Latest news with #JETP
IOL News
2 days ago
- Business
- IOL News
Is JETP the savior of South Africa - or is it about to make the embattled country's problems worse?
Just four years after its announcement, the Just Energy Transition Partnership is under heavy scrutiny. Image: File JETP is a multi-year project to assist South Africa with decarbonisation, with the support of governments around the world, including France, the Netherlands, Germany, the UK, and the European Union, also known as the International Partners Group (IPG). However, just four years after its announcement JETP is under heavy scrutiny, experts say the groundbreaking multi-billion-dollar scheme to decarbonise South Africa is now under threat of collapse, against a backdrop of a local economy addicted to coal, skyrocketing coal imports to the EU, claims of modern colonisation, concerns over transparency, and crumbling support. Europe's decision to dramatically increase coal imports from South Africa - just months after announcing the JETP plan - raises doubts about how serious they really are about helping the country move away from coal. On the surface, JETP looks like a way to transition South Africa toward cleaner energy, but when you take a closer look, it's unclear who will actually benefit and whether there's a real long-term strategy in place. Celine Tan, who is a professor of International Economic Law and co-director of the Centre for Law, Regulation and Governance of the Global Economy, has spent almost a year leading an investigation into the financing of energy transitions in developing countries. Tan says that JETP in South Africa has been 'rushed' and is 'politically expedient'. "[JETP] is so ambitious but it has not really been thought through - we have heard from partners it has been very chaotically done." Celine said that her research had thrown up a multitude of issues, from an apparent lack of reskilling and relocating workers to a lack of assessment on energy needs, to disruption from new green energy systems such as dams or hydrogen plants, to the type of financing - the list goes on. "The quality of financing is suspect," she says. "A lot of it is debt-based and loans. When we looked into types of financing, there were a lot of guarantees, blended finance, and pledges to go into joint ventures." Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The South African JETP has a lot riding on its shoulders. This is a pilot project to demonstrate how developing countries can be supported in decarbonising by developed countries through public and private investment, and transition to a low-emission, climate-resilient EU says the partnership is expected to prevent up to 1-1.5 gigatonnes of emissions over the next 20 years, more than 50 times the yearly emissions of London. To date, international pledges to the South African JETP are at $12.8 billion (R229bn). A report from the Project Management Unit (JET PMU), which was set up in the South Africa's President Office in January 2023, reveals that out of the $12.8bn llocated, only $764 million is free funding (grants). More than $8bn comes as loans that must be repaid, and just under $2bn is in export credits, meaning much of the money is not simply being given to South Africa - it is tied to conditions. Nearly $9bn of the $12.8bn comes from partner countries, while the rest is made up by multilateral development banks, such as the World Bank. According to the first quarter report of 2025, $583m of the grants have been allocated, with the majority going into electricity, green hydrogen, and the just transition in Mpumalanga, South Africa's biggest coal mining region. Alex Lenferna, the founder of Climate Justice Coalition (CJC), questions the funding techniques and says it is crucial to protect ordinary working people and ensure renewable energy is affordable and accessible. "With JETP, there is a big push with foreign investment, but there is no such thing as a free lunch. With the liberalisation of energy markets, they are opened up to the private sector, meaning those who have access to wealth can most take advantage," Lenferna said. The Africa Climate Alliance argues that climate financing through debt can have crippling effects and that to decarbonise, debt relief is crucial. 