This article argues that technology development, combining the approaches of improving capabilities and transfer mechanisms, can contribute to South Africa’s low-carbon development through innovation and technology-based mitigation actions that increase domestic technological capabilities. Technological capability needs to become a determinant of mitigation action to effectively contribute to achieving South Africa’s low-carbon development goals. International technology transfer and cooperation should contribute to boosting domestic capabilities to advance technological development. It concludes that technology transfer based on pure sales will not contribute to achieving long-term low-carbon development goals.