Just Energy Transition (JET) and Decarbonising Transport
The Just Energy Transition Investment Plan (JET IP) is South Africa's $8.5 billion (initial commitment from international partners) blueprint for the five-year period (2023-2027) to meet its climate commitments while ensuring the transition is just—meaning it protects livelihoods and creates new jobs.
The JET IP includes six primary portfolios, with three directly related to energy and fuel use: Electricity, New Energy Vehicles (NEVs), and Green Hydrogen (GH2).
New Energy Vehicle (NEV) sector
The NEV sector is a key focus because the global automotive industry, a major employer and exporter for South Africa, is rapidly shifting towards electric and hybrid technologies.
The problem: South Africa's automotive manufacturing relies heavily on exports, primarily to the European Union (EU). The EU is adopting stringent emission rules, such as the Carbon Border Adjustment Mechanism (CBAM), that will penalise exports of traditional Internal Combustion Engine (ICE) vehicles.
JET IP's goal: To protect the automotive sector and its jobs by pivoting local manufacturing toward New Energy Vehicles, which includes Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs).
Key Interventions:
Manufacturing incentives: The government has introduced tax incentives for manufacturers to localise the production of NEVs and their components (e.g., batteries).
Demand stimulation: There is a push for supportive policy frameworks, including potential tax rebates or subsidies for consumers, to make NEVs more affordable and accelerate local adoption.
Infrastructure: The plan includes investments in developing the necessary charging infrastructure across the country, which is currently a significant barrier to widespread adoption.
Alternative Fuels: Green Hydrogen (GH2) and Biofuels
The plan also seeks to diversify the "fuel" supply away from traditional liquid fossil fuels.
Green Hydrogen (GH2)
South Africa has significant advantages (sunlight, wind, platinum group metals) to become a global leader in Green Hydrogen production.
Role in Transport: Green Hydrogen is seen as a clean fuel source for hard-to-abate sectors, particularly:
Heavy-Duty Transport: Long-haul trucking and mining haul trucks, where battery-electric solutions are less practical due to weight and charging time.
Export: Establishing export hubs to ship GH2 and its derivatives (like green ammonia) to international markets.
Initiatives: Developing "Hydrogen Valleys" in areas like the Platinum Valley Initiative (PVI) to link production with industrial and mobility demand.
Biofuels
While not the primary focus of the initial JET IP funding, biofuels are an existing part of South Africa's clean energy strategy, governed by the Biofuel Regulatory Framework (BRF).
Role: Sustainable biofuels (produced from plant matter or waste) can be blended with petrol and diesel to immediately lower the carbon intensity of liquid fuels without requiring significant engine changes.
Status: The framework has historically faced challenges in implementation and scale-up, but the broader commitment to sustainable fuels is being reaffirmed to decarbonise the transport sector alongside the shift to NEVs and GH2.
