Germany and South Africa have launched a transformative Just Energy Transition Partnership (JET-P) to shift from coal to renewables, tackle climate change, and ensure a fair, inclusive transition for all communities.
Introduction
As the climate crisis intensifies and geopolitical dynamics shift rapidly, nations are reevaluating how they collaborate on energy transition. One such collaboration is the Just Energy Transition Partnership (JET-P) between Germany and South Africa, a flagship initiative aimed at phasing out coal, expanding renewable energy, and ensuring a socially inclusive transition for vulnerable communities.
This ambitious partnership is not merely about switching energy sources—it’s about restructuring economic models, workforce dynamics, and national infrastructures. Yet, as with many large-scale efforts, the Germany–South Africa JET-P faces mounting challenges. Political instability, financial constraints, and diverging priorities have begun to slow momentum.
This article explores the vision behind the partnership, evaluates what has been achieved so far, highlights the barriers standing in the way, and proposes actionable recommendations to ensure that the project delivers on its transformative promise.
The Vision Behind the Partnership
South Africa is heavily reliant on coal, with over 80% of its electricity generated from coal-fired power plants. Simultaneously, Germany—one of the global leaders in renewable energy technology—has positioned itself as a key supporter of global energy transition initiatives.
In this context, the JET-P emerged as a strategic bilateral effort aimed at:
- Reducing South Africa’s greenhouse gas emissions by transitioning from coal to renewables.
- Rebuilding outdated electricity infrastructure.
- Supporting economic and workforce reintegration for communities affected by mine closures.
- Boosting investment in solar, wind, and green hydrogen industries.
- Ensuring the transition is not only environmental, but socially just and economically inclusive.
The initiative gained global attention as a potential blueprint for other coal-dependent developing countries aiming to meet climate targets without compromising development goals.
Financial Realities and Limitations
Although the partnership was announced with great enthusiasm, a major stumbling block quickly surfaced: funding gaps. While the pledged amount of $8.5 billion was celebrated, it soon became clear that most of it would come in the form of loans, not grants—a key distinction in a country already burdened by debt and economic inequality.
Estimates indicate that South Africa needs over $90 billion to fully execute its energy transition plans. That leaves a significant financing shortfall. Moreover, the structure of current funding—heavily debt-based—raises concerns about its sustainability and its capacity to attract private-sector investment.
Without more substantial and flexible financial commitments, South Africa may find it difficult to maintain public support for the transition, especially in regions where economic stability is directly tied to coal production.
Energy Justice at the Core
At the heart of the JET-P lies a vital principle: justice. South Africa’s economy is deeply intertwined with coal, particularly in provinces like Mpumalanga, where entire towns depend on coal mines for employment, housing, and public services.
A sudden or poorly managed shift could devastate these communities. Hence, the idea of a just transition includes:
- Job retraining and re-skilling programs.
- Financial support and social protection mechanisms for displaced workers.
- Development of new industries and infrastructure in affected regions.
- A participatory governance model involving local stakeholders.
This social dimension is not a side concern—it is central. Without it, the energy transition risks deepening poverty and inequality rather than reducing it.
Institutional and Operational Barriers
The success of any large-scale energy transformation depends not only on vision but on institutional capacity. South Africa faces serious internal hurdles that have slowed the implementation of JET-P projects. These include:
- Dysfunction within Eskom, the national power utility, plagued by mismanagement and operational inefficiencies.
- Frequent power outages and infrastructure breakdowns.
- Corruption scandals that have eroded public trust in energy governance.
- Complex bureaucratic procedures that delay project approvals.
Germany, for its part, has struggled to navigate these challenges while maintaining pressure for results. The lack of agile coordination mechanisms has also made it harder to respond to changes in global energy markets or domestic policy priorities.
Geopolitical Headwinds
While the climate crisis demands global cooperation, geopolitical realities often intervene. Recent international events—such as the war in Ukraine and energy supply disruptions—have triggered a temporary return to fossil fuels even in Europe. This trend has weakened political will and reduced available funds for climate cooperation abroad.
Simultaneously, new global players, including China and Russia, are increasing their influence in Africa through alternative energy investments, many of which are not aligned with JET-P’s standards for transparency and social justice.
