South Africa advances its Just Energy Transition investment plan
South Africa’s commitment to an equitable energy transition continues to gain momentum, with notable progress achieved across the six portfolios of the JET Implementation Plan 2023 – 2027 since the beginning of its implementation in January 2024.
Key achievements include an increase in international pledges from the initial $8.5bn (£7bn) pledged by the International Partners Group in September 2021 to $13.8bn (£11bn) by September 2024, involving an increasing number of international funders.
The expanding pool of pledged funding to South Africa’s Just Energy Transition Investment Plan (JET IP) reflects growing international confidence and commitment to supporting South Africa’s transition to a low-carbon economy and climate-resilient society.
The pledged funding includes a mix of grants, concessional loans, and commercial investments, with notable contributions from multilateral institutions and bilateral partners including the African Development Bank, Climate Investment Funds and the World Bank.
Joanne Yawitch Head of the JET Project Management Unit in the Presidency said: “The funding boost underscores global recognition of South Africa’s Just Energy Transition (JET) strategy as a model for balancing economic diversification, social equity, and climate change”.
Of the $13.8bn pledged, 7% is in the form of grants to support community development, technical assistance, capacity building, skills, and project preparation, particularly in coal-affected communities.
Green Hydrogen Portfolio
Key milestones are being reached on catalytic GH2 projects with the Industrial Development Corporation (IDC) securing €23m in grant funding from the German government through KfW.
This will be deployed to de-risk and expedite key catalytic GH2 projects.
Additionally, the IDC is finalising negotiations with the Dutch government and National Treasury for €50m of grant funds to be disbursed into the SAH2 Green Hydrogen Fund which is in the process of being established.
Yawitch added: “South Africa remains steadfast in its commitment to a just energy transition that is implemented at a pace and scale that is appropriate to national circumstances.
“We will continue to ensure that South Africa’s just energy transition is implemented in a way that is rooted in justice, protecting vulnerable workers and communities while enhancing energy security and access, reducing carbon emissions, and driving industrial growth, and economic diversification”.
