South Africa is preparing to update its Nationally Determined Contribution (NDC) targets for 2030–2035 as part of its commitments under the Paris Agreement. To support this process, the Presidential Climate Commission (PCC) convened a series of stakeholder consultations to ensure the revised NDC reflects a just, inclusive, and ambitious climate agenda.
This presentation was prepared by Joan Stott of the Institute for Economic Justice (IEJ) and presented by Basani Baloyi during the Organised Labour Consultation on 5 March 2025. The session focused on the role of workers and trade unions in advancing a just transition, with particular emphasis on labour rights, worker protections, job creation, and financing mechanisms that place workers, communities, and long-term development at the centre of South Africa’s climate response.
Rethinking climate finance
The document critiques the current global climate finance architecture and South Africa’s macroeconomic policy framework, arguing that fiscal, monetary, and industrial policy conservatism constrains investment in climate action. It calls for a progressive macroeconomic approach that mobilises domestic resources and directs investment towards industrial development, decarbonisation, and social inclusion.
Financing a worker-centred transition
A central recommendation is expanding the role of development finance institutions (DFIs) and strengthening collaboration between public financial institutions. The paper proposes recapitalising institutions such as the Industrial Development Corporation (IDC), reforming their governance, and aligning investment decisions with a Green Finance Taxonomy. It also explores new financing sources, including carbon taxes, fuel levies, resource royalties, retirement savings reforms, and greater use of public banking to support climate priorities.
Strengthening public institutions
The document advocates restructuring the IDC to provide longer-term concessional finance, increased grant funding, lower risk thresholds, and governance that includes workers, civil society, government, and the private sector. Pension funds are identified as a significant source of domestic capital that could support green infrastructure and productive investment through carefully designed policy reforms.
Conclusion
The paper concludes that achieving a just transition requires more than climate finance alone. It calls for a coordinated public finance strategy that combines macroeconomic reform, stronger development finance institutions, democratic governance, and worker-centred industrial policy. By mobilising domestic resources and prioritising social justice, South Africa can build a low-carbon economy that delivers decent work, inclusive growth, and long-term resilience.
Watch the recording of the presentation by Basani Baloyi below,