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South Africa’s Just Energy Transition hailed ahead of Paris Climate Deadlines

16 Sep 2025 | Market News

As the world edges closer to critical Paris Agreement deadlines, the United Nations has spotlighted South Africa’s Just Transition strategy as a leading example of climate mitigation.

The UN is pointing to South Africa as an example ahead of Paris Agreement/COP deadlines because:

  • It is a high emissions country with heavy coal dependency, so its actions have outsized relevance for global emissions trajectories.
  • It is combining mitigation with social protection, economic justice, and energy security. This dual approach matches many calls for what “realistic, fair climate action” looks like.
  • It is submitting stronger / enhanced Nationally Determined Contributions (NDCs) under the Paris framework. The UN is urging all countries to submit “most ambitious” plans; South Africa’s plan includes enhanced commitments.

South Africa, one of the world’s most coal-dependent economies, faces the daunting challenge of shifting its energy system to renewables while safeguarding jobs, communities, and energy security. The UN’s recognition underscores how the country’s approach, anchored in fairness, inclusivity, and international cooperation, could set a precedent for other developing nations navigating the same tensions between climate ambition and social justice.

A coal-heavy legacy

South Africa generates roughly 80% of its electricity from coal, making it one of the top 15 carbon emitters globally. Coal mining and power generation underpin local economies in provinces like Mpumalanga, where entire towns rely on the sector for livelihoods. The prospect of phasing out coal has long raised concerns about widespread job losses, economic decline, and worsening inequality.

Against this backdrop, the government has embraced the concept of a “just transition” - a framework that ensures workers and communities are not left behind in the shift to low-carbon energy. The Presidential Climate Commission has been central in shaping policy, recommending phased coal plant retirements, community reinvestment, and worker reskilling programmes.

International partnership and investment

South Africa’s most visible step has been the Just Energy Transition Partnership (JETP), announced at COP26 in 2021. Through this initiative, a group of wealthier nations, the UK, US, Germany, France, and the EU, among others, committed initial funding of US$8.5 billion to support South Africa’s energy shift. That figure has since grown to US$11.6 billion, according to a recent UN Climate Change release.

The financing package combines concessional loans, grants, and guarantees aimed at accelerating renewable energy deployment, modernising the grid, and cushioning vulnerable groups. The International Partners Group (IPG), which oversees the arrangement, has praised South Africa’s progress and pledged to increase support if reforms stay on track.

For the UN, this blend of domestic policy innovation and international backing embodies the kind of climate cooperation envisioned under the Paris Agreement. It shows that decarbonisation in developing economies can be paired with social protection - if funding and political will align.

Policy and legal foundations

Several recent policy milestones have reinforced the country’s credibility. South Africa passed its Climate Change Act, giving legal weight to emission reduction targets and mandating sectoral carbon budgets. The government also unveiled its Just Energy Transition Investment Plan (JET-IP), mapping out how funds will be deployed across renewables, grid infrastructure, electric vehicles, and green hydrogen.

At the same time, regulatory reforms are allowing more private investment in power generation, particularly solar and wind projects. This is seen as essential to overcoming the crippling load-shedding crisis that has plagued the economy and eroded public confidence in the state utility, Eskom.

Social equity at the centre

What distinguishes South Africa’s transition in the UN’s eyes is its emphasis on fairness. Beyond the technical and financial dimensions, the framework includes retraining for coal workers, regional economic diversification, and targeted support for women, youth, and small businesses.

The UN Development Programme (UNDP) has also supported projects that address energy poverty in rural and informal settlements, ensuring that renewable expansion benefits communities historically left off the grid. “Equity is the foundation of sustainability,” the UN has stressed, pointing to South Africa’s plans as a model that integrates climate action with poverty alleviation and social justice.

Challenges remain

Yet the transition is far from smooth. Labour unions remain wary, warning that poorly managed reforms could amount to “green structural adjustment” that shifts burdens onto workers. Concerns persist about whether new renewable jobs will match the wages, benefits, and stability of coal-sector employment. Infrastructure is another obstacle. South Africa’s transmission grid is ill-equipped to absorb the scale of renewable energy planned, requiring billions in upgrades. Delays in project approvals, corruption risks, and uneven municipal capacity further complicate rollout.

Financing terms also remain contentious. While the headline figures are significant, much of the funding is in the form of concessional loans, raising fears of debt burdens. Civil society groups argue that more grant financing is needed to ensure the transition is genuinely just.

Why it matters globally

Despite these hurdles, the UN’s praise is significant. With the next round of Nationally Determined Contributions (NDCs) due under the Paris Agreement, countries are under pressure to submit more ambitious climate targets. South Africa’s example demonstrates how a high emissions developing country can align mitigation with social protection, bolstered by international solidarity.

The UN hopes this model will inspire other coal-heavy economies, such as Indonesia, India, and Vietnam, which are pursuing similar JETPs - to scale up ambition and secure just outcomes for workers and communities.

For South Africa, the stakes are especially high. A successful transition could reduce its emissions trajectory, strengthen its fragile energy system, and attract billions in green investment. Failure could deepen inequality, prolong power shortages, and erode trust in climate cooperation.

Looking ahead

As COP30 in Brazil draws nearer, the UN is using South Africa’s experience to urge countries to adopt the “highest possible ambition” in their climate plans. Whether South Africa can deliver on its promises - retiring coal plants on schedule, deploying renewables at scale, and protecting vulnerable communities - will test both national resolve and international partnerships.

For now, South Africa stands as a case study in how climate action can be reframed not as a threat to development, but as an opportunity to build a fairer, more resilient future.

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