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A closer look at just transition policies
South Africa

South Africa's Just Energy Transition Investment Plan

Region
Africa
Country
South Africa
Originator/Owner
Government Ministries And Agencies National Level
Coordinating/Lead actor
Presidency. Overseen by Cabinet. Implemented by Just Energy Transition Project Management Unit (JET PMU), reporting to Presidency.
Policy type
Strategies Plans Frameworks Roadmaps Blueprints
Policy areas
Active labour market policies, Enterprise policies, Industrial and sectoral policies, Macroeconomic and growth policies, Skills development, Social dialogue and tripartism, Social protection
Environmental focus
Climate change, Pollution
Target groups
Employers, Micro, small and medium-sized enterprises (MSMEs), Other, Vulnerable communities in coal regions, Workers, Youth
Sectoral focus
Agriculture, Chemical industry, Infrastructure, construction and related sectors, Energy, Extractives, Financial services, Forestry and Land use, Manufacturing, Maritime and transport, Public services, utilities and health, Tourism
Crosscutting themes
Circular economy, Critical Energy Transition Minerals, Employment/job creation, Finance (public/private), Green economy
Date of Adoption
04 Nov 2022
Timeframe
02 Nov 2021 - November 2023
02 Nov 2021
Just Energy Transition Partnership announced
Feb 2022
Presidential Climate Finance Task Team established
04 Nov 2022
JET Investment Plan published
Jan 2023
JET Project Management Unit created
Nov 2023
JET Implementation Plan approved by Cabinet
South Africas Just-Energy Transition Investment Plan JET-IP-2023-2027
English, PDF

South Africa’s Just Energy Transition Investment Plan (JET IP) sets out the necessary investments and scale of financing required to support a decarbonisation pathway aligned with the commitments in the country’s Nationally Determined Contribution (NDC). The five-year plan sets out funding requirements of USD 98.7 billion (ZAR 1.48 trillion), linking climate ambition with jobs, energy access, industrial and economic diversification, and social protection.

Rather than simply phasing out fossil fuels, the JET IP actively seeks to build replacement industries and embed protections and support to ensure the transition's costs are not borne by the most vulnerable. It embeds the just transition approach and principles developed in South Africa's Just Transition Framework.

The JET IP also represents an important step under the Just Energy Transition Partnership (JETP) launched at COP26 in 2021, between South Africa and the UK, EU, US, France, and Germany. Subsequently, the Netherlands, Denmark, Switzerland, Canada, and Spain pledged additional finance, while the US withdrew from the partnership in February 2025. Total pledges stood at USD 13.9 (ZAR 246 bn) as of the end of 2025.

The JET IP provides a nationally led investment framework agreed on by the international partners, as required by the 2021 declaration in order to mobilise these financial commitments. All parties acknowledge that further public and private resources will be needed to meet South Africa's goals.


Key insights
Sectoral priorities, cross-cutting actions, and finance for a pathway to a low-carbon and climate-resilient energy system

The three priority sectors are electricity – with a special focus on a just transition in Mpumalanga Province, which is highly vulnerable to coal phase-out – new energy vehicles (NEVs), and green hydrogen. They sit alongside two cross-cutting areas: skills development and supporting municipalities.

These priorities (including Mpumalanga) were formulated as six ‘portfolios’ under the JET Implementation Plan (see below).

