SA needs R2.3trn for green transition, McKinsey says

Transitioning South Africa’s coal-dependent economy to green energy could cost R2.3 trillion by 2050, McKinsey & Co. said.

Such a shift would see coal accounting for just 4% of the country’s energy generation, down from more than 80% currently, wind and solar providing two thirds and the rest coming mainly from hydrogen and storage, the consultancy said in a report on Friday. A net 65 000 jobs could be created.

The potential expenditure is part of the costs the African continent will face if it is to play its part in mitigating the effects of climate change, McKinsey said. As many as 900 million Africans could be exposed to climate hazards by 2050 if the average global temperature rises by 2 degrees celsius (3.6 degrees Fahrenheit), it said.

Still, if sufficient capital is invested in making the continent’s economies more climate friendly a $35 billion-per-annum hydrogen and carbon credit export industry could be developed by 2050 and 800 000 jobs could be created in green industries by 2030, it said.