South Africa submitted an ambitious Nationally Determined Contribution (NDC) ahead of COP 26. At COP26, the South African government also forged the Just Energy Transition Partnership (JETP) jointly with the governments of the United Kingdom, United States, France, Germany and Germany. the European Union.
Under the JETP, partner governments have pledged an initial $8.5 billion as a contribution towards financing South Africa’s long-term just transition process to reduce the carbon intensity of the southern electricity system. Africa, while developing new sectors such as green hydrogen and electric vehicles. The aim is to ensure a just transition for workers and communities who have always relied on South Africa’s charcoal value chains for their livelihoods. The scale of the challenge means that partnerships, including with the private sector and development finance institutions, will be essential to achieve the desired results. As part of its commitment to the development of the energy sector in Africa in line with its New Deal on Energy for Africa (NDEA) strategy, the African Development Bank plays a leading role in supporting African countries in their just energy transition with policy advice, technical assistance and financing.
In this context, the Minister of Finance of the Republic of South Africa, Hon. Enoch Godongwana, has formally requested the African Development Bank to support South Africa with technical assistance on its just energy transition process.
The African Development Bank responded positively to South Africa’s request and agreed to provide the requested support through the COP26 Energy Transition Council’s Rapid Response Facility, funded by the Energy Transition Fund. Sustainable Energy for Africa (SEFA) of the Bank. Technical assistance will aim to build the capacity of relevant institutions in South Africa – primarily the Asset and Liability Management (ALM) Division of the National Treasury and the Presidential Climate Finance Team (PCFTT) – to engage and negotiate with external and internal partners. partners in the South African Just Energy Transition process. This technical assistance is independent, separate and in no way linked to any additional financial support that the African Development Bank may provide to South Africa’s just transition in the future.
The scope of technical assistance has been agreed between the ALM Division and PCFTT, allowing them to draw on financial, technical and other expertise to enable them to fulfill their respective mandates and responsibilities to develop recommendations for the financial package proposed within the framework of the JETP.
The detailed modalities for the implementation of the technical assistance are being finalized with a view to launching the assistance in the coming weeks.
The government and the Bank have also reached an agreement in principle that this rapid assistance could be followed by a broader SEFA technical assistance program, addressing the medium and long-term needs of South African institutions under the just energy transition process, once the needs become more apparent.
This technical cooperation is based on a long-term partnership between the African Development Bank and the South African government, which is based on the recognition of the importance given to energy security and the just transition in the climate response of the South African. Africa, and on the need to meet economic, environmental and social development goals.