US President Donald Trump signs an executive order on the US withdrawal from WHO (World Health Organization) in the Oval Office of the WHite House in Washington, DC, on January 20, 2025. Picture: Jim WATSON / POOL / AFP
Nicola Mawson
Newly-inaugurated United States President, Donald Trump’s decision to remove that country from the Paris Agreement on climate change will adversely affect global momentum and South Africa’s ability to source funding from the US.
Yet, it also presents an opportunity for South Africa to innovate and become a leader, as the most industrialised country in Africa – setting the tone and pace for Just Energy Transition (JET).
The Minister of Forestry, Fisheries and the Environment, Dr Dion George, has expressed disappointment over Trump’s withdrawal from the Paris Agreement a week ago, soon after he was inaugurated as the 47th President of the world’s largest economy.
“Americans have a pressing moral obligation, not only to lead in reducing emissions, but to support developing economies in contributing to the global effort, and to provide support to poor countries experiencing the impacts of climate change,” said George.
George reiterated South Africa’s commitment to the realisation of the goals set out in the UN Framework Convention on Climate Change and its Paris Agreement.
“We must, and will, seize this moment to innovate and drive forward sustainable solutions. The global effort to curb climate change and address its impacts cannot be put on hold,” he said.
“There is an urgent need for action. We remain hopeful that the momentum of the collective effort to address climate change will only accelerate.”
Dr Okito Wedi, founder and CEO of Crtve Development, told Business Report on Friday that the resolve “feels like a step backwards for global climate cooperation”.
She added that the effects of this move will “definitely be felt here in South Africa”.
Wedi explained that this agreement, signed in 2016 as an international treaty on climate change, was essential to meeting the United Nations’ Sustainable Development Goals (SDGs), especially that of SDG7, which is clean and affordable energy.
“South Africa’s already lagging behind to meet our 2030 commitments,” given the country’s reliance on coal, especially for power,” she said.
Wedi said Trump’s decision would disrupt global funding for countries such as South Africa to move towards JET and affect the rest of Africa and the globe.
She pointed out that South Africa was heavily reliant on international funding, such as the European Union’s $8.5 billion (R156.5bn) towards the country’s transition to green energy.
“Without strong commitments to climate actions, investments like this will become harder and harder to secure in the future, particularly from the private sector, which is crucially important if we're going to close the gap,” said Wedi.
However, she said that not all was lost as South Africa has “massive” renewable energy potential given an abundance of wind and solar opportunities. In addition, said Wedi, South Africa can innovate and grow in this area.
Wedi added that the JET framework was “another incredible opportunity” to showcase what South Africa can do as a global and regional leader on the continent. She pointed to recent developments like easing private energy generations requirements, saying it showed that “we're moving in the right direction”.
What was key for South Africa now, said Wedi, was to diversify funding sources and build partnerships beyond the US.
“We cannot put all our eggs in one basket. I don't think it's going to be an easy path ahead of us, but South Africa has a chance to lead Africa's green revolution with smart and resilient action,” she said.
Crown Prince Adil Nchabeleng, president of Transform RSA and an independent energy expert, said that climate agreements will suffer given the US’ power on the world stage.
BUSINESS REPORT