South Africa accelerates industrial decarbonisation agenda at LeadIT Summit in Johannesburg

By:  Nana Appiah Acquaye

South Africa’s efforts to accelerate industrial decarbonisation were highlighted at the Leadership Group for Industry Transition (LeadIT) Summit held in Johannesburg, where stakeholders from government, industry, finance, and international organisations convened to discuss pathways toward low-carbon industrial development.

The summit focused on advancing green steel production and strengthening carbon market mechanisms as part of broader efforts to support sustainable industrial transformation.

The United Nations Industrial Development Organization (UNIDO) was represented by Mchenge Nyoka, who participated in a panel discussion on opportunities to accelerate industrial decarbonisation. The panel also featured representatives from the Localisation Support Fund, the Industrial Development Corporation, and the World Bank, and was moderated by the Africa Futures Policy Hub.

During the discussion, Nyoka highlighted UNIDO’s ongoing support for South Africa’s steel sector transition, particularly through a proposed initiative titled “Accelerating Steel Decarbonisation in South Africa.” The project, developed in collaboration with key stakeholders including the Industrial Development Corporation, was submitted to the Mitigation Action Facility in April for funding consideration.

The initiative aims to support the transformation of the steel industry toward near-zero-emission production through an integrated framework that combines policy development, demand stimulation for low-emission steel, capacity building, and the establishment of a dedicated financing mechanism.

UNIDO noted that effective industrial decarbonisation will require coordinated action across government, industry, financial institutions, civil society, and labour, with alignment on policy direction, investment flows, technology adoption, skills development, and just transition priorities.

According to stakeholders, the transition to low-emission steel is critical not only for meeting South Africa’s climate commitments but also for maintaining global market access, improving long-term competitiveness, and positioning the sector to comply with emerging international standards on low-carbon industrial production.