Climate risk is material for South Africa and the government’s decarbonization goal is commendable. There are many opportunities to pursue a green recovery, but there are also deep structural constraints. As such, the climate ambition faces challenges and is further complicated by the impact of the COVID-19 pandemic. Success in moving toward a green and climate-resilient economy crucially hinges on reforms to tackle the structural rigidities in the economy to allow for dynamic product and labor markets and strong institutional credibility that would minimize the costs of the transition.