Overview
The Just Energy Transition Partnership (JETP) with South Africa is an initiative aimed at supporting the country's transition from coal-based energy to cleaner and more sustainable energy sources. Launched at the COP26 climate summit in Glasgow in 2021, this partnership represents a significant international effort to address climate change while ensuring a fair and inclusive transition for workers and communities affected by the shift away from coal.
This flagship project will mobilise an initial commitment from different partners of $9.3 billion through various mechanisms including grants, concessional loans and investments and risk sharing instruments, including to mobilise the private sector. The primary objectives of the JETP are to:
- Decarbonize South Africa's Power Sector Reduce greenhouse gas emissions by phasing out coal-fired power plants and increasing the use of renewable energy sources
- Create New Jobs and Industries Develop new economic opportunities in the renewable energy sector, ensuring that workers displaced by coal plant closures have access to new employment opportunities
- Ensure a Fair and Inclusive Transition Support communities affected by the energy transition, providing social and economic support to ensure that the transition does not disproportionately impact vulnerable populations
Milestones
- Signature is expected in the coming months First deliverables of the MAVAL mapping of value chains in South Africa (presentation of the mapping of Critical Raw Materials value chains)
- Launch of the infrastructure IIPSA (Infrastructure Investment Programme for South Africa) grants
- Signature and launch of the grants (Annual Action Plan 2023) to support SMEs, expand TVET opportunities and reinforce state capacity
- Signature of the loan framework agreement between EIB and South Africa; the EIB Board is expected to approve the loan in mid-November.
