Climate Change is one of the biggest global challenges of the 21st century. All nations have to move rapidly away from the fossil fuels to renewable energy sources such as solar or wind energy. South Africa is facing both, severe consequences of climate change and electricity shortages due to increasing problems of the energy infrastructure. However, South Africa is determined to turn this challenge into an opportunity.
At COP26 in November 2021, the governments of South Africa, with France, the EU, UK, US and Germany launched an ambitious, long-term Just Energy Transition Partnership (JETP) to support South Africa’s de-carbonization and the transitioning of its economy towards renewable energy sources. The partnership appreciates South Africa’s ambitious Nationally Determined Contribution to combatting global climate change.
The JETP Leaders Update lays out the governance structure and defines roles and responsibilities for the upcoming work on the investment plan ahead of the Climate Summit (COP27) in November. The report is an important milestone and reaffirms the partners’ long-term ambition to accelerate the just transition in South Africa.
JETP is a unique and ambitious partnership and the first of its kind, supporting South Africa’s pathway to a low carbon economy, a climate resilient society and helping to build a secure and sustainable electricity system. JETP involves deployment of an initial $8.5 billion over the next three to five years, focussing on the power sector, but also driving new economic opportunities such as green hydrogen and electric vehicles. The partners will seek to mobilise additional finance from the private sector to support the JETP Investment Plan ahead of COP27.
Germany‘s contribution to the initial 8.5 billion US Dollars of approximately 800 million US Dollars is based on the long-standing cooperation with the South African Government, Research Institutions, Provinces, Municipalities and the Private Sector to introduce a renewable energy mix and pave the way for a socially just energy transition. Managing the energy transition in a just and sustainable way will ensure that its benefits are maximised. A just and sustainable energy transition will drive economic development, social well-being and justice, positioning South Africa at the top of green technology development and manufacturing.