2026: A year of delivering climate and economic renewal

The year has officially started. Many South Africans are slowly making their way back to the city from their rural homes. Many well rested from their holidays and bringing a little bit of the holiday calm with them. Others are still tired but are forced to return to work. Desks and diaries are now slowly filling up again. But it's already evident that 2026 is not a year for taking things easy. This year requires attention, action, and tough but important choices, especially when it comes to how South Africa balances climate action with economic growth.

The discussions have shifted. It is no longer about whether climate action is important; rather discussions centre on how well climate action is integrated into social results, investment decisions, and economic planning. In that way, 2026 is less about new goals and more about implementation.

The connection between climate and economic risk is no longer just a theory, both here at home and around the world. Extreme weather, damage to infrastructure, lack of access to water, and growing insurance prices are already changing balance sheets and affecting the flow of financing. At the same time, carbon intensity, climate disclosure requirements, and supply-chain resilience are changing the way global trade works. Climate action is now an important part of South Africa's competitiveness, jobs, infrastructure resilience, and investment confidence. Climate action and economic development are no longer seen as independent policy issues anymore, but are considered to be interrelated.

Increasingly international climate processes are focused on responsibility and execution, especially when it comes to financing and adaptation. Despite the challenging geopolitical landscape, talks about changing the way the global financial system works, such as the role of multilateral development banks and blended finance, are very important for countries like South Africa. They determine if climate resilient infrastructure, energy, and industrial initiatives can be financed at scale and at a cost that makes delivery possible.

Domestically, South Africa starts 2026 with better policy underpinnings than ever before. The Climate Change Act has made climate issues a permanent part of the state's legal and planning frameworks. For business and investors, this brings clarity. Climate objectives are no longer optional; they are now a key part of long-term economic planning. The task now is to accelerate implementation, ensuring that regulations, incentives and implementation mechanisms work coherently across sectors and spheres of government.

Energy remains a central pillar of this transition. Grid expansion, renewable energy deployment, and system reform are no longer just lofty ambitions; they are now key priorities. The anticipated transmission investment and the growing pipeline of renewable projects signal that South Africa's energy landscape is structurally changing.

For business, the implications are significant: improved energy security and new opportunities in manufacturing, construction, services, and finance. Increasingly, the energy transition is understood not simply as an environmental imperative, but as an industrial and employment opportunity.Corporations and capital markets are progressively responding.

Climate disclosure requirements, investor scrutiny, and international sustainability standards are changing how risk is measured and increasingly how capital is distributed. More South African companies are integrating climate considerations into core business strategy, not only as a compliance exercise, but as a matter of competitiveness and resilience.Climate disclosure requirements, investor scrutiny, and prudential regulations and international standards are reshaping how risk is assessed and how capital is allocated. More South African companies are integrating climate considerations into core business strategy, not only as a compliance exercise, but as a matter of competitiveness and resilience.

In this context, the renewal of the Presidential Climate Commission (PCC) is a significant sign of institutional stability and growth. The Commission's first five-year mandate concluded at the end of 2025, and a new cohort of Commissioners has been appointed by President Ramaphosa for the 2026–2030 period in line with the Climate Change Act. This reflects continuity in mandate and purpose, alongside renewal through the breadth, diversity and societal reach of the new Commissioners.

The significance of this lies less in institutional formality and more in what it signals. Climate governance in South Africa is moving from establishment to consolidation. The PCC’s role as a multi-stakeholder platform, bringing together business, labour, communities, civil society and government is increasingly central to building trust, navigating trade-offs and aligning policy with lived economic realities. In a country where climate action directly affects jobs, regions and industries, meaningful social dialogue is not a nice to have, but rather a prerequisite for progress.

So, what does all of this mean for society and business in 2026? First, policy certainty is improving. Clearer rules and longer-term signals reduce investment risk and support planning. Second, there are more investment opportunities in value chains that are related to energy, infrastructure, manufacturing, transportation, agriculture, and services. Lastly, local economic diversification, especially in areas like Mpumalanga and the Eastern Cape that have historically relied on carbon-heavy sectors, is both a challenge and an opportunity for development.

As the year unfolds, business must invest, innovate and lead with intent. Organised labour must help shape fair and credible pathways for workers, whilst keeping both business and government accountable. Communities and civil society must remain active partners in shaping locally grounded solutions. Government, across all spheres, must focus relentlessly on coordination and delivery.

Zimasa Vazi, Senior Manager for Stakeholder Engagements, Presidential Climate Commission.

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

BUSINESS REPORT