Meet the Experts Behind Just Energy Transition
Frequently Asked Questions
What is the Just Energy Transition?
South Africa’s Just Energy Transition (JET) aims to achieve the transformation of South Africa’s emissions-intensive energy system into one that is low carbon and supports the country’s ambitious Nationally Determined Contribution (NDC) (carbon reduction target) tabled with the United Nations Framework Convention on Climate Change (UNFCCC) in 2021.
In the NDC, South Africa commits to achieve a target range of between 420-350 megatonnes carbon equivalent (MtCO2-eq) by 2030, with support from the international community, and in a manner that is just for communities and workers who are at risk in the energy transition.
The JET will see the economy transition from fossil fuels to cleaner energy technologies, accelerate the decarbonisation of the electricity sector, and develop new growth opportunities in green hydrogen and electric vehicles. These decarbonisation measures will contribute to mitigating climate change risks, including high risks associated with international trade measures that will soon penalise the import of South Africa’s current emissions-intensive products.
To decarbonise the economy within the 350–420 Mt CO2eq range by 2030, South Africa will need to invest approximately ZAR 1.5 trillion over five years from multiple sources including developed countries’ lenders and donors, private sector investors, Development Finance Institutions (DFIs), Multilateral Development Banks (MDBs), fiscal allocations, and contributions from the philanthropic sector.
How will the JET benefit South Africans, in particular vulnerable communicates?
The JET Investment Plan 2023–2027 (JET IP) is built on the Just Transition Framework adopted by Cabinet in 2022, which affirms that South Africa’s energy transition must be embedded in redistributive, restorative, and procedural justice.
The JET IP confirms South Africa’s resolve to implement the JET in a way that protects vulnerable workers and communities, builds energy security, expands energy access, promotes industrial development, drives innovation, develops sustainable livelihoods, enables economic diversification, and spurs inclusive economic growth.
Importantly, the just transition to a low carbon economy will be implemented at a scale and pace that South Africa can afford and in a manner that ensures energy security.
The just transition will benefit all South Africans by driving economic growth, creating jobs and increasing energy security:
- Renewable energy production will make electricity cheaper and more dependable, and will allow South African industries to remain globally competitive.
- Investments in electric vehicles and green hydrogen will equip South Africa to benefit from global clean energy trends.
- Opportunities abound to expand the country’s mining industry in minerals that are crucial for the energy transition, including platinum, vanadium, cobalt, copper, manganese, and lithium.
- South Africa’s abundant solar and wind resources and local technology and expertise position the country for green hydrogen production and export.
What international support is South Africa getting for the JET?
The NDC emissions targets were committed by South Africa in 2021 on the basis that international financial support would be needed to reach the bottom end of the emissions reduction target range. At COP26 in 2021, the International Partners Group (IPG) was formed, made up of Germany, France, the United States, the United Kingdom, and European Union, and together pledging US$ 8,5 billion in a Political Declaration to support South Africa’s just energy transition through a combination of grants, concessional loans, and commercial debt and equity. In 2023, the Netherlands and Denmark joined the IPG. Together with additional JET pledges received from Spain, Switzerland and Canada, international pledges to the South African JET IP have increased by mid-2024 to US$ 13,8 billion. Of this total, US$ 821 million is in grant funding.
How is South Africa’s Just Energy Transition being implemented?
South Africa’s JET implementation is driven in six defined Portfolios outlined in the JET Implementation Plan, which was approved by Cabinet in November 2023. The JET portfolios are:
- Electricity infrastructure
- Mpumalanga Just Transition (JT)
- New Energy Vehicles (NEVs)
- Green Hydrogen (GH2)
- Skills
- Municipalities
Three additional Portfolios will be added in due course:
- South African Renewable Energy Masterplan (SAREM)
- Energy efficiency
- Road-to-rail
Each of the JET Portfolio is chaired by a lead institution and has:
- A multi-stakeholder JET governing structure to lead and plan,
- A dedicated JET Secretariat to manage, mobilise finance, and monitor,
- Workstreams led by relevant institutions, supporting the development of multiple JET programmes and projects, and
- Each JET project has it own management and governance arrangements.
What is the JET Project Management Unit and how is it different to the Presidential Climate Commission (PCC)?
The Just Energy Transition Project Management Unit (JET PMU) was established as a unit in the Project Management Office (PMO) in the Private Office of the President in January 2023. Its mandate is to develop and drive an implementation roadmap for the Just Energy Transition Investment Plan (JET IP). This includes convening role-players and building partnerships for JET IP delivery. The JET PMU is mandated to find innovative solutions to JET implementation problems; mobilise and guide sources of finance to address JET IP needs; and ensure transparent monitoring and evaluation of JET IP delivery and results.
Based on feedback from stakeholder engagements on the JET IP in 2023, the JET PMU produced the JET Implementation Plan 2023 – 2027 that was approved by Cabinet in November 2023.
From 2024, the JET PMU in the Presidency is driving JET delivery with a number of lead institutions of government, in collaboration with the private sector, trade unions, and civil society organisations. It manages the JET Funding Platform to match JET projects to sources of JET grant funding; mobilises various JET financing instruments; manages a transparent JET Investments Register; and provides regular monitoring and evalution on JET progress.
The PCC was established under the Chairmanship of the President in 2020 as a multi-stakeholder body to oversee and facilitate a just and equitable transition towards a low-emissions and climate-resilient economy. PCC Commissioners are appointed by the President from all sectors of society to drive stakeholder engagement and society-wide action on all aspects of climate change mitigation and adaptation.
How is the JET PMU Governed?
- The JET PMU is accountable to the Project Management Office in the Private Office of the President. Through the Office of the President, the JET PMU provides regular progress reports to the JET Government Steering Committee and the JET Inter-Miniserial Committee (IMC).
- The JET IMC is appointed by the President and chaired by the Minister of Electricity & Energy to provide inter-sectoral political leadership and advise Cabinet on the JET.
- The JET Government Steering Committee of multiple departments and DFIs, provides operational leadership, guidance, and co-ordination for implementation of the JET IP, and makes recommendations to the JET IMC.
