Leanne Emery-Hunter | CEO | Tshikululu Social Investments | mail me |
When people discuss the Just Energy Transition (JET), they often focus on gigawatts, emissions targets, and investment flows. However, the Just Transition is not only about energy. At its core, it is about people and building a socially inclusive future.
The decisions made in the next decade will shape the country’s trajectory. These choices will determine whether the transition deepens inequality or creates opportunities. More importantly, they will determine whether South Africa moves toward a socially inclusive future that addresses unemployment, poverty and exclusion.
Climate urgency and the national transition
The urgency of the climate crisis is undeniable. Global average temperatures have already risen by about 1.1°C above pre-industrial levels. The Paris Agreement commits countries to limiting global warming to 1.5°C. This goal requires global net-zero emissions by mid-century.
South Africa is the 15th-largest emitter globally because the country still depends heavily on coal. In 2024, coal generated 82% of the country’s energy.
South Africa’s Nationally Determined Contribution commits the country to peak emissions between 2025 and 2030. It also targets net-zero emissions by 2050. Therefore, the energy transition is essential. However, it must also support a socially inclusive future rather than worsen existing inequalities.
Social realities shaping the transition
In South Africa, climate action cannot be separated from social realities. The mining sector contributed about 6% of the country’s GDP in 2024. This contribution equals more than R450 billion.
At the same time, unemployment remains severe. One in two young people in South Africa is out of work. Young women face especially high unemployment rates.
Without careful planning, the energy transition could trigger mass job losses. It could also deepen marginalisation and create social instability. However, a well-designed transition could reduce unemployment. It could also expand opportunities for women and youth while addressing energy poverty.
Globally, the clean energy transition could create 10.3 million net new jobs by 2030. However, this outcome will occur only if countries invest in reskilling, inclusion, social protection and regionally tailored policies that promote a socially inclusive future.
Inclusive skills development in practice
Several initiatives already demonstrate how inclusive skills development can support the transition.
The United Nations Development Programme JET Skills Programme provides one such example. By mid-2025, nearly 200 students in Mpumalanga and Limpopo had graduated from the Energy Efficiency Skills Programme (EESP).
The first group consisted mainly of women from rural communities. These students learned to install, repair, and maintain solar photovoltaic systems. The second group trained as Energy Performance Practitioners who audit and improve building energy efficiency.
Most graduates are women. This outcome reflects a deliberate effort to increase female representation in technical roles within the green economy. In doing so, the programme supports progress toward a socially inclusive future.
Another example comes from the African Women in Energy and Power Just Energy Transition Skills Development Programme. This initiative supports women in the energy and power sector. The programme enables participants to drive JET initiatives at the local level. It also stimulates micro-economies and increases market access for companies owned by women, youth and people with disabilities.
Ultimately, the programme aims to ensure that these groups lead community-based solutions that contribute to the energy transition.
The economic value of women’s participation
Investing in women delivers benefits that extend beyond gender equity. Research supports this conclusion.
For example, a 2021 study by the Bank for International Settlements found a strong relationship between leadership diversity and environmental outcomes. The study showed that each one-percentage-point increase in women in managerial roles corresponds with a 0.5% reduction in CO₂ emissions. This finding highlights how inclusive leadership can strengthen both environmental performance and a socially inclusive future.
Financing the Just Energy Transition
South Africa’s JET Investment Plan requires significant funding. Estimates place the required investment at R1.5 trillion over five years.
By mid-2025, investors had pledged about R230 billion. However, a large funding gap remains. Therefore, the key question concerns not only whether capital will flow. It also concerns whether investment will flow inclusively to generate social impact.
We participated in South Africa’s JET initiative led by the Presidency. The organisation provided technical support services to the JET Funding Platform.
The platform launched in 2024. It enables projects and donors across the country to register and connect through funding partnerships. Two rounds of project matching have already taken place. These efforts help bridge the gap between funders and JET-aligned initiatives that support a socially inclusive future.
Global models of blended finance
Globally, innovative financing models are emerging. Blended finance brings multiple funders together to support large-scale projects with strong social impact.
One example is the Global Energy Alliance for People and Planet. This coalition manages a $10-billion fund. The alliance was launched through partnerships between the Rockefeller Foundation, the IKEA Foundation and the Bezos Earth Fund.
The initiative invests in clean energy projects across developing economies. It demonstrates how blended finance can unlock large-scale impact while prioritising equity and climate action.
Collaboration for an inclusive transition
South Africa has a long history of social investment. The country also has a sophisticated financial sector. Together, these strengths create an opportunity to lead globally in inclusive transition finance.
Financial innovation can decarbonise infrastructure. At the same time, it can fund reskilling, social inclusion, and community resilience. However, the Just Transition is not only a technical project. It also represents a social contract.
To succeed, it requires unprecedented collaboration. Government, business, labour and communities must work together.
For example, our organisation focuses on enabling partnerships and investments. These initiatives build skills pipelines for youth, support women-owned enterprises and empower youth-led businesses. We also ensure vulnerable communities participate in shaping a socially inclusive future.
A once-in-a-generation opportunity
The Just Energy Transition represents a once-in-a-generation opportunity. It offers a chance to transform systems that perpetuate exclusion.
If policymakers reduce the transition to a narrow energy issue, the effort may fail. However, if leaders recognise both its energy and social dimensions, the outcome could be transformative.
By embracing this broader vision, South Africa can build a future that is cleaner, fairer and closer to a socially inclusive future for all.
