South Africa’s economy is at risk of being left behind if it doesn’t transition to a low carbon economy, warns Barbara Creecy, Minister of Forestry, Fisheries and the Environment.
“Unless we join in the technological transition happening around the globe, our economic economy risks being left behind and in due time, facing redundancy/or non-competitiveness our exports to a trade environment which favours goods or services produced in low carbon environments,” she stated on Thursday.
Research shows that this transition risk will impact major sectors of the country’s economy, including energy, mining, transport, and manufacturing.
“The global transition towards a low-carbon economy has already begun and will continue. Countries that invest in low-carbon technologies heavily are looking to protect their investments by adjusting their tax rates at the border and non-tariff.
At the launch of a research publication, she made these remarks: “A just transition towards a carbon future for South Africa”.
The National Development Plan is conscious of both the transition and physical risk associated with climate change. It has made a commitment that the National Development Plan will build a low carbon economy and a climate resilient society by the middle of the century.
“Over the past two and a quarter years, we have steadily put into place the architecture to achieve the Paris goals. The Minister stated that the revised Nationally Determined Contribution to reducing greenhouse gas emissions was submitted to UNFCCC in October last year.
The upper limit of the range of temperature reduction is two degrees. The lower limit can be used to maintain a temperature increase of 1.5 degrees.
Climate Bill and carbon Tax
Cabinet approved the Climate Bill last year for submission to National Assembly.
“We are currently working with seven sectors in our economy to establish sectoral emission targets. Once low emission pathways have been defined, we will monitor compliance.
Creecy stated, “To increase domestic financing of the transformation, National Treasury has instituted the carbon taxes and I must admit we welcome the announcements by Finance Minister Enoch Goongwana on the proposed trajectory to the carbon taxes over the next 10 years.”
The National Adaptation Strategy is now in place. The Department of Forestry, Fisheries and the Environment has been working with local municipalities to integrate climate resilience into their budgeting and planning.
Just transition
“Our government understands the importance of our transition to a low-carbon economy and climate resilient society. This understanding is fundamental to our understanding of how we can achieve this goal.
“When green technology was included in the Economic Reconstruction and Recovery plan it meant that we knew that this sector could create new opportunities for energy generation, mining and manufacturing. 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.
Minister says the just transition does not involve a sudden shift in economic activity, but must be conscious and carefully planned over time.
“Equally important, it must include the active participation of workers and communities that will be impacted by the transition in defining both its objectives and the road map.
“It is this reason that President Climate Commission (PCC), was established and driven to by the Presidency to ensure an individualized drive on the Just Transition.
She stated that the second aspect of climate transition is the concept climate justice. This means that communities and workers in the most affected sectors cannot be disproportionately burdened by technological changes.
Minister said that identifying transition pathways is a central part of the process. He explained that it was important to address the transitional needs of workers and communities. These will be an integral part in developing and benefiting from new industries and businesses, so that no one is left behind.
(With inputs from South African Government Press release)
