Latest news with #JustEnergyTransitionPartnership
IOL News
3 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
The Sun
26-05-2025
- Business
- The Sun
Malaysia urges ASEAN unity for fair, inclusive energy transition
KUALA LUMPUR: Malaysia, as ASEAN Chair for 2025, has called on member states to step up regional cooperation to drive a fair, secure and inclusive energy transition, in line with climate goals and the region's growing energy demand. Deputy Prime Minister Datuk Seri Fadillah Yusof said the region's energy future must be grounded in unity, practical frameworks and mutual benefits. 'As Chair of ASEAN in 2025, Malaysia is deeply committed to promoting dialogue, building consensus and advancing regional frameworks that will power a cleaner, more secure and more inclusive energy future,' he said. He said this in his keynote address at the Energy Transition Meeting in ASEAN: Fostering Regional Cooperation organised by MyDigital here today. Fadillah, who is also the Minister of Energy Transition and Water Transformation, said ASEAN's energy demand has been growing faster than the global average, at three per cent annually, and is projected to rise by more than 60 per cent by 2040, presenting both opportunities and challenges. 'This growth, while reflective of our economic dynamism, presents us with a pressing dilemma: how do we continue powering our progress while safeguarding environmental sustainability and ensuring affordability for all? 'The answer lies in a managed, inclusive and well-coordinated energy transition, one that reflects the diversity of ASEAN while advancing a common vision,' he said. He highlighted ASEAN's progress under the ASEAN Plan of Action for Energy Cooperation (APAEC) Phase II, noting that renewable energy now makes up 34 per cent of installed electricity capacity, though its share in total primary energy supply remains at 16 per cent. 'Vietnam has rapidly expanded its solar capacity by more than 20GW since 2019; Indonesia is anchoring a Just Energy Transition Partnership to transition to cleaner energy sources with at least USD20 billion of support; (and) Thailand has adopted a Bio-Circular-Green Economy model to align sustainability with productivity,' he said. He also reaffirmed Malaysia's target of 70 per cent renewables in installed capacity by 2050 under the National Energy Transition Roadmap (NETR). Fadillah said regional integration was crucial, especially through mechanisms like the ASEAN Power Grid (APG), which aims to unlock cross-border power trade, leveraging the region's uneven distribution of renewable resources. 'The Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) is a prime example of how multilateral electricity trade is possible, allowing countries to work together to deliver renewable electricity across borders. 'From a national perspective, Malaysia commenced its first cross-border green electricity trade with Singapore through ENEGEM (Energy Exchange Malaysia). In just 148 days, over 107 TWh of green electricity generated from solar and hydro has been successfully delivered across the Causeway to Singapore,' he added. He stressed the need to harmonise green attributes such as Renewable Energy Certificates (RECs) across the region to boost investor confidence and prevent double-counting. 'Malaysia strongly supports an ASEAN-wide framework for green attributes that aligns with international best practices,' he said, adding that this will be one of the priorities under Malaysia's ASEAN Chairmanship. Fadillah said Malaysia would work through existing ASEAN platforms and newer partnerships like the ASEAN-Gulf Cooperation Council and ASEAN-China dialogues, noting that the Gulf states bring substantial expertise in utility-scale renewables while China offers technology and financing. 'ASEAN must negotiate from a position of unity. A coordinated regional stance enhances our bargaining power, attracts large-scale investments and sends a strong signal that ASEAN is open for green business,' he said.
