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Ramaphosa launches ‘Just Energy

Transition Investment Plan’ ahead

of COP27 climate talks

SOUTH AFRICA SOUTH Africa’s President Cyril Ramaphosa energy at scale and modernising the grid.
unveiled a 200-page investment plan ahead of About ZAR 60.4bn ($3.4bn) is targeted at
COP27 climate talks, urging partners to finance creating greener job opportunities for workers
his vision, an independent non-profit news site in the coal-rich Mpumalanga region. Green
Climate Home News reported. hydrogen sector development will receive 22% of
South Africa’s ZAR 1.5 trillion ($84bn) Just the investment. This would help to decarbonise
Energy Transition Investment Plan 2023-2027 to South African industry and generate clean fuels
kick start the decarbonisation of its coal-depend- for export.
ent economy was presented to the presidential The remaining 8.5% will be allocated electric
climate commission on Friday (November 4). vehicle sector, upgrading South Africa’s current
Ramaphosa called the plan for the transition combustion-engine vehicle manufacturing
from fossil fuels to renewable energy “a blue- capacity.
print” to address South Africa’s frequent black- The Just Energy Transition Investment Plan
outs, “unacceptable levels of poverty” and the document will be opened up to consultation and
climate crisis, writes the Climate Home. can be amended, Ramaphosa said.
“In essence, this investment plan is the first of Wealthy countries’ $8.5bn offer covers only
its kind in both scale and ambition. It provides a 9% of the vision. However, the president said he
vision of a future South Africa which is a lead- told partner governments, who are “rather open
ing player in a new low carbon global economy,” and willing” to listen, that the plan can really
Ramaphosa said. only be fully executed if there is grant funding,
However, the government estimates it lacks particularly to manage the social aspects of the
financing for ZAR 700bn ($39bn), or about 44% transition.
of its investment needs, and is working to mobi- “I have stressed that the component of the
lise more funding from other country partners, grant funding is much lower than what we need
the private sector and non-profit organisations to fund our transition. We are a country that is
(NGOs). already heavily burdened with debt. And I’ve
According to Ramaphosa, the $8.5bn pack- communicated [that] very clearly to them,” he
age wealthy nations have agreed for the clean told the commission.
energy transition will play an important catalytic The government is also in talks with private
role, but it is not sufficient to meet the scale of investors and multilateral development banks,
SA’s ambition. Only $330mn, or less than 4% of who are expected to get it over halfway to the
the aid package, will be delivered as grants. investment goal, Ramaphosa said. And South
The president said he told the US, UK, France Africa is “at advanced stages of engagement”
and Germany, contributing countries known as with other governments and philanthropies that
the Just Energy Transition Partnership (JETP), have expressed an interest in providing support.
that more money was needed than “what has Responding to the presentation, the Fair
been put on the table”, including “a significantly Finance Southern Africa welcomed the pres-
larger grant funding component,” says the cli- ident’s call for increased grant financing and
mate news site. said it looked forward to participating in the
“By releasing this plan, we are placing the ball consultation.
firmly in the court of the international commu- “This investment plan is real evidence that
nity, particularly developed economy countries a JETP process can drive the development of
that have through their own industrialisation financeable, Paris-aligned, country-owned
contributed greatly to the damage of our cli- low-carbon development plans,” Leo Roberts, of
mate,” Ramphosa told the commission. E3G’s coal transition team, told Climate Home.
The plan identifies three priority investment “Donor nations... must now ensure sufficient
sectors, writes Climate Home: grant and concessional finance is mobilised to
The largest share of ZAR 1trillion ($57bn), leverage the vast sums needed for South Africa
or around 70%, is earmarked for the electric- to deliver,” he added.™
ity sector. This includes decommissioning the
country’s ageing coal fleet, deploying renewable

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