SenergyClimate Change and theJust Energy TransitionKeynote Address by Deputy Minister Narend Singh at the FEDUSA Climate Change and Just Transition Summit, 5 September 2024According to the World Economic Forum’s annual Global Risks Perception Survey, climate action failure, extreme weatherevents and biodiversity loss are identified as the top three global risks by severity over the next 10 years.IIn the context of South Africa, we have identified two categoriesof risk to our economy and society. The first is the physical risk,as scientific evidence shows that Sub-Saharan Africa is particularlyvulnerable to climate change and is warming at twice the globalaverage rate. This leads to increased average temperatures, severestorms, droughts and rising sea levels posing risks to our food andwater security, infrastructure and the health of humans and animals.The second category of risk is the transition risk. The globalshift to a low-carbon economy is underway, and countries investingsignificantly in low-carbon technologies are implementing measuresto protect their investments.As an example, and from a South African perspective, thedisadvantages of the Carbon Border Adjustment Mechanism(CBAM) could potentially be significant, impacting the country’seconomy and its international trade relations. As a mechanismdesigned to level the playing field for European Union (EU)producers by imposing charges on imports of certain goods fromoutside the EU based on their carbon content, CBAM coulddisproportionately affect South African exporters, particularlyin sectors like steel, aluminium and power generation wherethe country relies heavily on coal. This could lead to a decreasein competitiveness of South African products in the EU market,potentially reducing export revenues and affecting overalleconomic growth.Additionally, implementing necessary adjustments to meet therequirements of CBAM could require substantial investment incleaner technologies, which might be a challenging endeavourgiven our country’s energy infrastructure and economic constraints.This then underscores the need for thoughtful consideration andpotentially seeking collaborative solutions to mitigate adverseimpacts on developing economies like South Africa.If we do not adopt the technological transition taking placeworldwide, our economy risks falling behind and becoming noncompetitivein a trade environment that favours goods and servicesproduced in a low-carbon setting. This transition risk will affectmajor sectors of our economy, including energy, mining, agriculture,transport and manufacturing.An example of the challenges ahead is the recent decision by theEU to ban the import of motor vehicles with internal combustionengines from 2035.Even though we are not historically responsible for climatechange caused by industrialised nations, we need to decarbonise forthe world to achieve its climate goals. This presents an opportunityto offer investors significant “climate returns” by committing tovoluntary decarbonisation in exchange for concessional fundingfrom developed countries.Just transitions will require extensive policy, legal, technologicaland market changes to ensure fairness and equity. We must alsoconsider the social risks associated with the transition, particularlyrelated to potential job losses and their impact on countrydevelopment agendas.To foster a just transition, the Departments of Forestry, Fisheriesand the Environment (DFFE) and Trade, Industry and Competition(dtic) have jointly conducted a National Employment Vulnerability
energySAssessment (NEVA) and Sector Jobs Resilience Plans (SJRPs) forsectors vulnerable to job losses due to climate change responses.This work aims to prevent the resulting economic and socialburdens from falling on vulnerable people and communities.Sectors examined include coal, metal, transport, agriculture andtourism value chains, with identified opportunities being piloted inMpumalanga (eMalahleni, Steve Tshwete, Msukaligwa and GovanMbeki communities) with the assistance of the Council for Scientificand Industrial Research (CSIR).The pilots are focusing on the development of business casesto enable a just transition to sustainable energy systems in SouthAfrica. This will assist Mpumalanga in retaining its reputation asan energy hub by developing renewable energy generation plantsin municipalities vulnerable to declines in coal activity. Prioritisedactivities may also include infrastructure for developing skills in themaintenance and repair of renewable generation, manufacturingof renewable generation components and allied services. Otheridentified opportunities for the province are:• Recycling coal combustion waste products such as fly ash tocreate new jobs and livelihoods.• Implementing a just energy transition social protection plan.• Establishing a low-carbon just energy transition in the mining,timber, pulp and paper sectors, including using biomass frominvasive plants for process heat and electricity supply.• Accelerating the diffusion of early warning systemsand tools to ensure food security and support the justtransition initiative.• Measures for workforce reskilling and job absorption, socialprotection and livelihood creation, incentivising new greensectors and economic diversification.We also acknowledge the efforts of the industry. For instance:• The National Business Initiative (NBI) has mapped outfeasible pathways for South African business sectors toachieve carbon neutrality by 2050. Some of the country’slargest emitters have committed to supporting the country’sgoal of achieving net-zero carbon emissions by 2050.• Eskom, the country’s largest GHG emitter, has committed, inprinciple, to achieving net-zero emissions by 2050.• Anglo American has set a global target of achieving carbonneutrality by 2040.• Exxaro, one of South Africa’s largest coal miners, aims toattain carbon neutrality by 2050.• Sasol is exploring pathways to achieve net-zero emissionsby 2050.drives our progress, where no-one is left behind and where we standas a beacon of hope and resilience in the face of global challenges.We must also recognise that local government is at the coalfaceof our efforts, as this is where policy legislation and regulation turninto action. We must focus on a back-to-basics approach, getting thebasics right with respect to our daily deliverables. I’m talking abouta suitably skilled workforce, continuous training and upskillingof officials and in respect of service delivery, examples like wastecollection and disposal, ensuring clean water supply and enforcingemissions compliance with local industry. More than half of thebattle will be won if every local sphere of government gets the basicsright. Innovation and consistently good service delivery are whatwill carry the day.We encourage Federation of Union of South Africa (FEDUSA) totake advantage of its position in the just transition debate:Conscientise. Continue to impress upon its members and society,the opportunities presented by the just transition.Collaborate. Work with other sectors to implement just transitionideas. Be part of the discourse.Convene. Try to work together to build a robust compact tocoordinate and rally a common position on matters that shapethe policy.Challenge. Engage and support positions with strong androbust scientific evidence; team up with research institutes,councils, academia and think tanks if there is no capacity togenerate such evidence.In conclusion, allow me to thank you for your time, your energy,and your commitment to this cause to support the achievementof our broader development agenda and integrate the needs ofindividuals, societies and businesses on a more sustainable road forour country and our planet.I, together with Minister George, Deputy Minister Swarts andthe DFFE, will be with you every step of the way on this journey toa just energy future, which ensures that no worker is left behind. SThe labour sector has a significant role in transitioning to a lowcarboneconomy and climate-resilient society. There are opportunitiesto address the triple challenges of poverty, unemployment andinequality if done in a just manner.We, as the DFFE, are willing to work with labour on groundprojects to initiate the just transition concept. Let us collaborate,innovate and implement the solutions that will power our nationforward. Let us build a future that aligns with our environmental,economic and social imperatives. A future where sustainable energyService magazine | 17
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