Opinion: Treasury dismissing vital climate financing incentives as EU carbon sanctions come closer

In this article, DG Capital African Green Alpha director Shaun Nel takes a critical look at how and why renewables tax incentives need to be better leveraged in the Just Energy Transition (JET) and South Africa’s economic recovery, and how the looming EU Carbon Border Adjustment Mechanism makes this imperative that much more urgent.
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Miners worry about South Africa’s lagging transition, looming electricity cost increases

South Africa is far behind in its work to transition to a carbon-neutral energy system by 2050, and the significant proposed electricity tariff increases being sought by State-owned Eskom could lead to some businesses and industrial hubs being closed down, mining companies have warned. The companies have pointed out during discussions at this year’s Joburg Indaba that Eskom’s current proposed 36% increase in electricity tariffs is several times greater than inflation.
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South Africa fires up diesel turbines to keep power cuts at bay

Eskom has been using diesel-fuelled auxiliary turbines extensively to stave off power cuts in South Africa following delays in restoring some generation capacity. The utility fired up the units after 2 685 megawatts of capacity failed to return to service on September 23 as planned, Eskom said in a reply to questions. “Additionally, higher-than-expected electricity demand driven by cold weather has contributed to this situation,” it said.
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Depleting gas reserves threaten future gas security

Future security of supply is of major concern to pipeline operator Republic of Mozambique Pipeline Investments Company’s (Rompco’s) as gas supply from the Pande and Temane gasfields, operated by energy company Sasol in Mozambique, is expected to decline from 2026. The Pande and Temane gasfields have an anticipated 25-year lifespan. Production began in 2004, making Pande the first gas production field in Mozambique, followed by Temane in 2009.
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Pace of energy transition cause for concern

Despite consensus among South African businesses, including integrated energy and chemical company Sasol, on the necessity of achieving net-zero emissions by 2050, the debate regarding the pace of this transition continues. Speaking at the 2024 Coal and Energy Transition Day, held in July at The Country Club Johannesburg, Sasol sustainability VP Shamini Harrington noted that, given Sasol’s sizable economic impact and similarly significant emissions footprint in South Africa, there was an urgency for Sasol to move towards lowering its carbon emissions.
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