New data shows 93% of South African low‑carbon players back CCS, but diversification is coming

New research from multinational law firm Pinsent Masons shows that South African investors and developers see growing opportunity in the low‑carbon market, with 93% of South Africa’s respondents having invested in global or South African carbon capture or storage (CCS) technologies in the past year.  Respondents also flagged current activity beyond CCS, with 42% looking at low carbon hydrogen, 26% solar power, 23% e-fuels, 16% nuclear fission advanced.

Inside the Energy Transition, Pinsent Mason’s landmark study, draws on insights from 964 global VC investors and technology developers showing that for respondents based here, South Africa remains the primary market for expansion, with 56% of respondents planning to grow their activity domestically, followed by more muted outward interest in markets such as Germany (24%), Hong Kong (20%), France and USA (18%). In terms of South Africa’s attractiveness as a low-carbon destination, 8% of global respondents cited interest in expanding low carbon activity in South Africa in the year ahead.  

Looking ahead to 2026, 71% of the South African respondents expect to continue investing in CCS, but a growing share also plan activity across renewables and emerging technologies, including solar (39%), nuclear fission (36%) low carbon hydrogen (34%), e fuels (23%) and wind power (22%).

South African investors and developers are also focussed on energy storage systems, with respondents listing long duration energy storage (67%), grid optimisation (58%), short duration energy Storage (51%), 47% demand optimisation and battery storage (29%), tracking slightly ahead of global appetite suggesting that despite interest in new innovative technologies,  a reliable energy supply and grid stability remain a priority for South African investors and developers.

Africa as a region was most likely to attract strong positive sentiment towards its regulatory landscape, with 86% of global respondents saying they agreed that Africa has a supportive regulatory landscape for low-carbon development.

South African investor respondents highlighted several barriers that they perceive make low-carbon investment more risky, including high compliance costs (56%), technology is difficult to scale (52%) and unstable regulatory landscape (40%), both clear signals to policy makers that there’s more to be done to encourage investment and development in South Africa.

Margo-Ann Werner, Environment Legal Director at Pinsent Masons said: “Our survey demonstrates a clear appetite from investors and developers in South Africa to invest into low carbon technology, the question facing South Africa and the African continent is how do we harness this interest to develop a thriving and sustainable low carbon market that can help us in the global race to net zero whilst demand for energy is ever increasing. As global finance continues to target and direct investments at low carbon technology, we need regulatory certainty around decarbonisation compliance obligations to create a clear investment proposition to domestic and foreign investors, so that we can broaden the pathways for the energy transition.”