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ABSTRACT
The essay provides an overview of the South African Just Energy Transition Partnership (JETP) and the technical and political processes involved to secure the first country platform deal of its kind in the world. The JETP was premised on delivering gigatons of carbon offsets by phasing out coal for a sizeable and attractive climate finance deal. The South African JETP model is being replicated elsewhere in the world and is transforming the landscape of how nationally determined contributions can be used as tools for energy transitions and economic transformation. The essay seeks to demonstrate where international partnerships can be useful in this living experiment in transformative transition in a developing country, and suggests where they are not. The essay provides insights into how the South African JETP process built local ownership and catalysed innovative institutional mechanisms to deliver a substantive climate ambition under the rubric of a just energy transition.
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In accordance with Taylor & Francis policy and my ethical obligation as author, I am reporting that I am employed by a company that may be affected by the research reported in the enclosed paper. I have disclosed those interests fully to Taylor & Francis, and I have in place an approved plan for managing any potential conflicts arising from this involvement.
Notes
1 See Political Declaration from the Governments of the Republic of South Africa, the United Kingdom of Great Britain and Northern Ireland, the United States of America, the Republic of France and the Federal Republic of Germany, and the European Union.
2 See press statement South Africa establishes a historic international partnership to support a just transition The Presidency.
3 EMDES outside of China need about $800 billion per year and $2 trillion per year by 2030 way beyond the paltry $100 billion commitment made at the Copenhagen COP.
4 A Bhattacharya, H Kharas, and JW McArthur, (July 2022) Why Developing Countries Voices Will Shape the Global Climate Agenda, Center for Sustainable Development at Brookings, Policy Brief. The brief provides some refreshing insights on the implications of country platform models for energy transitions in EMDEs.
5 T Bell and G Farrell, ‘The Minerals-Energy Complex and South African industrialisation,’ Development Southern Africa 14, no. 4. (1997).
6 S Hadley et al., ‘Country platforms for climate action: something borrowed, something new?’ (2022).
7 S Guzman et al., ‘The State of Climate Finance in Africa: Climate Finance Needs of African Countries, Climate Policy Initiative’, June 2022.
8 NBI, ‘Decarbonising South Africa’s Power System’, August, 2021.
9 It's not the end of load shedding, as Eskom deals with ‘curve balls’ at Medupi, Koeberg | Fin24 (news24.com).
10 See GroundWork Trust & Vukani Environmental Justice Alliance Movement in Action v Minister of Environmental Affairs & Others (Highveld Priority Area #DeadlyAir judgment) – Centre for Environmental Rights (cer.org.za).
11 National Energy Crisis Committee releases six-month progress update on implementation of the energy action plan.
12 Minister of Mineral Resources and Energy Gwede Mantashe amended the electricity regulations to allow municipalities to develop or procure their own power (October 2020).
13 Olakunle Alao and Wikus Kruger, ‘Private Power Investments in Sub-Saharan Africa: 2021, Power Futures Lab, Graduate School of Business, University of Cape Town’, June 2022).
14 See Understanding high Eskom failure rate – sub-standard co … (dailymaverick.co.za).
16 A point raised in a recent Op Ed by Neva Makgetla – see What causes the tailspin of loadshedding? 4 July 2022, www.businessday.co.za.
17 Coal transitions in South Africa Understanding the implications of a 2oC-compatible coal phase-out plan for South Africa 2018 Authors Jesse Burton, Tara Caetano, BryceMcCall, Energy Research Center, UCT also at https://www.iddri.org/sites/default/files/PDF/Publications/Catalogue%20Iddri/Rapport/20180609_ReportCoal_SouthAfrica.pdf.
19 See also M Müller and A Paasch, ‘When only the Coal Counts – German Co-Responsibility for Human Rights in the South African coal sector, Action Aid South Africa, also at ActionAid International.’
20 See debt relief solution for Eskom being proposed by South African Treasury – https://www.news24.com/fin24/economy/eskom-debt-takeover-godongwana-says-gas-nuclear-will-be-part-of-conditions-20221101
21 Grové Steyn et al., ‘The Just Transition Transaction: A Developing Country Coal Power Retirement Mechanism’, September 2021. Meridien Economics. The paper sets out very clearly the Eskom debt situation and the debt spiral situation Eskom faces going into the future.
22 See Eskom electricity prices have skyrocketed – and it’s going to get worse (mybroadband.co.za).
23 Solar panel tax incentive for individuals, Budget Speech 2023.
24 Eskom had already had situations like this at the Duvha power plant. Inexperience staff caused a major accident at the plant. See at Operator error caused Duvha failure (iol.co.za).
