South Africa has used coal to make electricity for decades. The country’s transition plan will cost billions and hurt jobs. But is there a way out?

World leaders have gathered in Dubai to discuss climate issues. This includes ending the use of fossil fuels.

Now South Africa is being forced to phase out its almost 100% reliance on coal for energy generation. This will cost a lot, including losing jobs.

President Cyril Ramaphosa gave the country a plan called “Just Energy Transition Implementation Plan.”
which is estimated to cost $25 billion.

The plan shows how South Africa will reduce its dependence on coal, get new sources of renewable energy, and build new industries and jobs for affected communities and workers.

But President Ramaphosa told reporters that South Africa would need external help to pay for it.

We want more countries to join because we need more money for our energy transition. This will help us move forward more efficiently and fairly, especially for communities that will be affected. Ramaphosa told reporters.

South Africa’s plan to cut back on coal use will hurt its labor market.

A large part of the economy of Mpumalanga province in the country’s east depends on coal mining and coal power stations. If coal is taken out of the equation, Mpumalanga’s economy will have to be rebuilt.

The country’s car assembly plants will need billions of euros to make the switch to electric car production.

With the implementation of the plan coming up, labor unions are now trying to make sure their workers have a good future. Phakamile Hlubi-Majola, the spokesperson for the National Union of Metalworkers of South Africa, told they want full guarantees that the plan will protect livelihoods.

He said that the process should help as many people in the country as possible.

It needs to keep as many jobs safe as possible.

Leo Roberts from the think tank E3G said South Africa’s entire economy is being dragged down by an “over-reliance” on old coal plants.

He said that coal power isn’t providing reliable electricity and there are rolling blackouts.

It’s very expensive and the company that runs the power system called Eskom is so in debt that they can’t borrow money.

Eskom, which provides electricity for the country, is having a hard time making enough. Eskom would have to train many of its workers to stay relevant in the renewable energy sector.

Adil Nchabeleng, an energy analyst, says South Africa’s energy situation is still going to clash with its pledges at COP28.

We use coal to make electricity, and we need to make sure those power stations can last for at least 20 years. We also need to make enough electricity to meet our needs.

But in the end, the South African government believes there is hope. International partners have pledged just over €10 billion in concession loans and grant pledges to help with the transition phase.

The energy transition plan is expected to create 815,000 jobs by 2050.