President Cyril Ramaphosa says South Africa aims to reach net zero carbon emissions by 2050.
Speaking at the Climate Resilience Symposium underway at the Council for Scientific and Industrial Research (CSIR) International Convention Centre in Pretoria, President Ramaphosa said the revised Nationally Determined Contribution balances the country's developmental needs and economic realities.
"It takes into account the feasibility of undertaking a climate response through a set of just transition pathways. Importantly, it notes carbon tax as a vital component of our mitigation strategy to lower greenhouse gas emissions," President Ramaphosa said.
By internalising the cost of carbon emissions, the President said the carbon tax incentivises companies to reduce their carbon footprint and invest in cleaner technologies, and also generates revenue for climate initiatives.
The President said these funds can be reinvested in renewable energy projects, energy efficiency programmes and social support mechanisms.
Government has launched a number of other initiatives to meet the country's emissions targets, and these include the Renewable Energy Independent Power Producer Procurement Programme, which has been successful, attracting over R209 billion in investment and adding much-needed capacity to the electricity grid.
President Ramaphosa said the Integrated Resource Plan, which outlines the country's energy mix, is in the process of being updated.
The plan sets out a viable energy mix over the medium- and long-term to achieve the decarbonisation objectives.
Just transition
The President said the Just Energy Transition Investment Plan sets out a quantified investment plan of some $98 billion, noting this will drive huge investments in the electricity grid, green hydrogen, electric vehicles, economic diversification, and skills development, amongst others.
"We continue to explore opportunities to meet our emissions reduction targets in minerals extraction, in green hydrogen production, in new power infrastructure, in electric vehicle manufacturing, and economic infrastructure upgrades.
"It is crucial that the transition to a low-carbon economy is just and inclusive and that no worker or community is left behind. The growth of clean tech, renewable energy, battery storage, green hydrogen and minerals for the future low-carbon economy must result in opportunities for affected sectors, employees, and communities," the President said.
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The President also noted that government is investing in retraining programmes, creating new job opportunities in renewable energy, and supporting small enterprises in affected areas.
The President further underscored a need for substantial investments to build sustainable infrastructure, develop green technologies and support social programmes.
Moreover, he noted the substantial gap between available disaster funds and the cost of disaster response.
"Even as we have taken proactive measures like setting up a Climate Change Response Fund, we need to think seriously about the urgent financial and policy measures needed to address these shocks, and how to strengthen the National Treasury's disaster financing response," the President said.
He said the Department of Forestry, Fisheries and the Environment is already working with the Presidential Climate Commission on recommendations for the Climate Change Response Fund, and an Adaptation and Resilience Investment Plan to accompany it.
The President called on international partners to fulfil their commitments to finance both, noting that mitigation and adaptation financing remains a challenge.
While acknowledging the positive steps taken with the establishment of the Green Climate Fund, including the Loss and Damage Fund, and other global mechanisms, President Ramaphosa emphasised a need for more innovative financing solutions that mobilise private capital and incentivise sustainable practices.
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"The National Treasury's Climate Finance Strategy is pivotal in this regard, outlining how we can leverage public and private finance to achieve our climate goals.
"We must not underestimate the importance of our own domestic capital and financial markets to innovatively mobilise and deploy capital towards our just transition," President Ramaphosa said.
The President announced that the Just Energy Transition Funding Platform will be launched in the next few months.
The funding platform will be an important precursor to a broader Just Transition Financing Mechanism, proposals for which are being developed by the Presidential Climate Commission.
"We call on South African business to invest in the projects needed for a successful just transition in this country. We need to use blended finance to unlock private sector flows," President Ramaphosa said.
