The landmark $8.5 billion deal attracted significant attention from global stakeholders in 2021, serving as the first initiative of its kind and a model for other developing countries looking to transition away from coal. A key component of South Africa’s JETP is ensuring a “just” transition and to preserve jobs and livelihoods. As a result, the energy transition deal is in part used to fund alternative employment in coal mining areas, accelerate deployment of renewable energy and stimulate green economy jobs.
That said, an estimated $11 billion in climate finance is needed for the country to fully transition to renewables and keep state-owned public utility Eskom financially solvent. South Africa President H.E. Cyril Ramaphosa has affirmed the need for more climate funding.