The Star
26-05-2025
- Business
- The Star
Fadillah: Malaysia urges Asean unity for fair, inclusive energy transition
KUALA LUMPUR: Malaysia, as Asean Chair for 2025, has called on member states to step up regional cooperation to drive a fair, secure and inclusive energy transition, in line with climate goals and the region's growing energy demand. Deputy Prime Minister Datuk Seri Fadillah Yusof said the region's energy future must be grounded in unity, practical frameworks and mutual benefits. "As Chair of Asean in 2025, Malaysia is deeply committed to promoting dialogue, building consensus and advancing regional frameworks that will power a cleaner, more secure and more inclusive energy future," he said. He said this in his keynote address at the Energy Transition Meeting in Asean: Fostering Regional Cooperation organised by MyDigital here on Monday (May 26). Fadillah, also the Energy Transition and Water Transformation Minister, said Asean's energy demand has been growing faster than the global average, at three per cent annually, and is projected to rise by more than 60% by 2040, presenting both opportunities and challenges. "This growth, while reflective of our economic dynamism, presents us with a pressing dilemma: how do we continue powering our progress while safeguarding environmental sustainability and ensuring affordability for all? "The answer lies in a managed, inclusive and well-coordinated energy transition, one that reflects the diversity of Asean while advancing a common vision," he said. He highlighted Asean's progress under the Asean Plan of Action for Energy Cooperation (APAEC) Phase II, noting that renewable energy now makes up 34% of installed electricity capacity, though its share in total primary energy supply remains at 16%. "Vietnam has rapidly expanded its solar capacity by more than 20GW since 2019; Indonesia is anchoring a Just Energy Transition Partnership to transition to cleaner energy sources with at least USD20bil of support; (and) Thailand has adopted a Bio-Circular-Green Economy model to align sustainability with productivity," he said. He also reaffirmed Malaysia's target of 70% renewables in installed capacity by 2050 under the National Energy Transition Roadmap (NETR). Fadillah said regional integration was crucial, especially through mechanisms like the Asean Power Grid (APG), which aims to unlock cross-border power trade, leveraging the region's uneven distribution of renewable resources. "The Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) is a prime example of how multilateral electricity trade is possible, allowing countries to work together to deliver renewable electricity across borders. "From a national perspective, Malaysia commenced its first cross-border green electricity trade with Singapore through ENEGEM (Energy Exchange Malaysia). In just 148 days, over 107 TWh of green electricity generated from solar and hydro has been successfully delivered across the Causeway to Singapore," he added. He stressed the need to harmonise green attributes such as Renewable Energy Certificates (RECs) across the region to boost investor confidence and prevent double-counting. "Malaysia strongly supports an Asean-wide framework for green attributes that aligns with international best practices," he said, adding that this will be one of the priorities under Malaysia's Asean Chairmanship. Fadillah said Malaysia would work through existing Asean platforms and newer partnerships like the Asean-Gulf Cooperation Council and Asean-China dialogues, noting that the Gulf states bring substantial expertise in utility-scale renewables while China offers technology and financing. "Asean must negotiate from a position of unity. A coordinated regional stance enhances our bargaining power, attracts large-scale investments and sends a strong signal that Asean is open for green business," he said. – Bernama
Barnama
26-05-2025
- Business
- Barnama
Malaysia Urges ASEAN Unity For Fair, Inclusive Energy Transition
GENERAL KUALA LUMPUR, May 26 (Bernama) -- Malaysia, as ASEAN Chair for 2025, has called on member states to step up regional cooperation to drive a fair, secure and inclusive energy transition, in line with climate goals and the region's growing energy demand. Deputy Prime Minister Datuk Seri Fadillah Yusof said the region's energy future must be grounded in unity, practical frameworks and mutual benefits. 'As Chair of ASEAN in 2025, Malaysia is deeply committed to promoting dialogue, building consensus and advancing regional frameworks that will power a cleaner, more secure and more inclusive energy future,' he said. He said this in his keynote address at the Energy Transition Meeting in ASEAN: Fostering Regional Cooperation organised by MyDigital here today. Fadillah, who is also the Minister of Energy Transition and Water Transformation, said ASEAN's energy demand has been growing faster than the global average, at three per cent annually, and is projected to rise by more than 60 per cent by 2040, presenting both opportunities and challenges. "This growth, while reflective of our economic dynamism, presents us with a pressing dilemma: how do we continue powering our progress while safeguarding environmental sustainability and ensuring affordability for all? 'The answer lies in a managed, inclusive and well-coordinated energy transition, one that reflects the diversity of ASEAN while advancing a common vision,' he said. He highlighted ASEAN's progress under the ASEAN Plan of Action for Energy Cooperation (APAEC) Phase II, noting that renewable energy now makes up 34 per cent of installed electricity capacity, though its share in total primary energy supply remains at 16 per cent. 'Vietnam has rapidly expanded its solar capacity by more than 20GW since 2019; Indonesia is anchoring a Just Energy Transition Partnership to transition to cleaner energy sources with at least USD20 billion of support; (and) Thailand has adopted a Bio-Circular-Green Economy model to align sustainability with productivity,' he said.
