Life After Coal | Impilo Ngaphandle Kwamalahle

Financing the transition – and not financing coal and other fossil fuels

Public money as well as private capital continue to sustain the fossil fuel-based energy system that has led to the climate crisis. This is unjust, unsustainable and – in the case of public finance – misaligned with global and national commitments. Instead, the focus should be on financing the transition.

We call for urgent change in the financing of energy systems:

1. There is no new finance of or investment in fossil fuel-based energy systems, projects and companies, including coal, oil and gas. A complete shift in equity and debt financing, away from fossil fuels and its supporting infrastructure (railways and pipelines), and towards renewable energy;
2. An end of subsidies, and other financial and non-financial incentives that support the production and consumption of fossil fuels. Re-orient subsidies and incentives in favour of clean, renewable energy sources;
3. Those controlling money, both private and public, make decisions that further the Just Transition;
4. Financing supports urgent action to prevent climate change, supports adaptation and reduces inequality;
5. Public and private financing is transparent;
6. Public funding takes the lead in pushing towards JT;
7. Public funding goes to projects that provide significant job opportunities;
8. No public funds are wasted on fossil fuel projects;
9. Rehabilitation funds for mines held by DMRE are used for job-intensive rehabilitation;
10. The voices of women and youth are heard and decisions about public funding reflect their views;
11. Carbon majors and polluting industry are accountable and transparent, including compliance with obligations to reduce emissions;
12. Investment in RE includes creating a manufacturing, construction and a maintenance chain with ample job opportunities;
13. All fossil fuel subsidies are redirected to JT and climate response; and
14. Carbon tax is fully implemented at an appropriate tax rate. Funds received from carbon tax or other penalties levelled against the fossil fuel sector are ring-fenced and put towards the just transition, climate crisis resilience, adaptation and compensation.