South Africa

Last updated: October 2026

The country is one of the priority countries with which the International Climate Initiative (IKI) maintains a particularly close cooperation.

A picturesque landscape with green bushes, yellow flowers, and large rocks under a clear blue sky.

South Africa has one of the most carbon-intensive economies in the world, since the country is dependent on fossil fuels in the electricity, industry and transport sectors. Coal amounts to approximately 75 percent of primary energy, which is equivalent to about 83 percent of electricity production. At the same time, the share of renewable energies has grown significantly in recent years.

The industrial sectors of the country, including the mining, metal and automotive industries, have developed alongside the fossil energy sector, leading to complex mutual dependencies.

The energy supply is predominantly based on old coal-fired power plants and despite various measures, it is still vulnerable. In the past, entire parts of the city had to be taken off the power grid for several hours to prevent the grid from collapsing completely. This measure is referred to as “loadshedding”. The consequences for the population and for economy as a whole were tremendous. Since 2025, however, various measures have led to a dramatic improvement in the situation.

South Africa nevertheless faces the major challenge of ensuring that the expansion of additional electricity generation capacity is renewable and sustainable, whilst at the same time developing a political strategy that takes into account both economic growth and the country’s climate and development goals.

In the May 2024 election, the African National Congress (ANC), Nelson Mandela’s party, failed to secure an absolute majority for the first time since the end of apartheid. A Government of National Unity (GNU) comprising ten parties was subsequently formed. Cooperation between different political forces has opened up new opportunities for reform, but it also presents challenges, particularly in the areas of energy, climate action and biodiversity.

In 2025, South Africa submitted its second Nationally Determined Contribution (NDC). It sets out new targets for limiting greenhouse gas emissions by 2035 and identifies priorities for climate change adaptation. It also provides for communities affected by climate action and the transition to low-emission development to benefit from the far-reaching transformation. A key challenge will be to translate the agreed targets into concrete measures at local level while reconciling climate action, economic development and social justice.

To achieve its climate targets, South Africa introduced the Climate Change Act in July 2024, which came into force in March 2025. The Act is primarily intended to promote an integrated and coordinated approach across all levels of government, support a national greenhouse gas emissions trajectory towards a low-emission economy, and establish national adaptation objectives. It also formally recognises the Presidential Climate Commission (PCC) as an official body. Implementation is being phased in: further regulations still need to be developed for certain provisions, including those relating to carbon budgets for major emitters and climate change adaptation.

One of the greatest challenges in adapting to climate change is the country’s ongoing water crisis. Increasing supply disruptions and shortcomings in municipal water infrastructure prompted the government to present a National Water Action Plan in July 2026. The plan aims to encourage infrastructure investment, improve municipal water supply and address structural problems in the water sector.

South Africa is a signatory to the Convention on Biological Diversity (CBD). The revised National Biodiversity Strategy and Action Plan (NBSAP) for the period 2026–2035 is currently undergoing a consultation process. It is intended to translate international biodiversity targets into concrete national measures.
The Just Energy Transition Partnership with South Africa
The priority of the country's climate policy is to drive forward a socially just structural change (just transition) in all sectors. At the 2021 World Climate Conference (COP26), South Africa initiated a long-term Just Energy Transition Partnership (JETP) with France, the European Union, the United Kingdom, the United States and Germany. The international partner countries are supporting the JETP in South Africa with more than 8.5 billion US dollars for the period 2023 to 2027. Germany's initial contribution of 968 million US dollars is based on its long-term cooperation with South Africa. The sectors to be initially invested in have been identified as the energy, transport and green hydrogen industries.

The IKI supports this process with the following projects:

Just Transition to a Decarbonised Economy for South Africa (JUST SA)

Support and financing for a low-carbon socially-just transition in South Africa (JTFM)

Accelerating implementation of South Africa’s Just Energy Transition Investment Plan (JET IP)
The work of the IKI in South Africa focuses on climate change mitigation and the “Just Energy Transition”. The IKI is also active in the areas of biodiversity, adaptation to climate change and the conservation of forests. In bilateral cooperation, there are currently ongoing projects on Just Energy Transition, decarbonisation of industry and landscape restoration.

As part of the IKI Large Grants Call, there was a country priority on South Africa in 2025: ‘Climate-Smart conservation and restoration of South Africa’s grassland landscapes and associated wetland ecosystems, to support long-term biodiversity protection and green economic development’

The projects are currently in the planning phase.

Interface project

All priority countries of the IKI also engage in so-called IKI interface projects, which have permanent project offices in the capital city of the respective country. Alongside their own, country-specific project commission, these interface projects are also tasked with maintaining close contact to environment and climate ministries as well as networking with other relevant ministries in the field of climate and biodiversity policy. Beyond this, the interface projects also work to network all of the IKI projects in the country and region together so as to promote synergies.

In South Africa, the interface function is currently represented by the project Climate Support Programme IV.

Project priorities

Support of the DFFE in the implementation of national climate goals in the areas of climate change mitigation, adaptation to climate change and transparency, as well as consultation on the integration of the biodiversity aspect;
Promotion of innovative financing streams;
Support for the preparation of projects (climate action and biodiversity conservation);
Function as an IKI interface: Promotion of dialogue on climate and biodiversity between the IKI projects in the country as well as between other actors (networking opportunities and knowledge management).

Project contact

iki.interface.southafrica(at)giz.de

Twitter: @IKI_SouthAfrica

IKI South Africa: website of all IKI projects in the country

Climate Support Programme IV

Insights into the project work

All projects in the country

In a nutshell

Region: Southern Africa

Population: 64.7 million (World Bank, 2025)

CO₂eq emissions (incl. LULUCF): 383.3 million t (ClimateWatch, 2023)

CO₂eq emissions per capita (incl. LULUCF): 6,1 t (ClimateWatch, 2023)

Total energy supply (IEA, 2023):

69 % Coal
3 % Gas
0.2 % Hydro
2 % Nuclear
2 % Wind, Solar etc.
4 % Biofuels / Waste
21 % Oil
11 % RE in electricity mix (5 % Wind, 2 % PV)

IKI projects in the country (last updated in October 2026):

bilateral: 12 ongoing, 14 completed
regional: 5 ongoing, 7 completed
global: 20 ongoing, 50 completed

ClimateWatch

NDC partnership: country page

IKI partner ministries:

Department of Forestry, Fisheries and the Environment (DFFE)
Department of Energy (DEE)
Department of Public Works and Infrastructure (DPWI)
Department for Water and Sanitation (DWS)
Department of Trade, Industry and Competition (DTIC)
Department of Planning and Monitoring (DPME)

Video

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South Africa: Gregor Schmorl on the role of the IKI in a just transition

The IKI Strategy

The IKI wants to maximise its impact on climate action and biodiversity conservation. To this end, it concentrates its funding activities on prioritised fields of action within the four funding areas. Another key element is the close cooperation with selected partner countries, especially with the IKI’s priority countries.

Click here for the IKI Strategy