‘Just Transition Transaction’ can unlock fiscal space for South Africa’s low-carbon shift

A Just Transition Transaction (JTT) that enables South Africa to secure highly concessional finance from rich countries in return for accelerated decarbonisation would help create the fiscal space required to take such a programme forward, a new Meridian Economics study asserts. Released to coincide with the visit to South Africa of climate envoys from Europe, the UK and the US ahead of the upcoming COP26 gathering in Glasgow, Scotland, the study argues that such a transaction could yield interest savings of R100-billion over 25 years and unlock the R750-billion in investment needed to support the country’s transition from coal to renewables.