G20 Summit: Expert calls for just energy transition to protect coal-dependent regions
South Africa Hosts Historic G20: Expert Calls for Clean Energy Funding Must Benefit Local Communities
Image: GCIS
As the G20 summit continues in Johannesburg, international relations analyst Dr Oscar van Heerden emphasised the critical need for G20 funding commitments to support sustainable energy transitions that directly benefit communities reliant on coal, particularly in developing countries.
The G20 leaders pledged ambitious targets, including tripling global renewable energy capacity and doubling the annual rate of energy efficiency improvements by 2030.
They also underscored “the crucial role of technologically neutral, integrated, and inclusive approaches to energy security and energy transitions,” while committing to “catalysed, scaled-up investment from all relevant financial sources and channels” to bridge the broad funding gap in clean energy.
On Saturday, the summit communiqué highlighted facilitating low-cost financing mechanisms - such as concessional finance, innovative blended finance, and risk mitigation instruments - aimed at accelerating the sustainable energy transition globally.
Welcoming the commitments, Van Heerden urged that funding must be structured to ease financial burdens on affected coal-reliant communities.
“We need financing that does not have such a high servicing cost. If financing is better structured, it means more money flows directly to governments, like South Africa’s, to support essential public services such as healthcare,” he said.
“Communities in Mpumalanga, including Nkomati, rely heavily on coal - if those coal plants shut down without adequate support, people will suffer. The funds must be oriented toward introducing new technologies and economic opportunities in these areas.”
Van Heerden also highlighted the continent’s strategic role in the extraction of critical minerals, noting that nearly 30% of minerals mined in Africa are processed elsewhere and stressing the need for a united approach to beneficiation.
“The days of extracting minerals like platinum or resources from the DRC for technology abroad are numbered if we don’t speak with one voice. If we don’t ensure beneficiation on the continent, ordinary African youth will not benefit from these resources.”
The G20 leaders, recognising the growing demand for critical minerals, acknowledged the challenges faced by producer countries, including underinvestment and limited value addition.
They welcomed the new G20 Critical Minerals Framework as a “voluntary, non-binding blueprint” to make mineral resources drivers of “prosperity and sustainable development.”
Beyond policy, Van Heerden praised South Africa’s hospitality during its historic G20 presidency - the first ever hosted on African soil.
“The spirit of ubuntu - ‘I am because you are’ - was on full display this weekend as the world descended on South Africa. From the moment our guests arrived, the warmth and generosity of our people were evident."
“This summit was not only a government effort but a collective showcase of Africa’s hospitality, professionalism, and openness to partners worldwide.”
As the G20 leaders continued their meetings, Van Heerden stated that South Africa’s successful hosting highlighted its emerging role as a pivotal player in global multilateralism and climate diplomacy, with a clear message that funding for just clean energy transitions must reach and uplift vulnerable communities long dependent on coal.
thabo.makwakwa@inl.co.za
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