It’s 2021, there is an energy crisis, and approximately 80% of South Africa’s energy is still being derived from coal. Why hasn’t this changed and why does it need to change? As one of the largest coal generators in the world, South Africa continues to produce coal power via state-owned Eskom’s old and problematic coal plants. In a country deeply rooted in socio-economic and political stress, it isn’t simple to make a “just transition” to renewables. However, South Africa is in desperate need of change because its carbon emissions are through the roof thanks to the coal-powered plants and in addition, health implications for those at the heart of the industry. Along with this, there’s no secret that Eskom brings darkness to the country all through the year and political leaders and their families continue to benefit from their dealings with Eskom. Eskom implements regular “load shedding” throughout the country due to their age-old facilities and the inability to keep up with a growing economy. Altogether, South Africa has a multitude of issues regarding the lack of movement away from coal (mainly political drivers and mismanagement); however, to keep within the emission targets set out under the Paris Agreement for the country, the phase-out of coal use is essential, especially since South Africa has great prospects for renewables.
COP26 AND THE COAL DEAL
During COP26, on 2nd November 2021, a deal was made for South Africa to receive $8.5 billion to move away from its intensive use of coal. Known as the Just Energy Transition Partnership, the finance will be provided in the form of grants and loans by the United Nations, EU, France, Germany, and Britain for a period of five years. The aim of the partnership is to move the country away from the use of coal, provide support to the coal-affected areas, and move towards clean energy sources. This is one of the most important and ambitious targets of South Africa’s Nationally Determined Contributions (NDCs) mainly because coal generation and use is the largest emissions contributor in South Africa. The aim of the deal is to transition towards a climate-resilient country by decreasing emissions from the coal-producing sector.
South African president, Cyril Ramaphosa, is in full support of the deal and has called it a “watershed moment” and in this turning point for South Africa, partner countries are looking forward to assisting in the just transition whilst at the same time supporting the need for development towards decarbonization of the country by assisting affected regions such as those close to coal mines and mine working communities. The support also includes looking into greener opportunities and the creation of green jobs (such as those in the renewables field and finance field) whilst South Africa goes through an economic change during the phase-out of coal.
All seems well in terms of working towards South Africa’s coal phase-out; however, prior to tabling the deal, it seemed as though consideration was taken to the fact that some developing countries face more inequalities that are not in line with COP26 and so a meeting was held between delegates in private, upon which South Africa was also in agreement with the new change around the wording for the coal deal. South Africa then agreed to support the “phasing down” of coal and instead of “phasing out” of coal. The need to “phase down instead of “phase out” the use of coal comes with the consideration of the countries tough socio-economic circumstances; therefore, a “phase down” may seem to be the more just and may produce a more successful move away from the coal industry.
LOOKING AHEAD
Now that the deal is done and dusted, South Africa has a lot of work to do in the phase-down effort. These efforts will need to take into account a large number of factors such as the affected livelihoods, decreasing coal funding, investment towards renewable energy, and the need to upskill workers. Another major effort will be based on political powers. South African Minister of Mineral Resources, Gwede Mantashe plays a significant role in this just transition; however, many South Africans rooting for change are afraid of the personal agendas behind the continuous exploitation of coal and financial support given to Eskom. How this may affect the transition will be unknown at this point as South Africa’s politics dominate the coal arena.
On the bright side, now that South Africa has partnered with wealthier nations to phase down on dirty coal, there are a few important aspects to keep in mind during the transition: people and the environment must be at the center of a just transition, meaning that the need to protect whole ecosystems and the people it sustains has never been more important and this aspect must be emphasized on a holistic and broader scale. Awareness around the need for transition and the need for new, clean energy needs to be scaled up; the greater community of South Africa requires a mind shift that includes emphasizing the benefits of renewable, the importance of it, and how South Africa has massive potential to make this work. Previous coal finance should also shift their deals to support a greener economy in the coming years; pressure from stakeholders and government should increase until green finance becomes the norm. The leadership of Eskom needs to quickly realize that the organization needs to transition towards renewables and better plant management or it will no longer remain the energy provider of South Africa. Finally, as a country, South Africa should acknowledge that as a developing country, it could become a pioneer in greening the economy.
Many opportunities lie ahead for South Africa in respect to the phase-down of coal and the move towards a just transition. As a resilient country, South Africa can move forward from its continuous struggles, such as load shedding and the politics behind Eskom’s mismanagement. The $8.5 billion pledged for the Just Energy Transition Partnership may not be sufficient to rescue South Africa from its coal crises in its entirety, but it is a great opportunity for a start in the right direction and a brighter, cleaner, more equitable future.
FURTHER READING AND REFERENCES:
Al Jazeera. (2021). The COP26 deal will not be enough to end SA’s coal addiction. https://www.aljazeera.com/opinions/2021/11/11/the-cop26-deal-will-not-be-enough-to-end-sas-coal-addiction Accessed on 29 November 2021.
BBC News. (2021). COP26: South Africa hails deal to end reliance on coal. https://www.bbc.com/news/world-africa-59135169 Accessed on 30 November 2021.
Daily Maverick. (2021). The real deal with renewable energy in South Africa — unpacking the suite of options. https://www.dailymaverick.co.za/article/2021-11-08-the-real-deal-with-renewable-energy-in-south-africa-unpacking-the-suite-of-options/ Accessed on 29 November 2021.
The Africa Report. (2021). COP26: South Africa to receive $8.5bn to stop using coal. https://www.theafricareport.com/143773/cop26-south-africa-to-receive-8-5bn-to-stop-using-coal/ Accessed on 30 November 2021.