The Just Energy Transition

Building A Pathway Towards A Low-carbon and Climate Resilient Society

By Shumirai Chimombe

While the world is grappling with the drastic effects of climate change, South Africa is no exception. The country faces significant climate and energy risks due to its reliance on coal alongside high levels of poverty, inequality, unemployment and energy insecurity.

In response to these challenges South Africa launched the Just Energy Transition (JET) in 2021 during COP26. JET is a comprehensive drive to reduce the country’s reliance on fossil fuels and to shift towards cleaner sources of energy, while fostering economic and social growth in the process. The transition focuses on decarbonising key sectors, including electricity, new energy vehicles, and green hydrogen.

‘Transition’ describes the gradual movement towards lower carbon technologies, while ‘Just’ qualifies that this transition will not negatively impact society, jobs and livelihoods” - Eskom

The Just Energy Transition Investment Plan (JET IP), for the five-year period 2023-2027, supports South Africa’s goal of achieving a low-carbon economy and a climate-resilient society. It entails addressing the global risks of climate change, while creating jobs and driving more rapid and inclusive economic growth. It identifies the interventions and investments needed for the country to meet its decarbonisation commitments and deliver just outcomes for those affected by the energy transition.

In January 2023, the Presidency established the JET Project Management Unit (PMU) to prepare and drive an implementation roadmap for the JET IP. In 2024 JET was set in motion following the approval by Cabinet of the Implementation Plan 2023-2027. It defines shortand medium-term outcomes in six portfolios: Decarbonising the electricity sector, Mpumalanga Just Transition, New Energy Vehicles (NEVs), Green Hydrogen (GH2), Skills development, and Municipal capacity.

The just energy transition will be a managed, phased, long-term process of economic, social, and environmental change. It will involve multi-year, multi-sectoral, and multi-jurisdictional initiatives with many stakeholders, including significant capacity building to manage the scale of the transition.

“A well-managed “Just Energy Transition” can be a strong driver for new jobs, better jobs, social justice, and poverty eradication.” -Presidential Climate Commission

A R2-billion Boost For Just Transition Projects

“The challenging global context has not deterred our commitment to the Just Energy Transition Partnership with South Africa. It has reaffirmed it” - International Partners Group

Following the second G20 Energy Transitions working group meeting that took place from 20 April to 2 May in Cape Town, the International Partners Group (IPG) released a joint opinion piece on 7 May reaffirming its commitment to its partnership with South Africa.

The IPG consists of the donor countries United Kingdom, Germany, France, the European Union, Denmark and the Netherlands that support the decarbonisation of the South

African economy. It does this by mobilising financing various mechanisms including grants, concessional loans and investments and risk sharing instruments, including to mobilise the private sector.

In their opinion piece, published by News24, the IPG wrote that the working group meeting was a critical moment to reflect on the important priorities set out by South Africa, including the delivery of just, affordable, reliable and inclusive energy transitions.

“To limit global warming to 1.5°C it is essential that we work towards a global reduction in emissions from fossil fuels, and the energy sector will have to lead the way.”

The IPG indicated that as the world’s 15th largest emitter of greenhouse gases and as the chair of the G20, South Africa’s contribution was vital. If managed well, the energy transition will be a source of job creation and economic growth - citing the World Bank’s projection that South Africa could create 815 000 direct jobs in the transition.

In terms of funding, almost $12.8 billion (approximately R226.36-billion) has now been pledged by IPG members and other partners. To date over $2.6-billion (R46-billion) has been allocated, including over $583 million (R10.3-billion) of grant funding. Of the grants, 30 projects totalling $116-million (R21-billion) are ‘Just’ projects, aiming to create viable economic alternatives in coal-dependent regions.

Some of the projects include:

• The Netherlands has partnered with Eskom to create agricultural jobs near the Grootvlei power plant

• The UK is supporting citrus and nut farming and SMEs in Mpumalanga with the intention to create up to 3 200 local jobs

• The EU is partnering with municipalities to improve delivery of water, energy services, and public infrastructure

• Germany with co-funding from Switzerland is providing measures for improving transition into employment to over 1 200 young people and support to over 500 SMMEs and entrepreneurs.

The IPG reiterated that its support is offered across all the pillars of South Africa’s Just Energy Transition Implementation Plan, including electricity; and are sharing expertise and financing to help improve energy infrastructure and implement an energy market. “This is critical in achieving a sustainable and secure energy future for South Africa”.

For example, France and Germany have provided over EUR1.5-billion (R30-billion) in concessional loans to the government focused on managing the social impact of the just energy transition, and Germany and Denmark have provided technical assistance to the government and Eskom to enable progress towards the liberalisation of the energy market. Germany’s concessional financing of EUR150-million (R2.9billion) for the City of Cape Town is strengthening grid infrastructure, and the UK’s Development Finance Institutions are providing innovative guarantees totalling $117 million (R2.1-billion) to trading companies to unlock renewable energy capacity through energy trading.

“We know that the transition of a new energy future is a long and challenging journey that impacts the lives of all South Africans. All the countries of the IPG can be counted on as responsible, committed and reliable partners, and we are proud to support South Africa towards achieving a just and sustainable energy future that benefits all South Africans”

Energy Transition Must Focus On Jobs, Development: Dr Kgosientsho Ramokgopa

Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa delivered the opening remarks at the G20 Energy Transitions working group (ETWG) technical teams meeting in Cape Town.

He highlighted that a successful transition is one that does not displace workers but rather prioritises reskilling, protects livelihoods and anchors new industries that generate quality jobs.

“Workers must see themselves not as casualties of the transitions but as co-authors of a new energy future. This is not just a matter of policy: it is a matter of principle; one we owe to those whose hands have powered our economies and whose futures must remain central to our planning.”

The Minister said the transition must also be seen as a “development project” for developing economies which must also enable nations to industrialise, create jobs and expand the reach of human development.

“For the global South, the transition must mean…moving from vulnerability to resilience, from exclusion to empowerment and lastly, from energy poverty to energy sovereignty." In conclusion, he said that Africa has the youngest population, greatest solar potential and the fastest growing demand for energy services.

“We are not the last frontier of development. We are the next frontier of opportunity. We welcome partnerships that view African countries not merely as recipients of energy investments but as co-creators of the solutions needed for a global just transition.”

Source: Presidential Climate Commission | Just Energy Transition - Government of SA | State of The Nation 2025 | European Delegation to South Africa | SANews.gov.za | Eskom | News24