'Debt relief and fair carbon finance is essential in allowing countries to reinvest in sustainable industries instead of relying on coal revenues'. Member of Parliament Kevin Mileham, who sits on the Portfolio Committee on Electricity and Energy, says the loan funding built into JETP is a huge debt burden on South Africa's already fragile economy. For this reason alone, he says that JETP needs to be urgently rethought. "I think that the whole program probably needs a review of what its goals are and how they are going to be implemented, Mileham said. Mileham says that if the transparency and implementation of JETP do not drastically improve, in five years the money will have been "frittered away and there won't be anything to show for it." President Cyril Ramaphosa entrusted the JETP to the Presidential Climate Commission (PCC), a multi-stakeholder body tasked with overseeing the facilitation and creation of a framework to meet the objectives of the JETP. In 2023, the PCC released the JET Investment Plan (JETIP), outlining a vision and investment strategy for the first five years while aligning with its defined just transition principles. The same year, JET PMU was established by the Presidency to provide an implementation roadmap for the Just Energy Transition Investment Plan. The Just Energy Transition Project Management Unit (JET PMU) published a detailed Grant Register that shows where grant funding has been allocated, but no such document exists for the loans. During the fanfare of the new scheme, many of the declared loans were apparently allocated even before an investment plan was released, meaning that projects developed and paid for pre-JETP were added to the IPG's JETP grants. Tracey Davies, the executive director of Just Share, a South African non-profit shareholder activist organisation, says the Grant Register was picked up by media in February 2024, and showed that since November 2021, R10bn (about $591m) had been allocated to 145 projects. By the time the JET Investment Plan was unveiled by President Cyril Ramaphosa on November 4, 2022, 89 of the 145 projects, worth more than R5.3bn, had already commenced. "I don't see any evidence of that overarching plan. The projects are disparate and don't appear to link up to each other. A lot of them are repeating work that's already been done. There's no clarity on how the loans and the concessional loan funding are being managed. And as far as I can tell, nobody outside the IPG or the PMU has a handle on how that money is being allocated. I mean, nobody knows," Davies said. Julia Taylor, a researcher on Climate and Inequality at the Southern Centre for Inequality Studies at the University of Witwatersrand, worries that JETP funding is not nearly enough to meet the demands of South Africa's social, environmental, and energy issues, particularly because of the low levels of grant funding. She also argues that the JETP has not generated significant new grant funding but has taken existing projects and labelled them JETP projects, with grant funding going to consultants and private sector companies doing feasibility studies into areas she believes are not critical to South Africa, such as green hydrogen. ''People who are most interested in green hydrogen are European countries like Germany. And there's been a huge push from those countries for alternative fuel sources. The idea is that we'll then export back to them. Is that in the interest of South Africa's just transition? I don't think so…we don't even have enough electricity ourselves to run our economy. Why would we then be building more renewable energy for green hydrogen?," Taylor said. Getting word from some government departments involved in JETP seems to back up the air of confusion and opacity around the scheme. A government spokesman said that the Department of Mineral Resources and Energy (DMRE), charged with leading sustainable development in South Africa's mining and energy sectors, 'ceased to exist as of March 31, 2025', meaning they would not discuss anything prior to that point and redirected us to the PCC. When we reached out to the PCC for comments, Blessing Manale, the head of communications and outreach could not provide us with answers to many of our questions noting that the PCC is not in a 'position to respond'. Manale noted that the 'PCC supports the JETP. When the JETP was released, we made recommendations on strengthening it. We collaborate with the JET_IP PMU in its implementation as well as monitoring and evaluation of its impact. We have made additional recommendations on various aspects of Climate Finance.' \ Guarding against green colonialism Sonja Boschoff, a member of the National Council of Provinces representing the Mpumalanga province, says that South Africa must make sure it's in charge of its own transition to avoid green colonialism and must 'guard against a transition imposed and dominated by external actors'. Just months after the EU announced the JETP and its commitment to supporting South Africa in a just phase-out of coal, Europe's coal imports from South Africa increased eightfold, reaching 3.54 million tons by 2024 - a 77% increase over 2021, according to Reuters. Much of this renewed interest came after Russia invaded Ukraine in 2022, and the EU imposed sanctions on Russian coal and gas, causing European countries to turn to other coal suppliers.
