicles amongst other interventions to support RSA’s shift towards a greener future.
In line with the political declaration issued in November 2021, the IPG undertook to mobilise an initial amount of $8.5 billion over the next 3-5 years to advance the Partnership. It was determined that the Partners would within six months provide a leader level progress update.
The South Africa’s commitment to decarbonise its energy intensive economy as set out in its Nationally Determined Contribution (NDC), and the commitment of the IPG to support developing countries in achieving this in ways that are inclusive and equitable, the Partnership has the potential to provide a model that could be replicated across the globe.
In particular it has the potential to practically demonstrate how a just transition could be achieved and financed and to serve as a catalyst for a new inclusive development path in which every effort is made to leave no-one behind.
In order words, given South Africa’s vulnerability to the impacts of climate change, as tragically demonstrated by the recent devastating floods and loss of life and property in KwaZulu-Natal, the urgency of investments in climate-resilient infrastructure is clear.
Additionally, the JETP opens the way for long-term, ambitious and systemic climate actions to be funded through a range of instruments that support flexible and rapid implementation in ways that build confidence in a just energy transition.