These shifts complicate South Africa’s strategic options. Balancing competing offers while sticking to long-term sustainability principles is becoming an increasingly difficult diplomatic act.
Early Wins and Glimmers of Progress
Despite numerous barriers, the JET-P has already yielded several encouraging developments:
- Pilot renewable energy projects—mainly solar and wind—have been launched in targeted regions.
- New training programs for green energy technicians have begun, particularly focused on youth and former coal workers.
- National conversations around decarbonization have expanded beyond policy elites to include local municipalities and civil society organizations.
- Certain financial institutions have expressed interest in co-funding infrastructure modernization.
While the pace of progress remains slow, these early signs suggest that the model can work—provided the underlying issues are addressed.
Public Sentiment and Political Accountability
South African citizens, especially those in coal regions, remain cautious if not skeptical of the promises of a just energy transition. Years of failed infrastructure plans and political corruption have made public trust a scarce commodity.
If citizens perceive the transition as being driven by foreign interests or disconnected from local realities, opposition could grow. This makes public engagement not just advisable, but essential.
On the German side, political shifts could also impact the partnership. Changes in government, economic pressures, and domestic energy concerns may reduce the political appetite for sustained international climate financing.
Both nations must ensure transparency, consistency, and accountability if the partnership is to maintain legitimacy and momentum.
Unlocking Private Sector Potential
Government-to-government funding alone will not be sufficient. For JET-P to scale successfully, it must unlock significant private investment in:
- Renewable energy infrastructure.
- Storage technologies like batteries and green hydrogen.
- Grid modernization and smart energy systems.
- Local manufacturing of solar panels and wind turbines.
However, for investors to take interest, policy certainty and regulatory stability are crucial. Delays in permitting, shifting regulations, or political interference are major deterrents.
Developing clear market signals, offering risk guarantees, and building public-private partnerships can help bridge this gap and reduce dependency on public funds.
Lessons for Other Countries
The Germany–South Africa JET-P is more than a bilateral agreement. It is a test case for how the international community can support developing nations in decarbonizing while advancing social justice.
If it succeeds, it could inspire similar frameworks in countries like Indonesia, India, and Vietnam. If it fails, it may be cited as evidence that such complex partnerships are politically and economically unviable.
That is why the stakes are so high—and why it’s critical to apply lessons learned in real time.
Rethinking the Funding Model
A recurring theme among critics and experts alike is the need to restructure funding mechanisms. Key suggestions include:
- Shifting a larger share of funds from loans to grants.
- Providing technical assistance alongside capital to enhance local capacity.
- Engaging African development banks as core funding partners.
- Creating incentive structures that prioritize impact over profit.
- Establishing transparent monitoring systems to track project progress and avoid mismanagement.
Unless the funding model becomes more adaptive and equitable, the transition risks stalling at the planning stage.
A Broader Regional Vision
While the current focus is on South Africa, there is growing recognition that energy transformation must be regional, not national. Integrating neighboring countries into grid modernization, cross-border renewables trade, and collective climate financing could expand impact and efficiency.
Germany can play a key role in promoting this broader strategy by working with regional institutions like the Southern African Development Community (SADC) to scale up collaboration.
A regional approach also allows for diversified risk, optimized resource allocation, and a more sustainable long-term model.
For further
To explore a comprehensive analysis of the geopolitical context surrounding the Germany–South Africa energy partnership, see:
Navigating Geopolitical Shifts: The Germany–South Africa Just Energy Transition Partnership (JET‑P)
Conclusion
The Just Energy Transition Partnership between Germany and South Africa embodies both the promise and the complexity of global climate cooperation. It offers a bold vision for how nations can collaborate across borders and interests to confront the climate crisis while safeguarding social equity.
However, for that promise to be realized, the partnership must overcome structural, financial, and political barriers. It must win public trust, attract private capital, and stay flexible amid geopolitical shocks.
More than a project, JET-P is a litmus test: Can the global north support the global south in a way that is effective, fair, and forward-looking?
The answer will depend not only on government action, but on continuous commitment, public accountability, and a willingness to adapt. The world is watching—and what happens in South Africa could chart the course for climate partnerships everywhere.
