Speech by Deputy Minister in The Presidency, Nonceba Mhlauli, on the occasion of the UNDP OFS Roundtable, Pretoria

Monday, 28 October 2024

Speaker of the National Assembly, Hon Thoko Didiza; Chairperson of the Eskom Board, Dr Mteto Nyathi; Chairperson of the Presidential Climate Commission, Dr Crispin Olver; UNDP South Africa Representative, Mr Maxwel Gomera; President of Open Society Foundation, Ms Binaifer Nowrojee; Members of the Diplomatic Corpse; Distinguished guests;
Ladies and gentlemen;

It is a great pleasure for me to form part of this engagement on our country's journey towards a sustainable future.

Speaking recently at the Inaugural Just Energy Transition (JET) Municipal Conference, President Cyril Ramaphosa reiterated that rapid, sustainable and inclusive economic growth is a central priority of the Government of National Unity and thus, low-carbon, climate resilient development is central to achieving this inclusive growth.

As a signatory to the Paris Agreement, South Africa is committed to contributing its fair share to the global climate change effort, Ramaphosa said.

Part of this commitment as government is to domesticate this engagement to ensure that we not only speak about a Just Energy Transition but also answer the question on access to energy and energy security to grow the economy for the benefit of all. It is for this reason that the Just Energy Transition (JET) Investment Plan and the JET Implementation Plan for 2023 to 2027 embody our commitment to an energy transition that aligns with our climate goals which are an environmental necessity, to our imperatives for social justice, economic growth, and the well-being of our people.

In addition, The Presidential Climate Commission (PCC) has a bold strategy to accelerate South Africa's transition to renewable energy and align the country's energy policies with international climate commitments. The PCC's strategy includes ambitious targets for renewable energy deployment, aiming for 50 to 60GW of renewable power over the next decade - which averages out to between six and 8GW of new capacity annually.

Fellow compatriots,

The South African government has committed to the goals set forth in our Nationally Determined Contribution (NDC) under the United Nations Framework Convention on Climate Change.

Our NDC outlines a clear emissions trajectory, one that recognises the urgency of our climate crisis and our responsibility to mitigate its impacts. And we must do this at a pace, scale and cost that is consistent with the country's social and economic development path.

This year, we took a significant step forward with the signing of the Climate Change Act into law. This legislation does not merely serve as a guideline; it enshrines our emissions reduction trajectory into statute.

It mandates that all government policies must align with our climate goals, incorporating carbon budgets and sectoral emissions targets. This legal framework underscores our commitment to climate mitigation and adaptation, making it clear that our path forward must be both ambitious and accountable.

The Climate Change Act, incorporates the country's emissions reduction trajectory into statute, and requires all government policies and measures to align with its goals on climate mitigation and climate adaptation. It introduces carbon budgets, placing obligations on major emitters, and establishes sectoral emissions targets.

It is our firm belief as government that climate action must support our national imperatives to address poverty, inequality, and unemployment.

Colleagues, we must remind ourselves that the scale of investment needed to achieve our greenhouse gas emissions targets is substantial. The JET Investment Plan estimates that we require approximately $98 billion to mobilise from diverse sources.

This funding will not only be invested in renewable electricity but also in new energy vehicles and the green hydrogen sector.

Additionally, we recognise the vital importance of supporting the Mpumalanga province through this transition, ensuring that municipalities are equipped to play their part, and addressing the pressing skills requirements that this transition demands.

Skills Development for the Future

Ladies and gentlemen, at the heart of our Just Energy Transition lies a commitment to skills development.

We must reskill our existing workforce and equip our youth with the skills necessary for the clean energy economy. This dual focus is critical for fostering new industrial opportunities and ensuring that our young people can access jobs within the clean energy value chain.

Access to jobs by young people is all the more critical as the youth of South Africa aged between 15 and 34 continue to battle high levels of unemployment. The recent data from the Quarterly Labour Force Survey (QLFS) of Statistics South Africa show that the youth remain very vulnerable in the labour market.

Thus the JET Implementation Plan is designed to create institutional capacity across government, ensuring that the Just Transition is mainstreamed into all levels of policy and action.

To achieve this, the Department of Higher Education and Training will lead the establishment of the JET Skills Desk. This desk will work closely with the Human Resources Development Council and engage a broad range of stakeholders in the higher education and training sector, both within and outside of government.

Our plan includes the creation of Skills Development Zones tailored to the key value chains associated with the JET. For instance, we will focus on electricity sector skills initiatives in Mpumalanga, develop green hydrogen activities in the Northern, Eastern, and Western Cape, and bolster skills for the new energy vehicle sector in the Eastern Cape and other manufacturing hubs.

These Skills Development Zones are designed to foster multi-stakeholder support, establishing the partnerships necessary to ensure a robust supply of skills that can meet the evolving demands of the job market.

We envision an ecosystem for the Just Energy Transition that harnesses the potential of new technologies and value chains to provide meaningful employment for both existing and new workers.

This ecosystem will be built on coordinated curricula and skill development opportunities tailored to the needs of our economy. We recognise that successful implementation hinges on strong institutional architecture and a commitment to collaboration across sectors.

By working together-government, private sector, educational institutions, and communities-we can mobilise significant resources to address the skills needs of our Just Energy Transition.

In closing, it is crucial to understand that South Africa not only acknowledges the existential threat posed by climate change but also embraces the immense opportunities that arise from climate action.

By investing in a Just Energy Transition, we are not merely responding to an environmental crisis; we are laying the groundwork for economic growth and the creation of new employment opportunities for future generations.

A just transition to a low-carbon economy will benefit all South Africans by driving economic growth, creating jobs and increasing our energy security, while addressing the serious threat of climate change.

Our commitment to a just and equitable transition is not just a moral imperative; it is a strategic choice for a resilient and sustainable future. Let us work together to ensure that South Africa emerges from this transition as a leader in renewable energy, innovation, and social equity.

Thank you for your attention, and we look forward to collaborating with all of you on this transformative journey.