Energy and Electricity Minister, Dr Kgosientsho Ramokgopa, has called for urgent resource mobilisation to fund South Africa’s Just Energy Transition.
Speaking at Standard Bank’s 4th annual Climate Summit in Johannesburg, Ramokgopa stated that the country would need R1.5 trillion over the next five years to meet its decarbonisation commitments by 2050.
The transition aims to reduce South Africa's reliance on coal-fired power stations while ensuring minimal disruption to vulnerable communities.
“The financing fraternity is going to play a big part in our efforts to achieve the goals of the Just Energy Transition,” Ramokgopa said in an interview with SABC News.
He stressed that the responsibility must be shared across sectors, and private investment would be crucial in closing the financial gap.
Standard Bank has pledged to mobilise R250 billion in sustainable finance by the end of 2026.
This commitment is aimed at driving energy transition initiatives, not just in South Africa but across the continent.
"We’ve looked at not only project financing but how we can crowd in pension funds and institutional investors," said Rentia van Tonder, Standard Bank’s head of power, highlighting the scale of funding required.
Power utility, Eskom, has tailored its programmes to align with the Just Energy Transition targets. Eskom, which also supplies energy to several African countries, faces significant challenges in maintaining affordability.
Eskom’s chairman, Mteto Nyathi, pointed out: “We are embracing the competition and are working on reducing the cost of electricity, which is our next big challenge.”
The Presidential Climate Commission (PCC) raised concerns about the social and economic consequences of the transition.
Dr Crispin Olver, PCC executive director, stressed the need to protect workers and communities, ensuring that jobs lost in traditional energy sectors are replaced with new opportunities.
“Our concern is around the social and economic impact of this transition. How do we ensure that workers and communities aren’t the ones bearing all the costs and risks?,” Olver asked.
With adverse weather conditions intensifying, mitigating climate change has become critical for safeguarding the economy and livelihoods. As global trends push towards sustainability, South Africa’s goal remains clear: to reach zero carbon emissions by 2050.
The government continues to call for private sector alignment with national climate efforts, recognising the need for collective action to meet this ambitious target.
IOL