Policy highlights

Direct public financial intervention in project development,

especially in the short term to support scale up of private players:

• Preferred form of funding mechanism not yet detailed, to include both direct funding and public-private/international cooperation partnerships.
• RSA to build up an investment fund to support public investment into pilot/early projects.

• Issuing of government-backed green bond to support funding (based on a green finance framework to be developed).

  Possible measures being investigated to:
  • Support export: leverage Special Economic Zones, alignment of

  Guarantees of Origin system to international standards, government-lead negotiation of favourable export tariffs with other countries.

  • Develop domestic market: carbon pricing, extension of renewables incentives to green hydrogen, centralisation of permitting processes.

  • Explicit focus on Boegoes Bays Hub as lighthouse project, followed by export hubs around Saldanha and Port Elizabeth and Vaal as domestic hub.

  • Hydrogen strategy not yet transposed into regulations to define the implementation. While this leads to policy uncertainty, it could create the opportunity for discussion with policymakers on regulations’ design.