Presentations

Refining and logistics sectors (Dave Wright, Independent Researcher and a Director of the South African National Energy Association)

Petrol stations, workers and a just transition in South Africa (Nokwanda Maseko, TIPS Senior Economist)

Employment opportunities in a biomass supply chain (Farai Chineshe, Bioenergy Analyst, WWF South Africa)

Media

Press release: Some tough conversations needed to address the transition in the liquid fuel value chain

Just transition holds opportunities, but also risks for South Africa's liquid fuel value chain (Engineering News, 8 June - Schalk Burger)

This webinar is part of the Making Sense of Employment in South Africa's Just Energy Transition project. TIPS and the WWF South Africa, with the support of GIZ, are implementing this initiative to support policymaking for South Africa's just transition. This focuses on employment and the relevant challenges and opportunities in the country's just energy transition.

Related research

Research Report: Exploring alternative options for coal truckers in a biomass supply chain (Farai Chireshe and Tjasa Bole-Rentel (WWF South Africa)

Policy Brief: Employment metrics in South Africa’s electricity value chains (Lauren Hermanus, Adapt)

Programme  

Welcome and introduction: Gaylor Montmasson-Clair, TIPS

Presentation of research findings

• Refining & logistics sectors, Dave Wright, Independent Researcher and a Director of the South African National Energy Association (SANEA)
• Petrol stations, workers and a just transition in South Africa, Nokwanda Maseko, Senior Economist, TIPS
• Exploring employment options in a biomass supply chain, Farai Chireshe, Bioenergy Analyst, WWF-SA

Panel discussion

• Shamini Harrington, Vice-President: Climate Change, Sasol and Presidential Climate Commissioner
• Boitumelo Molete, Social Development Policy Coordinator, Congress of South African Trade Unions
• Rod Crompton, Adjunct Professor & Director, Wits Business School, African Energy Leadership Centre

Background 

While there is consensus that South Africa should decarbonise rapidly to meet its climate commitments, in line with a net zero emission pathway by 2050, the impacts of such a low-carbon transition and how it should be mitigated are hotly debated. In South Africa’s fossil fuel dependent economy, these debates have coalesced around the phase-out of coal and the introduction of renewable energy. Yet, the transition will have economy- and society-wide implications. Particularly, the liquid fuel value chain is set to be impacted as transportation is increasingly electrified and the consumption of petroleum products gradually decreases. The implications of the low-carbon transition on the liquid fuel value chain in South Africa remain largely unexplored.

While not a traditional oil producer, South Africa has an important liquid fuel value chain. It ranges from coal- and gas-to-liquid production, to import terminals and refineries, to transportation and retail services. The drive to reduce greenhouse gas emissions, heightened environmental standards (particularly for fuels), and technological evolutions (especially in transportation) are set to deeply impact the value chain. The impact on the unique circumstances in the South African liquid fuel value chain are unclear. South Africa is a net importer of liquid fuel but does have material production from coal and gas. At the same time, fuel standards lag significantly global standards and local refineries are small in size by international metrics. Global developments are set to lead to the restructuring and closure of facilities, with impacts throughout the value chain. In contrast, the domestic industry could be a major player in the production of so-called "powerfuels" or "green fuels", leveraging strong renewable energy potential, a large sustainable biomass resource base and expertise in the Fischer-Tropsch process. Mostly capital intensive to date, the industry does employ a noteworthy number of people, particularly at the retail stage (i.e. petrol stations). Future development could create meaningful employment in the value chain. Within this context, understanding what a "just transition" of the liquid fuel industry in South Africa could look like remains to be investigated.

About the facilitator 

Gaylor Montmasson-Clair is a Senior Economist at TIPS. He leads TIPS's work on Sustainable Growth. Gaylor is also a Research Associate at the University of Johannesburg’s Centre for Competition, Regulation and Economic Development (CCRED). Gaylor has been working on green economy issues for more than a decade and has carried out extensive research on the transition to an inclusive green economy from a developing country perspective, with a focus on policy frameworks, industrial development, just transition and resource security.

About the presenters and panellists 

Nokwanda Maseko is a Senior Economist at TIPS. She was previously a Budget Analyst at National Treasury and an Assistant Director at the Economic Development Department (EDD) focused on industrial policy.

Farai Chireshe is a bioenergy analyst at WWF-SA. He is a seasoned chemical engineer and renewable energy expert with a focus on technology advancement, environmental sustainability, and climate change mitigation and adaptation. He is an expert on sustainable aviation fuels (SAF).

Dave Wright is an independent consultant focusing on energy matters with oil and gas as a particular interest, since he retired from Engen Petroleum after over two decades at the company. He is on the Board of South African National Energy Association (SANEA), as a Director. He was SANEA’s Secretary General from 2012 to 2018. He is also an Adjunct Professor at the University of Cape Town.

Shamini Harrington is a seasoned climate change expert who has a Master’s Degree in Environmental Science with a specialisation in climate change management. She began her career as a researcher at the CSIR, before moving into a corporate environment. At Sasol she is the Vice President for Climate Change where she leads a diverse team focusing on reducing emissions, transforming operations and shifting the company’s portfolio. In December 2020 she was appointed as a Presidential Climate Commissioner. For five years she negotiated international climate change policy, as the first business representative on South Africa’s negotiating team at the United Nations Framework Convention on Climate Change. She was previously Co-Chair of the National Business Institute’s Environment Committee and Chair of the South African Petroleum Industry Association’s Climate Change Committee. She is the current BUSA Environment and Just Transition Committees Chair, representing business at NEDLAC. 

