Main South Africa Power Union Calls to Suspend Climate Finance Pact

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The main labor union at South Africa’s state power utility called for the suspension of an $8.5 billion climate finance pact with some of the world’s richest nations as well as plans to break up Eskom Holdings SOC Ltd. into separate units.

Under the Just Energy Transition Partnership, South Africa agreed to begin moving away from generating electricity from coal, the dirtiest fossil fuel, to producing more renewable energy using financing from Germany, France, the UK, the US and the European Union. As part of a broader transition plan, which didn’t use funding from the so-called JETP, Eskom last year shuttered its Komati coal-fired power plant, with more closures slated to follow.

“There is a clear lack of consultation with organized labor regarding the unbundling of Eskom, the drafting of the JETIP, as well as decommission of Komati power station,” the NUM said. The JETIP is an acronym for the Just Energy Transition Investment Plan, the completion of which is a necessary step for funding to flow from the rich nations. South Africa has repeatedly delayed its completion.

A report released by South Africa’s Presidential Climate Commission on Friday laid the blame for poor communication and lack of consultation with workers and communities at Komati at the government’s door. It also said Mantashe and Ramokgopa had caused confusion by saying Komati could have been kept open when it had, in fact, reached the end of its operational life.

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