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South Africa’s abundant natural resources provide it with the opportunity to become a global leader in renewable energy and green hydrogen production. Its unique geography, astride major shipping lanes connecting Asia with the western hemisphere, positions it as an ideal hub for producing, bunkering and exporting zeroemission shipping fuels.

These global opportunities could power the country away from fossil fuels, transform the nation’s economy, create employment opportunities in new sectors and improve the lives of its people. Decarbonizing energy production is a climate imperative for the planet and South Africa’s contribution is enshrined in its commitment to reach net zero by 2050. It would deliver the secure, reliable and affordable electricity supply that the country urgently needs. Last year, loadshedding broke new records, affecting all levels of society and industry. A clean energy and industrial mix would also protect South Africa from the near-term risk to its export economy posed by the carbon taxes of its largest trading partners.

Looking to the future, an economy based on renewables and green hydrogen could provide the foundation for the country to produce and export zero-carbon molecules such as clean ammonia and methanol, essential for decarbonizing global transportation and heavy industrial processes. This transition could add close to 6% in GDP and 2 million new jobs, in a country where tackling unsustainable levels of joblessness, poverty and inequality dominate political discourse. These opportunities featured prominently in presentations and discussions during a three-day workshop organized by the First Movers Coalition in Cape Town in March 2024, which attracted 70 participants from a wide range of public and private sector organizations. The coalition combined shipping and trucking into one workshop to spark cross-sector insights and highlight synergies – given that both sectors face similar challenges and enablers around financing, infrastructure and competitiveness.

There are encouraging signs of progress. The government has enacted climate-forward policies aimed at decarbonizing transport, commercializing green hydrogen and developing the value chain for renewable energy. It has framed an investment plan for the just energy transition, targeting a budget of nearly ZAR 1.5 trillion. The World Bank has completed pre-feasibility studies into several major green hydrogen projects. Workshop participants agreed that combining forces across shipping and trucking could strengthen the demand and supply signals for the zero-emission technologies that hold the key to decarbonizing both sectors.

The transition of South Africa’s energy and transportation sectors is not in the hands of its government alone. The private sector, multilateral development banks and industrialized countries all have critical roles to play – to aggregate demand for low-carbon solutions and de-risk the finance needed for huge investments in new infrastructure. It will take the collaboration of all these actors to connect global demand and financial resources with a domestic pipeline of projects ready to deliver the future fuels that South Africa is so well-poised to produce.