As the G20 presidency passes from Brazil to South Africa, the stage is set for the first-ever summit on African soil next year. In a world growing increasingly nationalist, some may question the realism of President Cyril Ramaphosa’s theme — “Fostering Solidarity, Equality, and Sustainable Development”.
Even before the US election, Western-led initiatives — from climate policy to development finance — faced criticism for prioritising the Global North despite lofty rhetoric. A second Trump administration will bring a more openly transactional approach, prioritising self-serving gains in its global dealings.
Nonetheless, South Africa’s leadership presents a unique opportunity to produce meaningful outcomes for Africa and the world — if it can convince global leaders, increasingly fixated on zero-sum thinking, of the collective benefits at stake. Here are three areas where South Africa can lead:
Solidarities levies
With G20 nations facing fiscal constraints, governments are turning to innovative ways to fund critical priorities without straining working-class citizens. Proposals like a billionaire wealth tax or fossil fuel levies are politically challenging. Yet Brazil’s G20 presidency marked a breakthrough this July by securing unanimous support for a 2% wealth tax on billionaires — potentially raising $250bn while affecting only about 100 families worldwide.
The Global Solidarity Levies Task Force notes that international levies targeting the most polluting sectors or wealthiest individuals could provide a transformative increase in grant financing. Specific levies, such as taxes on business and first-class air travel or shipping emissions, could be particularly feasible. Such levies offer a clear win-win: governments can raise funds directly benefiting working families while advancing sustainable development goals. A recent Global Citizen-Glocalities report also revealed strong support among G7 countries — including bipartisan backing in the US — for making polluting industries such as shipping cover the costs of their emissions.
Scaling up renewables in Africa
While many predict the incoming Trump administration will reduce US renewables incentives, energy leaders I’ve spoken to believe this won't hinder investment in African renewables. Mike Silvestrini, CEO of Energea, a renewable energy investment platform, said his company has already built assets across South Africa, Botswana and Sierra Leone. As he put it, “Who occupies the White House won’t affect renewable deployment — solar, wind, or hydropower — in Africa.”
In many African countries, renewables are not only market-competitive but also the most reliable energy source. With short-term de-risking incentives from the World Bank and other development finance institutions — a key priority for World Bank President Ajay Banga — many nations are well-positioned to attract additional private investment, driving energy access and job creation.
In Rio this weekend, President Cyril Ramaphosa will join European Commission president Ursula von der Leyen and Global Citizen, supported by the International Energy Agency, to launch a campaign to scale renewable investments across Africa during South Africa’s G20 presidency. The initiative seeks to close what Raj Shah of the Rockefeller Foundation calls “the green power gap”.
To be clear, investing in renewable energy is a mutually beneficial endeavour. With rising nationalist pressures and a fragile economic situation, any European development spending will be heavily scrutinised. As one political leader in Oslo bluntly put it, “What have we gained from spending 1% of our budget on development elsewhere?”
By leveraging public investment through the EU’s Global Gateway Initiative, Europe is unlocking private sector capital, opening new markets for European businesses, and reducing reliance on Russian gas and fossil fuels. It strengthens Europe’s competitive edge against China by securing critical raw materials for future industries. It also boosts regional security by enabling countries such as South Africa to reduce dependence on foreign energy, all while creating jobs. Research by FSD Africa and Shortlist suggests a green economy could create up to 3.3-million jobs across Africa by 2030. Supporting Africa’s sustainable growth also helps mitigate climate change, which, as seen in recent floods in Spain, impacts wealthy nations too.
Boosting demand for carbon credits
South Africa’s G20 presidency is a pivotal opportunity to generate new revenue by driving demand for carbon credits. As Shilpika Gautam, CEO of carbon removal company Opna, noted: “Given the track record of developed countries, we need mechanisms like carbon finance to incentivise climate action now.”
Businesses and investors buy carbon credits to support projects that actively reduce, avoid, or capture emissions — from conserving forests and halting coal projects to large-scale carbon capture. Africa is uniquely positioned to benefit: as Kenya’s special envoy for climate Ali Mohamed points out, the continent holds one-third of the global potential for additional carbon sequestration from natural resources, creating significant financial opportunities. In fact, Climeworks, a Swiss company, highlighted Kenya as ideal for direct air capture thanks to its rock formations and robust geothermal energy — offering unmatched conditions for carbon storage and removal.
This is an opportunity to position South Africa as a global leader in unlocking value through these groundbreaking models.
— Leon Naidoo, chairman of TransEnergy Global
With regulated carbon markets in the EU and US states like California, Africa can become a trusted source of high-integrity, 'compliance-grade' carbon credits. South Africa’s G20 presidency offers a prime platform to showcase the continent’s climate start-ups and attract vital investment, boosting business revenue and government tax income.
As Leon Naidoo, chairman of TransEnergy Global, which operates a South Africa-based start-up leveraging carbon credits for environmental change and responsible investment, noted: “This is an opportunity to position South Africa as a global leader in unlocking value through these groundbreaking models.”
Of course, ensuring credit integrity is essential to prevent greenwashing and meet new regulatory standards. Recent global carbon market rules from Baku, along with frameworks like the ‘Equitable Earth’ standard, represent necessary steps towards greater transparency and reliability, even as refinements continue.
Activities such as forest conservation also present an opportunity for South Africa to align with Trump 2.0, given his prior endorsement of such initiatives. With Trump’s ally, Elon Musk, leading Tesla — one of the world’s largest carbon credit traders — both Tesla and African nations could benefit if more US states expand compliance credit requirements. As the US prepares to chair the G20 in 2026, boosting carbon credit demand could become a shared focus between the US-SA presidencies, positioning Africa’s carbon credit market as a critical player and driving economic development.
In a world shaped by Trump 2.0, fostering solidarity may seem challenging. Yet, for pragmatic idealists, it remains achievable through strategic framing that emphasises win-win solutions. Solidarity levies, scaling up renewables in Africa, and boosting demand for carbon credits offer three clear opportunities.
Even achieving a fraction of these goals would mark a successful G20 presidency for South Africa, advancing Africa's development in line with the AU’s Agenda 2063, “The Africa We Want”, while aligning with the self-interest of other nations.
Michael Sheldrick is a co-founder of Global Citizen, author of “From Ideas to Impact” (set to launch in South Africa through Exclusive Books in December) and a member of the TransEnergy Global Advisory Board.
For opinion and analysis consideration, email Opinions@timeslive.co.za
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.