In late October, the Komati coal-based power plant, located in South Africa's Mpumalanga region, was shut down after operating for 60 years. The electricity sector accounts for a significant share of greenhouse gas emissions in the country, representing 41% of the total emitted, while 77% of the energy is generated by burning coal.

But that doesn't mean the plant will no longer have life: it will be transformed into a renewable source unit with solar and wind power generation. The decommissioning of Komati – the first coal-goer to be retired in South Africa – marked the beginning of an ambitious phase for the country that is the most industrialized (and the largest polluter) on the African continent: the implementation of the just energy transition plan.

In 2021, in Scotland, the Government of South Africa, with France, Germany, the United Kingdom, the United States and the European Union – which together formed the International Partners Group (IPG) – announced at COP26 a long-term partnership to finance the smooth South African transition. The agreement provided for an investment of $8.5 billion in donations and loans over the next five years.

At COP27 in Egypt, with the advance of details of the plan to be put in place, the Government of South Africa officially signed the first contract to receive the funds. In total, the transition, which will be implemented over two decades, will cost around $98 billion – the amount promised by the IPG is just the kickoff to begin work, but signals the possible path ways of agreements between rich and developing countries to decarbonize the global economy.

The South African strategy touches on three main points: retiring coal-fired power plants before the end of their useful life, building clean energy sources and ensuring support for coal-dependent regions, with particular emphasis on the inclusion of women in the new roles that will be created. With 60 million inhabitants, the high dependence on coal makes South Africa the 13th largest carbon emitter in the world. In addition to domestic consumption, 28% of coal production is exported, placing the country as the fourth largest global supplier of the commodity.

For The Climate Action Network (CAN) national coordinator in South Africa, Thandu Lukuku, the plan is innovative for addressing emerging issues such as electric vehicles and new forms of power generation in the country, such as green hydrogen. "No one has done this before. So we are literally walking through uncharted territory," he said. At the same time, existing infrastructure will continue to serve the population while the transition is implemented. "We have more complex issues regarding socioeconomic conditions in South Africa. This is harder to solve than infrastructure," he said.

According to official data from the country, unemployment reaches 33.9% of the population. In the region where the Komati plant was decommissioned, the unemployment rate reaches 40%. In a panel held at COP27, the head of Mitigation of south Africa's Presidential Climate Commission (PCC), Steve Nicholls, said a key point was to involve the community in discussions on the implementation of the project.

"Normally, we think of fair transition as a form of parity, replacing exactly the number of jobs that existed by the same amount. However, these plants operate in locations with 40% unemployment. Switching from one to one is not enough. We have to create more opportunities to reduce this rate to globally acceptable levels," he explained.

In addition to the partnership created with governments, the Komati plant's case received a $497 million contribution from the World Bank, approved in early November. The resources will be used in community projects, skills training, incubation support and business development services for micro, small and medium-sized enterprises and for job creation. The plant will have a combination of energy solutions, with 150 MW of photovoltaic solar and 70 MW of wind, as well as 150 MW batteries.

The initial project is positive, but there is a long way to go, especially in obtaining the funding needed to succeed. For Alessandra Lehmen, an environmental law expert at the LACLIMA group and the OAB's climate change committee, it is crucial to think about where the remaining resources will come from and how they will come: whether through unconditional mechanisms or loans, since this latter modality can result in indebtedness.

Despite the issues that need to be addressed, the partnership has taken important steps for the global community. "The agreement shows the willingness of developed countries to help finance the decarbonization of a developing country highly dependent on coal, and the plan's concern about fair transition and gender issues, that is, to ensure the inclusion of workers and the community, including women, in the new activities to be financed," he said.

A few days ago, a similar agreement was signed with Indonesia, the world's 5th largest emitter of greenhouse gases. The country will receive $20 billion in public and private funding to close coal plants. Let other partnerships of this kind come!

Source: Um só Planeta