The B20 South Africa task force on energy has unveiled three recommendations that will be presented to the G20 government leaders when they gather for their yearly meeting in Johannesburg in November.

The recommendations include mobilising energy transition finance at greater scale and speed, supporting industrialisation across the energy value chain, and unlocking investment in critical energy infrastructure.

In an interview with Engineering News, B20 South Africa energy mix and just transition task force chairperson Daniel Mminele, who is also Nedbank chairperson, underlined the importance of transition funding, arguing that it all “begins with financing”.

The task force report, which was overseen by Mminele together with 12 co-chairs drawn from leading African and international energy, finance, industrial and advisory companies, specifically called for international financing for just energy transitions to be expanded by more than seven times by 2040, from $45-billion to $330-billion.

“Emerging economies continue to face steep borrowing costs and limited access to capital for energy transition projects.

“What is needed now is a shift toward financial models that are scalable, affordable, and aligned with national priorities,” he said, while also stressing that the B20 agreed that there could be no one-size-fits-all approach to national transitions.

Mminele also highlighted the view taken by B20 South Africa that the transition presented an opportunity to expand industrial capacity, with the task force arguing that the global value unlocked through industrialisation across sustainable energy value chains should be grown by five times to $11-trillion by 2040.

Having previously overseen the crafting of South Africa’s Just Energy Transition Investment Plan, Mminele said the recommendation gelled with South Africa’s own vision to expand green industries, while also supporting skills development to cushion workers and communities affected by the shift away from coal.

Notwithstanding the rise of protectionism – particularly out of the US, which will take over the G20 Presidency from South Africa at the end of the year – the task force report also recommended that resilient energy-sector supply chains could be built through improved market integration and enhanced trade partnerships.

The report also emphasised the need for an expansion and modernisation of energy infrastructure to increase access to reliable electricity and enhance the climate resilience of energy infrastructure.

Specifically, it argued that yearly investments into grid infrastructure should be doubled over the coming five to 25 years to $780-billion and that 80-million kilometres of grid infrastructure be modernised and/or installed by 2040.

The energy mix and just transition reports was one of eight reports, containing 30 recommendations in total, handed over by B20 South Africa Sherpa Cas Coovadia to International Relations and Cooperation Minister Ronald Lamola on September 4.

The others deal with digital transformation, employment and education, finance and infrastructure, industrial transformation and innovation, integrity and compliance, sustainable food systems and agriculture, and trade and investment.

In the lead-up to the G20 Summit in November, which will be the first gathering of its kind in Africa, B20 South Africa plans to engage with governments, multilateral institutions and business leaders to build momentum around the recommendations.

"This is Africa’s global moment," Coovadia said. "We invite the world to engage with these recommendations, collaborate with us and join us in leading change."