The Star
27-05-2025
- Business
- The Star
Vietnam party leader values multifaceted cooperation with France
HANOI: Vietnam values and wishes to strengthen multifaceted cooperation with France – its first comprehensive strategic partner in the European Union, Party General Secretary To Lam affirmed on Monday (May 26) while receiving French President Emmanuel Macron, who is on a three-day state visit to Vietnam. Lam said that the visit holds particularly important significance, affirming both sides' strong determination to implement concrete outcomes of the Vietnam – France Comprehensive Strategic Partnership. Vietnam supports France in playing an important role and having a strong voice in the region and the world, including at international forums and organisations, he stated, proposing both countries continue to promote their shared advantages to harmoniously address regional and global issues. Macron expressed his pleasure at making his first state visit to Vietnam – a partner with an important role and position in France's Indo-Pacific strategy. He emphasised that the Vietnam – France relationship is a special one, shaped by various historical phases and now built on a foundation of strong mutual trust and respect. Recognising the Vietnam – France Comprehensive Strategic Partnership as a highlight amidst rapidly evolving and complex global developments, the two leaders held an in-depth exchange on all areas of bilateral cooperation since the elevation of ties in October 2024. They expressed satisfaction with the significant progress made in recent times, particularly in the fields of economy and trade, high-level exchanges and mutual support at international and regional forums. The leaders affirmed their continued priority in promoting cooperation in politics and diplomacy, defence and security, including cybersecurity, economy and trade, maritime economy, development cooperation and people-to-people exchanges, particularly in culture, education and training. They also agreed to advance the signing of key cooperation agreements across various sectors. Both sides agreed to enhance cooperation in energy transition, with France supporting Vietnam within the framework of the Just Energy Transition Partnership (JETP); and expand collaboration into nuclear energy, human resources training and the peaceful use of atomic energy, such as in the healthcare sector. General Secretary Lam suggested France accompany Vietnam in making science and technology a new pillar of bilateral cooperation in the current era. He also called on France to support Vietnam in strategic areas such as aerospace, biotechnology, digital technology, semiconductors, quantum technology, the digital economy and high-quality human resources training. They highlighted the importance of enhancing cooperation in areas where both sides see great potential, France holds strengths and Vietnam has growing needs, such as strategic infrastructure, urban transportation and railways, to meet the objectives of Vietnam's new era of national development and prosperity. President Macron emphasised that France always wishes to strengthen cooperation across all sectors with Vietnam, especially in strategic areas like economy and trade, security and defence, science and technology, culture, education and health care, in line with the nature and stature of the comprehensive strategic partnership between the two countries. Macron appreciated Vietnam's international commitments at multilateral institutions, particularly in key areas such as sustainable development, environmental protection, emissions reduction and climate change adaptation. He stressed France's support for multilateralism, including multilateral trade, and affirmed that his country is ready to support and accompany Vietnam in implementing these commitments. The two leaders agreed to cooperate in preserving and promoting cultural values through the sharing of experience in heritage conservation, museum operations, cinema arts, collaboration and support in sharing materials on Vietnamese cultural heritage, as well as training professional artists and performers. Building on the long-standing tradition of cooperation, both sides also consented to promote collaboration in the health sector, particularly in vaccine research, early screening technologies for serious diseases, and the application of science and technology in medical treatment, aiming to ensure public health. On this occasion, they exchanged views on many international issues of mutual concern, and agreed on the need to solve conflicts through dialogue. They called on countries in the region to fully implement the Declaration on the Conduct of Parties in the South China Sea (known in Vietnam as the East Sea) (DOC) and support all regional efforts to soon achieve a Code of Conduct (COC) that is truly effective, substantive and consistent with international law, especially the 1982 United Nations Convention on the Law of the Sea (UNCLOS); and promote cooperation in UN peacekeeping operations, search and rescue, combating organised crime, transnational crime, and cybercrime. The two sides reached a consensus on strengthening Vietnam – France cooperation in line with the interests of the two countries, supporting the promotion of Vietnam – EU and France – Asean relations, and continuing to coordinate in promoting multilateralism, and building a fair and democratic international system based on international law with the central role of the United Nations. - Vietnam News/ANN
