Tag: energy transition

South Africa takes on the presidency of the Group of 20 (G20) in 2025 with six headline priorities. These include debt sustainability for low-income countries, mobilising finance for a just energy transition, food security, disaster resilience and digital infrastructure. Among these, payment reform is the one that businesses in the country will feel most directly.

Although many manufacturing and industrial companies set objectives to reduce fossil fuel use, no silver bullets exist in the green fuel space. Supply and logistics constraints, high costs and technological limitations present challenges. Manufacturing companies can implement the green energy transition by investigating more sustainable and lower-carbon fuel alternatives.

As South Africa assumes the presidency of the Global Group of 20 (G20) in December, it faces significant opportunities. The country is set to lead global discussions on sustainable energy and economic development for the Global South. "Just energy transition" and financing solutions for economic growth are the top priorities on South Africa’s G20 agenda. This highlights the need for innovative, resilient, and green technology solutions.

Africa is making slow, steady progress towards energy security, which will only be enhanced through collaboration. Energy access is undeniably one of the most crucial components of modern day living. Reliable energy supply ensures that economies are growing by supporting critical industries like mining, manufacturing, agriculture, healthcare and education, while improving the lives of billions of people.

The shifting landscape of the energy sector towards sustainability and efficiency will have implications for workforce and skills development, with organisations needing to explore how to navigate this transition effectively. South Africa’s draft Integrated Resources Plan (IRP) for the energy sector introduces new energy sources such as nuclear, gas and hydrogen into the mix, which calls for proactive measures to be taken to prepare workforces for these incoming technologies.

While South Africa has enjoyed an extended respite from load shedding this year, there are other compelling reasons to accelerate the transition to renewable energy. One of the reasons are that businesses and homeowners are concerned about Eskom’s reported intention of seeking a 36% increase in tariffs in 2025 - on the back of electricity prices that have roughly tripled over the past 14 years.

As South Africa’s energy sector continues to evolve, understanding the changes in regulations, contracts, and market dynamics is crucial. The restructuring of South Africa’s regulatory framework, especially within the energy sector is critical given the present crisis the country is in. Unbundling, where different parts of the energy sector are separated, amounts to far more than just paperwork.

While there is a growing need for renewable energy as countries around the globe seek to reduce their dependency on fossil fuels, the potential drawbacks that come with this transition cannot be ignored. In the realm of utility environments, which encompasses municipalities and renewable energy providers such as Independent Power Producers (IPPs), due consideration must be given to the critical area of power quality.

Although decarbonising an investment portfolio is a multi-faceted, multi-stage exercise, it needn’t be complicated. Adding the dimension of sustainability – in this case, decarbonisation – to your portfolio construction process does not mean changing your approach entirely.

Mining is a historically linear process – we take materials from the earth, make products from them and eventually throw them away as waste. With the intensification of climate change, environmental degradation, pollution – all products of linear economies – the mining industry needs to transition to a circular economy.