South Africa is poised to lead a global push for inclusive climate finance and sustainable development as it takes over the G20 presidency, President Cyril Ramaphosa announced, stressing the need for greater support for developing countries transitioning to a low-carbon economy.

Speaking at the G20 finance ministers and central bankers’ meeting in Cape Town, Ramaphosa highlighted the opportunity to bridge the climate financing gap and ensure that emerging economies receive their fair share of global funds for clean energy and resilience.

"We continue to advocate for greater concessional and grant funding to support the energy transition in developing economies," he stated, underscoring the importance of equitable funding to meet the goals of the Paris Agreement.

Despite challenges, South Africa has already taken significant steps to pioneer climate action through its Just Energy Transition Partnership (JETP), an initiative that unites governments, multilateral lenders, and the private sector to accelerate the shift from coal to renewable energy in a way that benefits local communities. Similar partnerships in Indonesia and Vietnam demonstrate the potential for transformative change.

With climate impacts intensifying globally, South Africa plans to use its G20 presidency to champion ambitious climate action ahead of this year’s U.N. climate summit in Brazil. 

It will also call for stronger measures to protect the world’s most vulnerable nations from the devastating effects of droughts, floods, and other extreme weather events.

A key element of South Africa's strategy is to leverage the country's abundant critical minerals essential for renewable technologies and energy storage to drive economic growth and decarbonization. 

Although Africa holds 30% of the world’s critical mineral reserves, it receives only 3% of global energy investments.

“As minerals extraction accelerates to match the needs of the energy transition, the countries and local communities endowed with these resources must be the ones to benefit the most," Ramaphosa said, emphasizing the need for fair trade and value addition in the sector.

South Africa's G20 presidency presents a unique opportunity to redefine climate financing, promote sustainable development, and ensure that the transition to a green economy benefits all, especially the countries that have contributed least to climate change but face its severe impacts.