to be the climate justice blueprint, the deal that showed how rich countries could help developing economies end their reliance on coal and go green. Almost 18 months on, South Africa’s US$8.5-billion transition showpiece looks more like a cautionary tale.
Five partners — Germany, France, the UK, US and European Union — agreed to provide some of the money required for South Africa to close dilapidated and failing coal plants, bolster transmission capacity, add renewable energy, and foster the development of electric vehicle and hydrogen industries to create new jobs. The JETP model was appealing because it was clearly-defined and measurable while still being large-scale.
At least 110 000 people are employed in the mines and power plants, which puncture the flat, maize-growing vistas of Mpumalanga, east of Johannesburg. While the region boasts spectacular scenery and wildlife, it is also home to some of the most polluted places on Earth. Some municipalities rely on coal for more than 40% of economic activity.
As the finances of Eskom and the government have deteriorated, power plants and towns across South Africa’s eastern coal belt have been left to ruin, with half the generating capacity out at any one time. Eskom has had to ration electricity in recent years. Rotating power cuts have been imposed every day bar one this year, often for more than 10 hours at a time.
The $8.5-billion that international partners are offering is meant to serve as a catalyst for more investment. Spain, for example, said this month it was providing $2.3-billion towards energy transition and water needs. Meanwhile, worsening power cuts are increasing pressure on Ramaphosa a year before general elections in which the ANC may lose its majority for the first time.