Decarbonizing South Africa’s Shipping and Trucking Sectors

South Africa is positioned to lead in green hydrogen and zero-emission fuels (ZEF) for shipping and trucking, potentially adding 5.9% to its GDP by 2050. However, the transition is hindered by a critical energy crisis, with a grid operating at roughly 50% capacity, and significant financial barriers, including capital costs as high as 18%. The report emphasizes the need for public-private partnerships, international concessional finance, and infrastructure upgrades at ports and along road corridors to move from pilot projects to commercial scale.

• South Africa has the potential to reach net zero by 2050 by installing 190 GW of renewable energy, which could reduce carbon emissions by approximately 60%. This would require an annual installation of 6-7 GW of renewable capacity through 2030.
• The development of a green hydrogen (GH2) value chain could increase South Africa's GDP by approximately 5.9% (or ZAR 500 billion) and create up to 1.8 million new jobs by 2050.
• South Africa's strategic location makes it an ideal bunkering hub for zero-emission shipping fuels, with the World Bank estimating international shipping demand for South African hydrogen at 182,000 tonnes per year by 2030 and 2 million tonnes per year by 2050.
• The trucking sector is a primary emissions source, with trucks accounting for 63% of South Africa's transport emissions. Transitioning to zero-emission trucks (ZETs) is critical as export markets, particularly the EU, implement carbon border taxes.
• Severe infrastructure and energy constraints impede the transition: the electricity grid operates at little more than 50% capacity, and South African ports were ranked at the bottom of global container port performance by the World Bank in 2021.
• Financial barriers are significant, with the cost of capital for energy projects reaching as high as 18% and debt costs up to 12% in South Africa, making projects less attractive to financiers compared to global markets.
• There is a substantial funding gap for the Just Energy Transition Investment Plan (JET IP) for 2023-2027, estimated at approximately ZAR 700 billion, with new energy vehicles and green hydrogen facing funding gaps of 78% and 89% respectively.
• The government has fast-tracked nine 'strategic integrated projects' (SIPs) for green hydrogen, focusing on hubs in Durban-Richards Bay, Saldanha Bay, and Boegoebaai.
• Widespread adoption of zero-emission trucks is hindered by a high total cost of ownership (TCO), import duties of 12-20% on clean technology, and a lack of public charging infrastructure, with a need for 30,000-45,000 new units per year.

APA

World Economic Forum (2024). Decarbonizing South Africa’s Shipping and Trucking Sectors. https://www3.weforum.org/docs/WEF_Decarbonizing_South_Africas_Shipping_and_Trucking_Sectors_2024.pdf

Chicago

World Economic Forum. Decarbonizing South Africa’s Shipping and Trucking Sectors. 2024. https://www3.weforum.org/docs/WEF_Decarbonizing_South_Africas_Shipping_and_Trucking_Sectors_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Decarbonizing South Africa’s Shipping and Trucking Sectors |date=June 2024 |url=https://www3.weforum.org/docs/WEF_Decarbonizing_South_Africas_Shipping_and_Trucking_Sectors_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024decarbonizing, author = {{World Economic Forum}}, title = {{Decarbonizing South Africa’s Shipping and Trucking Sectors}}, institution = {World Economic Forum}, year = {2024}, month = jun, url = {https://www3.weforum.org/docs/WEF_Decarbonizing_South_Africas_Shipping_and_Trucking_Sectors_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }