Narend Singh Calls for Climate Finance to Support Just Transition

The Deputy Minister argued that climate action in developing countries must go beyond cutting greenhouse gas emissions.

South Africa's Deputy Minister of Forestry, Fisheries and the Environment, Narend Singh, has called for stronger international support to help developing countries finance their transition to low-carbon and climate-resilient economies. Addressing delegates virtually at the Inclusive Forum on Carbon Mitigation Approaches (IFCMA), Singh said affordable finance remains one of the biggest challenges facing nations that are trying to balance economic growth, climate action and social development. He said many developing countries are under growing financial pressure as rising debt-servicing costs limit their ability to invest in climate programmes. At the same time, governments are navigating an increasingly uncertain global environment shaped by geopolitical tensions, changing trade patterns and economic instability, making it more difficult to implement ambitious climate policies. Singh stressed that international cooperation and accessible climate funding will be essential if developing economies are to meet their emissions targets while protecting jobs, industries and vulnerable communities.

Global economic pressures are reshaping climate action

Speaking to the international forum, the Deputy Minister said countries are increasingly being forced to adjust their climate mitigation strategies as they respond to competing national priorities such as energy security, industrial competitiveness and economic resilience. He explained that geopolitical tensions, disruptions in international trade and uncertainty in global investment flows are creating new challenges for governments trying to reduce greenhouse gas emissions. As countries adopt different policy responses to these pressures, the global economy could experience wider effects on trade, investment, technology transfer and industrial development.

Singh warned that policy decisions taken by one country can have significant consequences for others, particularly developing nations that depend heavily on exports. He pointed to the growing use of high trade tariffs and reciprocal trade measures, saying these actions have disrupted international supply chains and placed additional pressure on businesses already struggling with rising production costs.

According to the Deputy Minister, industries in many developing economies continue to face increasing expenses for essential inputs such as fuel and fertilisers while also dealing with uncertainty in global markets. These challenges make it more difficult for businesses to invest in cleaner technologies and adapt to changing environmental standards.

He also highlighted the impact of the European Union's Carbon Border Adjustment Mechanism (CBAM), which places a levy on emissions embedded in imported products. The policy is intended to encourage cleaner industrial production by making carbon-intensive goods more expensive to import into the European Union.

Singh said measures such as CBAM have placed additional pressure on exports from countries like South Africa that are still progressing through the transition toward low-carbon economies. Export-oriented industries now face the dual challenge of reducing emissions while remaining competitive in international markets.

Just transition requires investment beyond emissions reduction

The Deputy Minister argued that climate action in developing countries must go beyond cutting greenhouse gas emissions. A successful transition also requires investment in skills development, infrastructure, technology and financial support for businesses adapting to new economic conditions.

He said governments need to recognise funding gaps across industries while mobilising investment that allows businesses to modernise operations without placing workers and communities at risk. Developing new skills across entire value chains will also be necessary as industries adopt cleaner production methods and shift toward emerging technologies.

Singh placed strong emphasis on engaging with communities and stakeholders throughout the transition process. He said public participation helps build awareness of policy changes while giving governments a clearer understanding of the support and capacity-building measures required by affected industries and workers.

He added that communication is equally important because communities need to understand not only the challenges associated with climate policies but also the economic opportunities they can create. New industries, cleaner technologies and sustainable business models have the potential to generate employment and strengthen economic resilience when properly supported.

According to Singh, identifying risks early allows governments to design practical interventions that reduce disruption while opening new opportunities for long-term economic growth.

South Africa strengthens policies for a low-carbon future

The Deputy Minister said South Africa has already taken important steps to create an enabling policy environment that supports a low-carbon, climate-resilient and inclusive economy. One of the most significant developments has been the implementation of the Climate Change Act of 2024, which provides the legislative framework for the country's just transition.

As part of these efforts, government has engaged companies that produce more than 30,000 tonnes of carbon dioxide equivalent emissions annually to prepare them for the introduction of Carbon Budget Regulations. Under the new system, qualifying companies will be required to develop mitigation plans and report on their progress each year as part of broader efforts to reduce industrial emissions.

Singh described the carbon budget framework as a major step in helping South African industries gradually lower their environmental impact while remaining competitive. He also highlighted ongoing cooperation between national, provincial and local government to improve climate preparedness across municipalities.

Local authorities are receiving support to conduct climate risk and vulnerability assessments while developing climate response plans that strengthen resilience against the effects of climate change. These initiatives are designed to improve adaptive capacity and prepare communities for future environmental challenges.

The Deputy Minister also referred to the recently launched Industrial Development Strategy (IDS) by the Department of Trade, Industry and Competition. The strategy aims to accelerate industrial decarbonisation by encouraging the adoption of cleaner technologies, new energy systems and digital innovation while supporting diversified value chains that create greater economic opportunities.

Singh concluded by reaffirming South Africa's commitment to achieving the emissions reduction targets outlined in the country's updated 2025 Nationally Determined Contribution (NDC) and implementing the Climate Change Act. He said continued partnerships with international organisations, governments, businesses and local stakeholders will be essential in building an economy that delivers climate resilience, sustainable growth and inclusive development for future generations.