President Cyril Ramaphosa has announced that South Africa aims to achieve net zero carbon emissions by 2050. Speaking at the Climate Resilience Symposium at the CSIR International Convention Centre in Pretoria, he emphasized that the country’s revised Nationally Determined Contribution (NDC) balances developmental needs and economic realities.
“It considers the feasibility of a climate response through just transition pathways and highlights carbon tax as a crucial part of our strategy to reduce greenhouse gas emissions,” a media report quoted him saying. The carbon tax is designed to internalize the cost of emissions, incentivizing companies to lower their carbon footprints and invest in cleaner technologies while generating revenue for climate initiatives.
These funds will be reinvested in renewable energy projects, energy efficiency programs, and social support mechanisms. The government has already launched several initiatives to meet emissions targets, such as the Renewable Energy Independent Power Producer Procurement Programme, which has attracted over R209 billion in investment and added significant capacity to the electricity grid.
President Ramaphosa mentioned that the Integrated Resource Plan, outlining the country’s energy mix, is currently being updated to align with decarbonization objectives. Additionally, the Just Energy Transition Investment Plan details a $98 billion investment strategy aimed at enhancing the electricity grid, green hydrogen, electric vehicles, economic diversification, and skills development.
“We are continuously exploring opportunities to meet our emissions reduction targets in sectors such as minerals extraction, green hydrogen production, new power infrastructure, electric vehicle manufacturing, and economic infrastructure upgrades,” he said. Ramaphosa stressed the importance of ensuring that the transition to a low-carbon economy is just and inclusive, providing opportunities for affected sectors, employees, and communities.
The government is also investing in retraining programs, creating new job opportunities in renewable energy, and supporting small enterprises in impacted areas. Ramaphosa highlighted the need for substantial investments to build sustainable infrastructure, develop green technologies, and support social programs, noting the significant gap between available disaster funds and the cost of disaster response.
“While we have set up a Climate Change Response Fund, we need to seriously consider urgent financial and policy measures to address these shocks and strengthen the National Treasury’s disaster financing response,” he added. The Department of Forestry, Fisheries, and the Environment is collaborating with the Presidential Climate Commission on recommendations for the Climate Change Response Fund and an accompanying Adaptation and Resilience Investment Plan.
Ramaphosa called on international partners to honor their commitments to finance both mitigation and adaptation efforts, acknowledging that financing remains a challenge. Despite the establishment of the Green Climate Fund and other global mechanisms, he emphasized the need for more innovative financing solutions that mobilize private capital and incentivize sustainable practices.
“The National Treasury’s Climate Finance Strategy is crucial, outlining how we can leverage public and private finance to achieve our climate goals,” he said. Ramaphosa also highlighted the importance of domestic capital and financial markets in supporting the just transition.
He announced the upcoming launch of the Just Energy Transition Funding Platform, a precursor to a broader Just Transition Financing Mechanism, which is being developed by the Presidential Climate Commission. “We urge South African businesses to invest in the projects necessary for a successful just transition. Blended finance is key to unlocking private sector flows,” President Ramaphosa concluded.
