EU, South Africa Clean Energy Deal

Key Figures & Findings: The European Commission has opened negotiations with South Africa to establish a new trade and investment deal focused on clean energy and critical raw materials. European Commission President Ursula von der Leyen highlighted South Africa’s role as a key supplier of platinum group metals—vital for hydrogen electrolyzers—and its vast wind and solar potential. President Cyril Ramaphosa emphasized that this agreement could facilitate South Africa’s compliance with EU regulations and enable the export of sustainable aviation fuel to Europe.

Statistics & Insights: The EU has pledged €4.7 billion in new investments, including €303 million in grants, to advance South Africa’s clean energy transition. South Africa holds 91% of the world’s platinum group metal reserves, positioning it as a crucial player in global hydrogen and renewable energy supply chains.

Future Implications: If successful, this agreement could strengthen South Africa’s renewable energy sector while ensuring Europe’s access to essential materials for its green transition. The outcome will set a precedent for future trade deals linking energy security and resource access.

Source: Euractiv