Coal and energy cooperation between the European Union and the Republic of South Africa in the context of the transformation of energy markets

Abstract

This article examined coal and energy cooperation between the European Union and the South African Republic in the context of the transformation of energy markets. The article started with analysis of South Africa’s coal and energy sector, then turned to the EU climate pressure on South Africa, and explained its logic and consequences. It is argued that South African participation in climate initiatives and its implementation of green transition policy were determined by the EU climate influence. Then the article focused on the prospects of long-term coal and energy cooperation between the European Union and South Africa in the context of the current conflictual relations between Russia and ‘the collective West’ with the EU’s embargo on Russian coal, European climate ambitions to expand renewable energy and to achieve carbon neutrality, and South Africa’s domestic energy challenges. The authors demonstrated that even though the South African coal supply to the European Union seriously increased in 2022 due to the anti-Russian coal embargo then it radically dropped in 2023. This drop could be explained by normalization of coal prices and European demand, possibility for the EU to use accumulated coal reserves and climate concerns about share of coal in the energy balance of the European Union, increased demand for coal in the Asia-Pacific region caused by rapid economic growth and post-COVID recovery there, as well as internal permanent problems of South Africa (corruption, vandalism, thievery, outdated infrastructure, etc.) and its low competitiveness compared to key rivals (Australia and the United States).

Keywords:

European Union, South Africa, energy, coal, embargo, climate change