  • The electricity sector accounts for almost half of the country’s greenhouse gas emissions. The JET IP envisages expanding renewable energy and storage capacity, strengthening transmission grid infrastructure, modernizing distribution, and decommissioning coal plants.
  • Investments in Mpumalanga are needed to repurpose coal plants and restore and repurpose coal mining land, develop local infrastructure, and promote economic diversification and livelihoods outside of the coal value chain, including in the agriculture and tourism sectors. People-focused measures include investing in training and targeted projects for youth and ensuring social protection is in place for coal workers.
  • The NEV sector supports the shift away from fossil fuel-based transport, helps maintain competitiveness and employment within South Africa’s manufacturing sector, and improves health and equity in cities. Planned investments are focused in industrial development, innovation, early adoption, public transport, and deployment support.
  • Green hydrogen is seen as a strategic growth area. By enabling low-carbon solutions in hard-to-abate sectors and benefiting from global demand for clean energy carriers and technologies, it supports the emergence of new value chains and job creation and, in the long-run, domestic industrial decarbonization. Green ammonia, green steel, aviation fuel, and e-methanol are all envisaged in the plan.
  • Skills development is a critical enabler for a just energy transition and for economic growth. Intended measures include a national-level strategic skills hub or platform and pilot skills development zones, both of which should support existing education and training systems.
  • Municipal capacity investments entail infrastructure upgrades for electricity distribution, operational improvements and other steps for modernization. A coordinated approach is needed to address the challenges and opportunities facing local governments, for reliable and equitable energy service provision through the transition.
Expected Outcomes
Advancing job creation, energy security and green growth through a just energy transition
Implementation
Coordinated governance and financing mechanisms for a multi-sector just energy transition

Implementation of the JET IP is supported by a set of institutional arrangements and coordination mechanisms designed to mobilise finance, ensure political leadership and guide execution across government and stakeholders.

Several key entities have been established during the process of JET IP formulation and implementation:

  • A Presidential Climate Finance Task Team (PCFTT) was established in February 2022 to mobilise financing for the just energy transition, develop the JET IP, and make recommendations on the financing package.
  • JET Inter-Ministerial Committee (IMC), chaired by the Minister of Electricity and Energy, which provides overall political leadership, coordination, and advice to the Cabinet to ensure coherent decision-making.
  • JET Government Steering Committee, which provides leadership to execute the JET IP and providing guidance and advice to the IMC to support cross-sectoral efforts.
  • JET Project Management Unit (JET PMU): the central hub for overseeing implementation, solving bottlenecks, convening stakeholders, and carrying out monitoring, evaluation and learning.

The JET Implementation Plan that was approved in November 2023 acts as the operational roadmap for executing the JET IP and to realise the investments it sets out.

The JET PMU is responsible for mobilising and coordinating finance to close the financing gap in the JET IP while accelerating the deployment of already-committed resources.

Two important measures developed by the JET PMU include the Investment Register (formerly Grants Register), which tracks the financial resources allocated to support the JET IP; and the Funding Platform, which offers a matchmaking service to connect funders with potential beneficiaries via open calls for project submissions.

An engagement process to shape the JET IP and its Implementation Plan driven by working groups and stakeholder discussions
Jul 2022 - Oct 2022
Energy Transition Dialogues | Actors: Presidential Climate Commission and various social partners | Online public sessions on key topics like finance, reliability, jobs and skills, coal closure.
Aug 2022 - Sep 2022
Presidential Climate Finance Task Team stakeholder consultation sessions | Actors: PCFTT, youth, business, civil society, labour and local government | Constituency-focused sessions facilitated by the Presidential Climate Commission.
Feb 2023 - Apr 2023
Consultations on Implementation Plan and National Colloquium on Electricity Planning and the Just Transition | Actors: PCC, business, labour, civil society, subnational government, youth and the faith community | Various dialogue events and written submissions.
Other stakeholders
Multi-stakeholder inclusivity as a foundation of just energy transition policies

Equity and inclusivity are key principles for South Africa’s JET. The JET IP explicitly anchors local communities in coal-dominated regions, trade unions, businesses, local governments and youth as active participants in shaping plans and delivering transition policies. Each portfolio for delivery has a multi-stakeholder JET governing structure to lead and plan, supported by a dedicated JET Secretariat.

The plan is cognizant of systemic gender gaps and racial inequalities, for instance in the context of providing tailored education, training, and decent work pathways. This architecture is intended to grant affected stakeholders equal access to new green employment opportunities and leadership roles throughout the decarbonization process.