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The report finds that South Africa's energy fiscal policies are largely misaligned with its climate goals, with fossil fuel subsidies totaling ZAR 172 billion in FY 2020/21. These subsidies, particularly Eskom bailouts and carbon tax exemptions, outweigh the ZAR 100.5 billion in fossil fuel revenues. The social costs of fossil fuel combustion—estimated at a minimum of ZAR 550 billion annually—far exceed both revenues and subsidies. While the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has successfully lowered renewable energy costs, investment has been hindered by political opposition and Eskom's financial instability. The report recommends tying bailouts to transition reforms, phasing out carbon tax exemptions, and using fossil fuel tax revenues to support vulnerable households and a just transition.