25 Eskom was looted of R14.7 billion, says Zondo report (iol.co.za).
26 K Cowan, Sabotage:Eskom Under Siege (South Africa: Penguin Random House, 2022).
27 S Skiti and A Khoza, ‘Eskom: It’s Even Worse Than You Think,’ Sunday Times, July 3, 2022. www.sundaytimes.co.za.
28 NBI, Decarbonising South Africa’s Power System, August, 2021.
29 See Anton Eberhard, ‘Power market and regulatory reforms can – and must – improve supply (businesslive.co.za).’
30 Celeste Renaud, Emily Tyler, and Lonwabo Mgoduso, ‘The Just Transition Transaction: Motivating Climate Finance Support For Accelerated Coal Phase Down,’ May 2021. Meridien Economics Briefing Note.
31 Just Energy Transition (JET) – Eskom; See also PowerPoint Presentation (eskom.co.za) – a fact sheet compiled by the Eskom JET unit to explain the importance of the Just Transition to its key stakeholders.
32 See South Africa to unveil multibillion-dollar climate inve … (dailymaverick.co.za).
33 See Eskom: Update on the unbundling process | PMG.
34 The DPE is the primary reporting department to which Eskom reports into, but the Minister of Energy regulates the allocation of new power guided by the Integrated Resource Plan (IRP).
35 See Increase to 100MW embedded generation threshold will gi … (dailymaverick.co.za).
36 Presidential Climate Commission.
37 The PCC has a secretariat and 20 Commissioners including key Ministers such as the Ministers of Energy, Environment and Public Enterprises. The PCC is a multi-stakeholder body whose mandate is to advise the President and his cabinet on South Africa’s just transition. The PCC has two main roles: aligning a political settlement around the nature of what the just transition means in the South African context and undertaking the necessary technical studies to find the most cost-effective and just pathway to ambitious decarbonisation for the electricity and other sectors.
38 Jobs Summit 2018 | South African Government (www.gov.za).
39 See NPC (2019) Social Partner Dialogue on the Just Transition, also at NPC: Pathways for a Just Transition – Draft (nationalplanningcommission.org.za).
40 National Development Plan 2030 | South African Government (www.gov.za).
41 The PCC is also part of the International Climate Commission forum.
42 See South Africa updated first NDC September 2021.pdf (dffe.gov.za).
44 See Daniel Mminele appointed Head of the Presidential Climate Finance Task Team | The Presidency.
45 The CIF ACT which was seeded with $2 billion of funds had indicated it would allocate $500 million to the South African JETP programme. See South Africa $8.5bn finance package offers a model for ending reliance on coal (climatechangenews.com).
46 All the details of how the ACT will operate are contained at https://www.climateinvestmentfunds.org/sites/cif_enc/files/meeting-documents/joint_ctf-scf_tfc.23_6_cif_accelerating_coal_transition_investment_program_proposal_1.pdf#:~:text = Accelerating%20Coal%20Transition%20%28ACT%29%20Investment%20Program%20would%20be,is%20a%20dominant%20factor%20in%20the%20energy%20mix.
47 Six-month Progress Report on the JETP (June 2022).
48 COP26 chief wants to see SA's investment plans for $8.5bn climate finance deal | Fin24 (news24.com).
49 See Six-Month Update on Progress in Advancing the Just Energy Transition Partnership (JETP) – UN Climate Change Conference (COP26) at the SEC – Glasgow 2021 (ukcop26.org).
50 Based on the meetings I attended.
51 Blended Finance Task Force and CST (April 2022) Making Climate Capital Work: Unlocking the $8.5 BN for South Africa’s Just Energy Transition, Consultation paper.
52 Presidential climate commission.
53 12-Month Update on Progress in Advancing the Just Energy Transition Partnership (JETP) – UN Climate Change Conference (COP26) at the SEC – Glasgow 2021 (ukcop26.org).
54 DBSA, IDC and NEF team up to mobilise finance for just transition to low-carbon economy (miningweekly.com).
55 See SDG Indonesia One (ptsmi.co.id).
56 There was a leaked summary of the IP in early October that received coverage – see Who is contributing what to South Africa's clean energy shift? (climatechangenews.com).
57 NN Taleb, Antifragile: Things that Gain from Disorder (Great Britain: Penguin Books, 2012).
Additional information
Notes on contributors
Saliem Fakir
Saliem Fakir is the Executive Director of the African Climate Foundation. Prior to establishing the African Climate Foundation, he has served for 11 years as the Head of the Policy & Futures Unit of the World Wildlife Fund South Africa. He has also served as an Associate Director for the Centre for Renewable and Sustainable Energy at Stellenbosch University, where he was a Senior Lecturer in the Department of Public Administration and Planning.