Just Energy Transition must balance economic priorities and decarbonisation

Thursday, July 23, 2026

Mineral and Petroleum Resources Minister Gwede Mantashe has emphasised that South Africa must define its own just energy transition on its own terms, prioritising economic survival, energy security and poverty reduction.

The Minister delivered an address at the 8th edition of the Coal and Energy Transition Day held in Johannesburg.

“For many years, the global energy transition debate has been shaped by complex geopolitical considerations, where developed nations often seek to prescribe the pace and scale of transition for developing nations. Such a one-size-fits-all approach is neither practical nor equitable.

“The conversation is too often reduced to a choice between coal and renewable energy. That is the wrong debate.

“The real debate should be about how we transition from high-carbon emissions to low-carbon emissions while maintaining energy security, industrial competitiveness, and economic growth,” Mantashe asserted.

He added that ecology and the economy are not mutually exclusive.

“Environmental sustainability and economic development must reinforce one another. Sustainable development cannot exist where millions remain unemployed, without electricity, or trapped in poverty,” the minister noted.

A pillar of the economy

Mantashe highlighted that for South Africa, coal remains a foundational pillar for both industry and grid stability.

He highlighted that abroad, International Energy Agency research indicates that global coal demand increased by 1.5% in 2024 while production grew by 1.4%.

“These figures demonstrate that while many talk of moving away from coal, the world continues to depend on coal to power economies and industries.

“Here at home, coal remains one of the pillars of our economy. It supports thousands of direct and indirect jobs, generates valuable export earnings, underpins industrial activity, and continues to provide the bulk of South Africa’s electricity supply,” Mantashe said.

Furthermore, the department’s study on the state of mining indicates that “at current production rates, our coal reserves could sustain the country for the next 200 years”.

“It is for this reason that our Critical Minerals and Metals Strategy recognises coal as a critical mineral capable of supporting inclusive economic growth, employment creation, and poverty eradication.

“While some continue to argue that coal has no future, we recognise the substantial progress that has already been made. More importantly, we recognise the enormous opportunity to leverage our coal resources to drive inclusive development for generations to come.

“Equally encouraging is the transformation that has taken place within the sector itself. After decades of coal mining, the coal sector is today largely black-owned and black-managed. This demonstrates that mining remains one of the fastest-transforming sectors of our economy,” he added.

Turning to the absence load shedding, the Minister insisted that this is as a result of “deliberate investment by Eskom to improve the Energy Availability Factor of its power stations, the majority of which continue to be powered by coal”.

“This reality reminds us that South Africa’s energy transition must be responsible, carefully managed and firmly grounded in energy security.

“At the same time, we are fully aware that coal combustion produces carbon emissions. For that reason, government continues to invest in technologies and programmes that reduce emissions while extending the responsible use of coal,” he said.

The Carbon Capture, Utilisation and Storage Pilot Project at Leandra in Mpumalanga.

“The project is now positioned to enter the pilot-scale injection phase, where it will validate geological storage potential, generate critical scientific evidence to support future regulatory frameworks, and demonstrate the commercial viability of CCUS technologies in South Africa.

“Equally exciting is the Coal Reimagined Programme being led by Mintek. Through this initiative, South Africa is not simply recycling historical waste. We are unlocking new economic opportunities, strengthening our resource sovereignty and positioning ourselves as an important participant in the global critical mineral value chains,” Mantashe said. – SAnews.gov.za