News24
05-05-2025
- Business
- News24
Backing SA's green future with over R2bn for just transition projects
The challenging global context has not deterred our commitment to the Just Energy Transition Partnership with South Africa, it has reaffirmed it, writes the International Partners Group (IPG). The IPG consists of donor countries — United Kingdom, Germany, France, the European Union, Denmark and the Netherlands - who have pledged climate finance in the form of commercial debt and equity, concessional loans and grants to help South Africa achieve its climate ambitions and a just transition to a low carbon economy. Last week South Africa hosted the second Energy Transitions working group as part of its G20 Presidency. This was a critical moment to reflect on the important priorities set out by South Africa, including the delivery of just, affordable, reliable and inclusive energy transitions. To limit global warming to 1.5°C it is essential that we work towards a global reduction in emissions from fossil fuels, and the energy sector will have to lead the way. Exceeding 1.5°C risks potentially irreversible consequences, affecting the natural and human systems that keep us alive. As the world's 15th largest emitter of greenhouse gases, and as chair of the G20, South Africa's contribution is crucial. The countries of the IPG are aligned with South Africa on the importance of decarbonising our economies, while ensuring access to secure and affordable energy for all. To support these objectives, the Just Energy Transition Partnership was launched at COP26 in 2021. It is a partnership underpinned by a clear commitment to those directly affected by the energy transition. Workers, communities, and especially women and girls, must not be left behind. No country should have to choose between fighting poverty and fighting climate change. READ | ANALYSIS | South Africa vs US: What's really at stake We recognise that much has already been achieved but that difficult decisions will still need to be made. If managed well, the energy transition will be a source of job creation and economic growth. According to the World Bank, South Africa could create 815 000 direct jobs in the transition, significantly more that the estimated 302 000 jobs that would be lost. The challenging global context has not deterred our commitment to the JETP. It has reaffirmed it. Almost $12.8 billion (approximately R226.36 billion) of funding has now been pledged by IPG members and other partners committed to supporting South Africa. To date over $2.6 billion (R46 billion) of IPG funding has been allocated, including over $583 million (R10.3 billion) of grant funding. Of the grants, 30 projects totalling $116 million (R2.1 billion) are "Just" projects, aiming to create viable economic alternatives in coal-dependent regions, to ensure no community is left behind. For example: the Netherlands has partnered with Eskom to create agricultural jobs near the Grootvlei power plant; the UK is supporting citrus and nut farming and SMEs in Mpumalanga, aiming to create up to 3 200 local jobs; Denmark and France have provided 300 poor households in coal mining areas with energy access through solar; the EU is partnering with municipalities to improve delivery of water, energy services, and public infrastructure; and Germany, with co-funding from Switzerland, is providing measures for improving transition into employment to over 1 200 young people and support to over 500 SMMEs and entrepreneurs. IPG support is offered across all the pillars of South Africa's Just Energy Transition Implementation Plan, including electricity. The IPG are sharing expertise and financing to help improve energy infrastructure and implement an energy market. This is critical in achieving a sustainable and secure energy future for South Africa. For example, France and Germany have provided over EUR1.5 billion (R30 billion) in concessional loans to the government focused on managing the social impact of the just energy transition and Germany and Denmark have provided technical assistance to the government and Eskom to enable progress towards the liberalisation of the energy market. READ | SA pursues climate loans from Germany, UK as US walks away Germany's concessional financing of EUR150 million (R2.9 billion) for the City of Cape Town is strengthening grid infrastructure and the UK's Development Finance Institutions are providing innovative guarantees totalling $117 million (R2.1 billion) to trading companies to unlock renewable energy capacity through energy trading. Collaboration is at the heart of our JETP approach. A successful transition requires the continued knowledge and insights of South African universities, industries, businesses, and communities. We are committed to working with them all and ensuring as much project funding as possible is allocated locally. We know that the transition to a new energy future is a long and challenging journey that impacts the lives of all South Africans. All the countries of the IPG can be counted on as responsible, committed and reliable partners, and we are proud to support South Africa towards achieving a just and sustainable energy future that benefits all South Africans. This is a joint opinion piece by the International Partners Group which consists of the United Kingdom, Germany, France, the European Union, Denmark, and the Netherlands.
