Is the Just Transition a governance challenge?

This op-ed piece critically evaluates the notion that the Just Transition is primarily a governance issue. It examines the social and economic implications for those most affected, explores key governance indicators such as accountability, trust, and transparency in shaping policy frameworks, and discusses economic impacts including fiscal vulnerabilities and decision-making dynamics influenced by recent financial arrangements like the $8.5 billion loan offered under the Just Energy Transition Partnership at COP26, as discussed by Kumleben (2021).

The piece also considers proposals for internal borrowing strategies to ensure national ownership and sovereignty. Furthermore, it addresses justice and development dimensions of climate governance, emphasising historical policies and geographic considerations for impacted communities, using the Komati Power Plant as a case study illustrating complex socio-economic, environmental, and political challenges in the Just Transition discourse.

Just Transition

The Just Transition refers to nations making a switch from decommissioning coal to using renewable energy. The first issue is that although the switch in theory seems attainable, marginalised communities and coal-mine towns need to be considered first in South Africa’s shift to a more equitable and sustainable economy. Policy-makers need to ensure that those most affected are considered when the shift becomes more apparent. According to reports, South Africa pledged to several countries, including the United States, Britain, France, Germany, and the European Union, for a project called the Just Energy Transition Partnership, which included $8,5 billion in grants and loans over five years (Kumleben, 2021).

However, Lehmann-Grube et al. (2024) mentioned that the loan was met with substantial critique, that the loan included no transparency from the government, while it raised the question of whether only those with the right connections would have access to funding. It was further noted that the deal would need South Africa to abide by the Paris Agreement (2015) of keeping global temperatures to 1,5 degrees Celsius. In terms of governance, the call for South Africa to implement development acts as an indicator of good governance as suggested by the Global North, the only error in this is that South Africa contributes 3,5% of the world’s coal reserves (Nhleko and Inambao, 2020).

Climate governance

Introduced by Dubash (2021) on the topic of climate governance and governments’ readiness to respond to net-zero, the author argues that there has been a heightened interest surrounding domestic climate policies, yet attention to climate positionality among institutions has trailed. This was addressed in the Paris Agreement (NDC, 2021) with focus on the role of national climate governance institutions and its role in necessitating global cooperation. The goals introduced during the agreement included aligning emission targets with those globally accepted by domestic development goals, as well as the generation of Nationally Determined Contribution (NDC).

“Countries do not start with a black state when designing climate institutions” (Dubash, 2021, p.4). In addition, the author elaborates on how domestic institutions collectively influence political concepts and adopt a historical institutionalist approach. Taken from a system-thinking approach, this can be adapted as examining the relationships between politics and institutions forming an iterative process in examining the complex challenges of climate governance.

In a South African context, the Paris Agreement (NDC, 2021) introduced by the Global North offers a paradigmatic shift to the Global South, reviewing the Global South’s indicators for development. This intrinsically lends to the ideology of good governance, as decommissioning coal to renewable energy is seen as a form of development in governance, as indicated by the World Bank. The foundation of the Just Transition ensures that communities, workers, and industries are fundamentally supported, while the argument as introduced by Lekunza (2024) highlights that the Just Transition is a governance issue.

Komati Power Station

The Komati Power Station, commissioned in 1961, consisted of nine coal-fired generators with a total installed capacity of 1 GW in 1966. The plant was not operational between the 1980s and 2000s, while it was recommissioned in 2012 by Eskom. By 2017, Eskom decommissioned the plant resulting in the loss of 1586 workers (PCC, 2022). Moreover, between 2018 and 2022, the remaining generators were removed, and by 2019, the plant was introduced to the 2019 Integrated Resources Plan. The PCC (2022) noted that Eskom secured a $497 million loan from the World Bank in 2022 to support the decommissioning, repurposing, and repowering of the power station.

The PCC conducted an internal public participation at the power station and the Komati Village on the 7th of July 2023, while the report was delivered to President Cyril Ramaphosa in November of the same year. Findings from the PCC revealed that the Komati project’s implementation was “narrow”, neglecting broader community impacts. Participatory engagements were not inclusive and felt short of procedural justice. TIPS (2021) attributed the success of the Just Transition to procedural justice, highlighting that those involved in deliberations and recommendations are required in participatory change.

Conclusion

In conclusion, the PCC's nine-month investigation and consultation revealed a lack of consensus on the Just Transition in South Africa, underscoring the absence of a clear policy framework. Poor governance by the government has resulted in disjointed communication and coordination among social partners and stakeholders regarding the Just Transition. Moving from coal to renewable energy requires the government to actively engage communities, stakeholders, and organisations, rather than assuming their unanimous support.

This inclusive approach would foster transparency, accountability, and trust—essential components of good governance. The overarching concern is that without trust, communities may perceive government actions as exploitative rather than beneficial, exacerbating distrust and hindering effective collaboration. The process of policymaking, decision-making, public participation, and resource allocation underscores that the Just Transition is fundamentally a governance issue.