International Partners Group IPG has officially announced an augmentation in its financial commitment to South Africa’s Just Energy Transition Investment Plan (JET-IP), raising the total financing from $8.5 billion to $9.3 billion. The International Partners Group, initially composed of France, Germany, the UK, the US, and the European Union, expanded its membership earlier this year to include Denmark and the Netherlands.Simultaneously, Cabinet approval of the Just Energy Transition Implementation Plan (JET-IP) was disclosed by Minister in the Presidency Khumbudzo Ntshavheni during a briefing in Pretoria on November 20. The JET-IP, which aligns with South Africa’s energy mix and commitment to a just transition, outlines interventions and investments required for transitioning to a low-carbon and climate-resilient economy, in accordance with the nationally determined contribution presented to the United Nations (UN). Minister Ntshavheni emphasised that the JET-IP is a response to South Africa’s obligations under the Paris Agreement, the UN Framework Convention on Climate Change, and the National Development Plan commitments. It will drive the transition through reforms in the energy sector, including the Mpumalanga just transition, new energy vehicles (electric vehicles), and green hydrogen.
Cabinet’s endorsement of the JET-IP reflects the country’s commitment to a just transition, balancing carbon emissions reduction with inclusive economic growth, energy security, and employment. Minister Ntshavheni noted that the plan is designed to gradually meet carbon emissions reduction commitments while ensuring positive economic outcomes.Additionally, Cabinet acknowledged the ongoing negative impact of electricity and logistics constraints on the manufacturing, mining, transport, and utilities sectors. Minister Ntshavheni expressed confidence that visible progress in eliminating both load shedding and logistics constraints will soon be realized, affirming the government’s dedication to addressing these challenges. This development coincides with IPG’s increased financial commitment, reinforcing the collaborative efforts to advance South Africa’s Just Energy Transition.