The Star
01-05-2025
- Business
- The Star
Indonesia secures US$60mil for solar project
The plant is slated to begin operations in 2026. JAKARTA: Standard Chartered, Germany's development finance institution DEG and France's Proparco have announced a US$60mil investment to fund the construction and operation of a solar photovoltaic (PV) plant in Indonesia. The 92 megawatt-peak Saguling floating solar PV plant, to be located in West Java, will be run by Saudi Arabia's ACWA Power and state-owned electricity company PLN's subsidiary PLN Indonesia Power. The plant is slated to begin operations in 2026. Once operational, it is expected to offset more than 63,000 tonnes of carbon emissions annually, according to a statement issued on Tuesday by the Glasgow Financial Alliance for Net Zero (GFANZ), of which Standard Chartered is a member. The project, part of Indonesia's Just Energy Transition Partnership (JETP), marks the first project-level financing deal since the United States formally withdrew from the initiative earlier this year. The US commitment in Indonesia is greater than US$2bil, made up of non-concessional loans, multilateral development bank guarantees and grants. Coordinating Economic Minister Airlangga Hartarto said that the Saguling project symbolised global collaboration: 'It represents our joint commitment to accelerate the clean energy transition and support inclusive, sustainable growth.' French Ambassador to Indonesia, Asean and Timor-Leste Fabien Penone said France had committed more than €450mil or about US$513mil to support Indonesia's energy transition under the JETP. 'The financing by the French development finance institution Proparco of the Saguling floating solar PV plant highlights our commitment to foster innovative renewable energies in Indonesia and to support its sustainable economic growth,' he said in the same statement. Initially, Indonesia was banking on the US$21.6bil in JETP pledges to transition from coal to cleaner energy. Roughly half of that funding, or US$11.6bil, is supposed to be raised from the public sector, particularly from the International Partners Group (IPG) members as donor nations, namely Canada, Denmark, France, Germany, Italy, Japan, Norway, Britain and the European Union. Washington had pledged to contribute over 20% of those public funds, the largest among all IPG members, but has since pulled out of JETP Indonesia. The rest of the JETP pledges are to be provided by the private sector under the coordination of GFANZ, consisting of Bank of America, Citi, Deutsche Bank, HSBC, Macquarie, MUFG and Standard Chartered. Indonesia is pinning its hopes on Germany and Japan, the new JETP coleaders, to revive the flailing initiative and accelerate the country's shift from fossil fuels to renewable energy. German Ambassador Ina Lepel in the same statement on Tuesday said the agreement highlighted growing collaboration between the International Partners Group and GFANZ, marking 'a new phase' where JETP projects were mature enough to secure investment contracts. Indonesia requires large sums of funding, especially grants for non-bankable projects like the early retirement of coal-fired power plants and for the development of green electricity. — The Jakarta Post/ANN
Time of India
01-05-2025
- Business
- Time of India
Indonesia plans 10 GW nuclear power in major renewable energy push, presidential aide says
Jakarta: Indonesia plans a major expansion in renewable energy by 2040, including the introduction of 10 GW of nuclear power, and expects contracts to be given in the next five years, a senior aide of President Prabowo Subianto said in an interview. That would more than double current capacity as Indonesia, one of the world's biggest emitters of greenhouse gases, aims for carbon neutrality before 2050, said Hashim Djojohadikusumo, Prabowo's brother and the president's special envoy for energy and climate. "Many of the contracts will be ... in the next five years ... especially the nuclear (contracts) because of the long lead times," Hashim told Reuters from New York. By 2040, he said Indonesia aims to have an additional 103 GW power capacity, made up of 75 GW from solar, wind, geothermal and biomass, 10 GW from nuclear energy, and the remaining 18 GW from gas. Indonesia's current installed power capacity is around 90 GW, more than half of it from coal. Renewables account for less than 15 GW of the current capacity, and the country has no nuclear power plants . Russian state nuclear firm Rosatom, China National Nuclear Corporation, Britain's Rolls Royce, France's EDF and the U.S. small modular reactor firm NuScale Power Corporation have shown interest in Indonesia's nuclear power ambitions, Hashim said. "I think it's conceivable that they will co-invest with an institution like Danantara," he said, referring to the recently launched Danantara Indonesia sovereign wealth fund. Hashim said no decisions had been made about the location of the nuclear plants, a controversial topic in a country that straddles the so-called Pacific Ring of Fire, where different plates on the Earth's crust meet increasing the risk of earthquakes and volcanic activity. He said the western part of Indonesia was suitable for single-site nuclear plants that a single unit can generate around 1 GW of power, while floating small-modular reactors generating up to 700 megawatts were suitable in the east. While the government is committed to energy transition, Hashim said it would take a balanced approach to achieving that goal as the president tries to lift the country's economic growth rate to 8% from around 5% in recent years. "The government does not want to commit economic suicide. There'll be no phase out, but there will be a phase down," he said. A deal with the Asian Development Bank for the early retirement of the 660 megawatt Cirebon-1 coal-fired plant in West Java province, which is backed by the $20 billion Just Energy Transition Partnership (JETP), is expected to be completed in the next few months, Hashim said.
