As Finance Minister Enoch Godongwana delivered the 2025 Budget Speech, Earthlife Africa Johannesburg highlights concerns over its failure to address South Africa’s deepening climate and energy crises. Despite a R219.2 billion energy allocation, no meaningful funding was set aside for climate adaptation at the municipal level, leaving vulnerable communities exposed to worsening climate disasters. The budget also lacks support for household rooftop solar, reinforcing reliance on costly, unreliable electricity.
Earthlife Africa Johannesburg’s Thabo Sibeko says, “The 2025 Budget Speech fails to address South Africa’s deepening energy and climate crises. Despite the increasing frequency of extreme weather events, there are no meaningful allocations for climate change mitigation and adaptation at the municipal level. This lack of funding shows a worrying disregard for vulnerable communities already bearing the brunt of climate disasters.
It is equally concerning that the budget is silent on support for household rooftop solar. Treasury has once again failed to meet international grant funding halfway to drive a just transition. Instead, budget allocations for pipeline projects and water-use licenses suggest continued government interest in fossil fuel extraction rather than accelerating a shift to a low-carbon economy.
Ongoing debt relief for Eskom is unacceptable, especially given the utility’s lack of transparency in how these funds are used. Adding to this burden, Eskom has filed for yet another tariff hike, tightening the financial noose around struggling households.
Even though it will be implemented in 0.5% increments (between 2025/26), ultimately the proposed 1% VAT increase will further entrench energy poverty. Many South Africans are eager to switch to more affordable renewable energy, but this increase will make it even harder for them to afford even a basic 1kW solar system for their homes. Instead of empowering citizens to become energy producers, the budget keeps them trapped as net consumers, locked into an unreliable and expensive electricity system.
If the government is serious about tackling climate change and energy poverty, it must invest in real solutions – prioritising community-led renewable energy instead of propping up a failing, fossil fuel-based system.”
Earthlife Africa’s Ulrich Steenkamp says, “Overall, this is not a people-centred budget. The VAT increase remains a major concern, as it will drive up the cost of all goods and services, including electricity. Combined with the recent electricity tariff hikes, this means that many South Africans, already struggling financially, will face even greater hardship. More households will be forced to choose between putting food on the table and keeping the lights on – an especially alarming reality as we head into winter.
It is also concerning that there are ongoing talks and rumours about new nuclear power deals with Russia or Iran, amid growing tensions with the USA. If these claims hold any truth, one would have expected to see a budget allocation for such projects – yet none has been mentioned. This raises questions about the government’s transparency and decision-making in the energy sector.
Lastly, while the government and various stakeholders are eager to fast-track the green hydrogen economy, there is no dedicated budget allocation to support its development. If South Africa is serious about becoming a leader in green hydrogen, then investment in research, infrastructure and resources must be a priority. Without proper funding, this industry may fail to get off the ground, missing a key opportunity for sustainable economic growth.”
Ultimately, the budget prioritises big infrastructure over real solutions for ordinary South Africans. Without bold investment in community-led renewables and climate resilience, the country risks deepening inequality and missing key opportunities for sustainable growth.
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