The South African government has announced a further delay of two to three months in finalizing its energy transition implementation plan, causing a setback in accessing funds from an $8.5 billion climate finance agreement with major global economies. This delay is attributed to the need for more comprehensive planning regarding the re-skilling of workers from coal-dependent communities, as coal-fired plants are gradually phased out.

Joanne Yawitch, the head of the project management unit overseeing the pact within the South African presidency, highlighted that additional complexities arose due to the government's decision to limit state utility Eskom Holdings SOC Ltd.'s ability to acquire more loans and government debt guarantees. These limitations have affected the investment plan originally devised for the transition.

France, Germany, the US, UK, and the European Union collectively offered the finance to support South Africa's shift away from coal, which currently supplies over 80% of the nation's power. However, the initiative, known as the Just Energy Transition Partnership, has encountered challenges like political conflicts and lobbying from coal-related businesses.

The Presidential Climate Commission, which has been working on the transition plan, recommended the appointment of the government's Development Bank of Southern Africa (DBSA) to manage the Just Transition Financing Mechanism. Under this mechanism, the DBSA would oversee the distribution of funds to projects related to the energy transition.

Initially, the commission estimated that around R1.5 trillion over five years would be required to initiate the process of transitioning South Africa's economy away from coal.