Shifting finance in South Africa to support a just energy transition
As countries transition to low-carbon and climate-resilient economies, finance flows will need to shift to support these transitions, in line with the third long-term goal of the Paris Agreement, Article 2.1c. The transition's success will also depend on it considering justice elements, to avoid any potential negative socioeconomic impacts in developing countries. South Africa was the first country to sign a Just Energy Transition Partnership (JETP). In this context, South Africa developed a Just Energy Transition Investment Plan (JET IP) laying out a series of policies and regulations the country would implement to achieve its just energy transition. This paper offers an analysis of these policies and regulations, using existing Article 2.1c approaches. It also seeks to integrate justice considerations into Article 2.1c approaches, to highlight the potential trade-offs between a rapid implementation of 2.1c in line with a 1.5°C temperature goal and potential socio-economic impacts.
