South Africa’s Green Transition: Balancing Environmental Goals with Employment Needs

President Cyril Ramaphosa of South Africa reaffirmed his country’s commitment to transitioning from coal to renewable energy sources on Monday, while emphasizing that this shift must not come at the expense of jobs.

As the most industrialized economy in Africa, South Africa is also one of the largest greenhouse gas emitters globally, with 80% of its electricity generated from coal.

This fossil fuel is a cornerstone of the national economy, providing employment for over 100,000 people.

“We are dealing with a climate challenge of unprecedented magnitude,” Ramaphosa stated during a meeting with government representatives and international donors focused on transitioning to a more climate-friendly economy.

However, it is “essential” that this transition “be fair and inclusive, ensuring that no worker or community is left behind,” he added.

South Africa will decarbonize “at a pace and scale that is manageable for our economy and society,” Ramaphosa assured diplomats, climate scientists, and financiers.

Moving too quickly, before alternative solutions are in place, could potentially damage significant sectors of the economy, he warned.

In 2021, wealthy nations endorsed South Africa’s plans to reduce coal dependence as part of an $8.5 billion program, which also aims to support coal workers facing job losses.

In 2022, the World Bank granted $497 million to dismantle one of the country’s largest coal-fired power plants and transition it to renewable energy.

Despite these efforts, resistance to abandoning coal persists, even within Ramaphosa’s own African National Congress (ANC), which has ruled for three decades and traditionally enjoyed strong support from miners’ unions.

Employment remains a critical issue in South Africa, where the unemployment rate exceeds 30%.

The country has also faced electricity shortages. Aging and poorly maintained infrastructure of the state-owned electricity company led to significant power outages, reaching up to 12 hours per day in some regions last year.

In recent years, South Africa has opened up to private investment to create a competitive electricity market and has highlighted green hydrogen and wind energy as alternative solutions.

In his speech, Ramaphosa emphasized that carbon taxes imposed on businesses serve as a crucial incentive to invest in cleaner technologies. He also mentioned that the government is investing in retraining programs to mitigate job losses from the green transition and support small businesses.

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