South Africa’s economy risks being left behind if it does not transition to a low-carbon economy, says Minister of Forestry, Fisheries and the Environment Barbara Creecy.
“Unless we join the technological transition taking place across the globe, our economy risks being left behind, and in due course, facing redundancy and/or non-competitiveness of our exports in a trade environment that favours goods and services produced in a low carbon environment,” she said on Thursday.
Research indicates that this transition risk will affect major sectors of the country’s economy including energy, mining, agriculture, transport and manufacturing.
“The global transition to a low-carbon economy has begun and will continue. Countries that are investing significantly in low-carbon technologies are seeking to protect their investments with a range of non-tariff and border tax adjustments.”
She made these remarks at the launch of a research publication: “A just transition to a carbon future in South Africa”.
Conscious of both the physical and transition risks in relation to climate change, the National Development Plan has a commitment to building a low-carbon economy and climate resilient society by mid-century.
“Over the last two and a half years we have steadily put in place the architecture to pursue the Paris goals. Our revised Nationally Determined Contribution to reducing greenhouse-gas emissions was submitted to the United Nations Framework Convention on Climate Change (UNFCCC) in October last year,” the Minister said.
The range of the reduction has the two-degree temperature increase as its upper limit. The lower limit is compatible with keeping temperature increase to 1.5 degrees.
Climate Bill and carbon tax
Last year, Cabinet approved the Climate Bill for submission to the National Assembly.
“We are working with seven sectors of our economy to set sectoral emission targets and the mechanisms to monitor compliance once low emission pathways are defined.
“To enhance domestic financing of the transition, National Treasury has introduced the carbon tax, and I must say we welcome the announcements made by Finance Minister Enoch Godongwana on the proposed trajectory for the carbon tax over the next ten years,” Creecy said.
The National Adaptation Strategy has been adopted and the Department of Forestry, Fisheries and the Environment is working with municipalities across the country to mainstream climate resilience into municipal planning and budgeting.
Just transition
“Central to our government’s understanding of the role and place of our transition to a low carbon economy and climate resilient society is the understanding that this transition will only succeed if it helps us not just to address climate risk, but to also address broader development challenges.
“When government included green technology in the Economic Reconstruction and Recovery plan, we understood that this sector can open up new sectors for energy generation, mining, manufacturing and the agricultural sector. But we are also clear that it must also help us with our broader objectives of re-industrialisation, localisation, economic inclusion and most importantly, job creation,” the Minister said.
The Minister said the just transition is not a sudden shift in economic activity but must occur in a conscious, researched and phased manner over time.
“Equally important, it must be characterised by the active involvement of workers and communities who will be impacted upon by the transition in defining both the objectives and road map of the transition.
“It is for this reason that the Presidential Climate Commission (PCC) has been established and driven by the Presidency to ensure a focused drive on the Just Transition, particularly identifying pathways for all sectors and buy-in by all stakeholders.”
She said the second aspect of the climate transition is the concept of climate justice, meaning that workers and communities in sectors most effected by the transition cannot carry a disproportionate burden of the technological changes.
“A central aspect of identifying transition pathways must be addressing the transitional processes facing workers and communities and how they will be an integral part of developing and benefitting from new industries and enterprises, so that no one is left behind,” the Minister said. – SAnews.gov.za
