Eskom and Exxaro’s Commitment to a Greener South Africa

Cutting Carbon, Clearing the Air: Eskom and Exxaro’s Commitment to a Greener South Africa

In a landmark step towards combating climate change and achieving South Africa’s climate goals, Eskom and Exxaro Resources have signed a Memorandum of Understanding (MoU) to collaborate on reducing carbon emissions, improving air quality, and ensuring a just transition to a low-carbon economy.

The partnership aligns with South Africa’s commitment to the Paris Agreement and national environmental regulations, aiming to create sustainable, inclusive growth while addressing the country’s energy and environmental challenges. The agreement will focus on strategic initiatives, research, and technology-driven projects aimed at decarbonisation and climate resilience.

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Tackling Emissions Through Innovation: Eskom’s Approach

Central to the agreement is the joint measurement, management, and reduction of Scope 1, 2, and 3 emissions. This means tackling emissions not only from their direct operations but also from purchased electricity and the broader value chain. Eskom and Exxaro will explore investing in cutting-edge technologies, including renewable energy solutions and emissions management systems, to accelerate the transition away from fossil fuels.

Eskom’s Research, Testing & Development (RT&D) unit will spearhead these efforts on Eskom’s side, using its expertise to identify scalable solutions that reduce greenhouse gas emissions while enhancing operational efficiency. The ultimate goal is to make South Africa’s energy mix more sustainable, competitive, and resilient.

Driving a Just Transition

The agreement goes beyond emissions reduction—it also embraces the principles of a just transition. This includes creating green jobs, fostering local skills development, and engaging with affected communities to ensure no one is left behind. According to Exxaro CEO Ben Magara, the collaboration will help “deliver meaningful socio-economic benefits for the communities we serve” while working toward a climate-resilient, low-carbon future.

Exxaro’s existing Sustainable Growth and Impact strategy already focuses on ESG priorities such as rehabilitating mined land, protecting biodiversity, and boosting energy and water efficiency. With a decarbonisation roadmap now in place, Exxaro is targeting carbon neutrality by 2050, and partnerships like this one with Eskom are key to achieving that ambition.

Eskom and Exxaro Collabortion: Supporting National Climate Goals

This collaboration comes at a critical time. South Africa is under pressure to reduce its reliance on coal, which still generates around 80% of the country’s electricity. The air pollution from coal-fired power plants like Medupi and Kusile contributes to approximately 20,000 premature deaths annually. South Africa has pledged to reduce emissions to between 350–420 million tonnes by 2030 and achieve net-zero emissions by 2050.

Minister of Forestry, Fisheries and the Environment, Dr Dion George, recently welcomed Eskom’s move to establish a new renewable energy business unit. The tender for this independent subsidiary, announced in early April 2025, is seen as a game-changer that will fast-track renewable energy deployment and unlock public-private partnerships.

“This marks a pivotal moment in addressing the country’s energy challenges while aligning with global climate goals,” said Minister George, emphasizing the importance of Eskom’s commitment to renewable integration and environmental responsibility.

Powering a Greener Future

The combined efforts of Eskom and Exxaro have the potential to significantly reduce South Africa’s carbon footprint. With over 2,500 hours of sunshine annually and coastal wind speeds averaging 8m/s, the country is ideally positioned to scale solar and wind energy.

Economically, transitioning to renewables could save R20 billion annually by reducing coal imports and cutting healthcare costs related to pollution. Environmentally, it could slash CO₂ emissions by up to 50 million tonnes per year, easing the burden on vulnerable communities—especially in coal-heavy regions like Mpumalanga.

The renewable energy unit also holds promise for rural and underserved communities. Microgrids powered by solar, like those piloted in Upington, are already lighting up thousands of homes. Women, who head most rural households, will benefit from cleaner energy sources, reducing their exposure to harmful indoor pollution from traditional fuels.

A Transparent and Inclusive Approach

The success of this collaboration hinges on transparency, stakeholder engagement, and innovation. Minister George has called for an inclusive tender process that welcomes both local and international expertise. The Department of Forestry, Fisheries and the Environment will closely monitor the initiative to ensure alignment with the country’s climate goals and environmental standards.

As Eskom and Exxaro chart a path towards a cleaner, greener South Africa, their partnership offers a blueprint for how public-private collaboration can drive sustainable transformation. By integrating cutting-edge technology, focusing on community upliftment, and staying committed to global climate targets, this initiative stands to power not just better lives in Africa—but a better planet for all.