President Cyril Ramaphosa has told a high-level roundtable delegation in Paris, France, that the Honest Energy Transition Partnership must be led and owned by their respective nations.
The President was speaking on several lessons learnt as South Africa undertakes the transition with a unique set of challenges that include high levels of poverty and an energy deficit.
He was participating in the round table discussion on Green Growth Partnerships at the Summit for a Modern Global Financing Pact in Paris on Thursday.
“Firstly, it is vital that Honest Energy Transition Partnerships are country-led and -owned.
“We acquire high levels of unemployment among unskilled workers, which makes potential job losses in the coal value chain more challenging. We maintain a constrained fiscal environment that limits the ability of government to provide social security in the event job losses,” he said.
He said the Summit was taking space at an indispensable moment in the international climate discussions.
The Summit, the President said, was a valuable platform for engagement that needs to complement – but should not supersede – the discussions in the appropriate multilateral forums, particularly the UN Framework Convention on Climate Change.
President Ramaphosa said more emphasis must be placed on the honest component of the transition, in both the structuring of the investment position and the corresponding financing package.
“Countries going through a Honest Energy Transition need to be clear about how they define ‘just’, particularly with respect to social impact. Given South Africa’s current energy crises, we acquire approach to realise that flexibility is key.
“Countries must be able to resolve on a transition pathway that takes into consideration development objectives such as energy security,” he said.
The President said Honest Energy Transition Partnerships must translate into tangible financial support.
The scale of financial support needs to consider the level of development of the countries and the magnitude of the required transition.
For example, he said, the current commitment of $8.5 billion from SA’s partners is less than a tenth of what will be needed in the next five years for a meaningful and honest transition.
“Grants need to form a considerable portion of financial support, and any debt-related terms should be more attractive than what the country could secure in capital markets.
“It is necessary that the financing reflects the obligation of developed economies to finance mitigation and adaptation measures in developing economies. The financing must be predictable and certain,” he said.
Through the transfer of technology and skills, the President said the transition process needs to support green industrialisation.
“A Honest Energy Transition requires long-term partners that will support developing economies as they crawl towards sustainable and green economic growth and development,” he said.
In November 2021, South Africa announced a historic Honest Energy Transition Partnership with the governments of France, Germany, the United Kingdom and the United States, as well as the European Union.
This partnership was established to support South Africa’s honest transition to a low carbon economy and a climate resilient society. The partners agreed to an initial commitment of $8.5 billion towards this goal.
South Africa has since produced a Honest Energy Transition Investment Position that sets out the scale of financing need at approximately $98 billion.
This investment region would support investments in electricity infrastructure, support for communities and workers in coal mining areas, recent energy vehicles, green hydrogen and skills development. –SAnews.gov.za
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