Rod Crompton is a Visiting Professor at the Wits Business School at the University of Witwatersrand, where he established the African Energy Leadership Centre. He was a full-time board member at the National Energy Regulator of South Africa (NERSA) for 11 years and was Deputy Director General at the Department of Minerals and Energy where he was responsible for hydrocarbons and energy planning for eight years. He is also a Non-Executive Director at Eskom.

Boitumelo Molete is the Social Development Policy Coordinator, within the Policy Unit of the Congress of South African Trade Unions (COSATU). Prior to that, she was a Research Project Assistant at the National Labour and Economic Development Institute (NALEDI).

For further information contact Rozale@tips.org.za

Overview of the European Green Deal (Ariane Labat, EU Delegation to South Africa)

Opportunities and risks for South African exporters (Martin Cameron, Trade Advisory)

The Carbon Border Adjustment Mechanism and implications for South African and European Union trade (Lerato Monaisa, TIPS)

The EU’s Green Deal and its implications for South Africa ( Karen Bosman, Wesgro)

Preparing green SMMEs for trade opportunities presented by the European Green Deal (Trudi Hartzenberg, tralac) 

Information sheets

Carbon Border Adjustment Mechanism

Farm to Fork Strategy

Circular Economy Action Plan

Research report

The European Green Deal: Context, challenges and opportunities for South African SMEs operating in the green economy (TIPS, tralac, Trade Advisory)

Policy Briefs

Sustainable complexity: Managing export regulations in the European Green Deal (Christopher Woood)

European Green Deal: The Carbon Border Adjustment Mechanism and implications for South African and European Union trade (Lerato Monaisa, TIPS) 

Media

Press release: We need to throw our green hat into the ring - a call to South African exporters

Background  

The European Green Deal (EGD) is a is a set of policy initiatives by the European Commission with the overarching aim of making Europe climate neutral by 2050. These policy initiatives aim to make all sectors of the European Union's economy fit to contribute to the European Union reaching its climate targets by 2030 in a fair, cost-effective and competitive way. The EGD proposes several action plans and initiatives in priority areas, which include energy, land, biodiversity, clean air, sustainable foods and buildings, among others. South African exporters to the European Union will need to adapt to this change, to assure their long-term competitiveness in a changing market. This webinar focuses on the EGD and its potential implications for South African trade with the European Union.

Welcome and introduction

• Elize Hattingh, Sustainable Growth Researcher, Trade & Industrial Policy Strategies (TIPS)

Overview of the EDG

• EDG overview - Ariane Labat, EU Delegation to South Africa.
• Carbon Border Adjustment Mechanism (CBAM) implications - Lerato Monaisa, TIPS
• Opportunities and Risks for South African exporters - Martin Cameron, Trade Advisory

Panel Discussion: EDG Trade Impacts for South Africa

• Trudi Hartzenberg, tralac
• Karen Bosman, Wesgro
• Melisizwe Tyiso, Nadeli
• Tinashe Kapuya, Bureau for Food and Agricultural Policy

Open discussion (Q&A)

About the speakers

Ariane Labat is currently counsellor for climate action, environment and agriculture at the EU Delegation to South Africa, after four years as head of cooperation for the EU Delegation to the Kingdom of Eswatini. Ariane was previously cluster lead mitigation for the EU international negotiation team at the UNFCCC from Cancun to the Paris Agreement; she had further previous assignments as an economist working to unlock sustainable and inclusive growth opportunities in Europe, Latin America and China.

Lerato Valentia Monaisa is an Economist and works in the Sustainable Growth pillar at TIPS. She has a Bachelor of Economics (with a distinction in economics) and Bachelor of Economics Honours (with distinction) from Rhodes University. She has MPhil in Industrial Policy at the University of Johannesburg.

Trudi Hartzenberg is the Executive Director of tralac. She has a special interest in trade-related capacity building. Her research areas include trade policy issues, regional integration, investment, industrial and competition policy.

Martin Cameron is a quantitative economist specialising in quantitative executive decision support modelling, economic impact analysis and engineering management decision support. He has extensive experience in international trade and energy economics.

Tinashe Kapuya is an experienced soft commodities analyst, and agricultural value chain and trade specialist who has worked in this capacity both as a researcher and practitioner in the private sector over the past 10 years. His areas of expertise include agribusiness and value chain development, market and trade analysis, agro-food system analysis, research and policy advocacy. Tinashe was a regular contributor to the Agbiz Weekly Newsletter, GrainSA magazine and FarmBiz Magazine and continues to write for the Landbouweekblad and Business Day, among others.

Karen Bosman works as a Strategic Research and Public Affairs Officer at Wesgro. Areas of experience include international trade and investment law; policy advocacy; export development and international investment promotion and facilitation; strategic communication; legislative and constitutional processes; legislative analysis; regulation of international services trade; regional economic harmonisation; commercial law and litigation. She has a Master’s Degree in International Business and Economic Law from Georgetown University.

Melisizwe Tyiso works as a Researcher at the National Labour and Economic Institute (NALEDI).

About the facilitators

Host: Elize Hattingh is a Sustainable Growth researcher at TIPS. She has been actively involved in promoting the sustainable development agenda for more than 15 years.

Panel convener:  Gaylor Montmasson-Clair

Gaylor is a Senior Economist at TIPS which he joined in 2011. He is also a Research Fellow at the Centre for Competition, Regulation and Economic Development (CCRED) at the University of Johannesburg. He holds a Bachelor’s degree in Economics, Finance and Political Science, and a Master’s degree in International Affairs from the Institut d’Etudes Politiques (Sciences Po) of Grenoble, France.

Event details

Date:   Wednesday, 6 April 2022 

Background

Development institutions tend to work according to an established framework, which helps practitioners and funders structure and plan their actions. This traditional model is based on empirical observations and on the ground experience of how project development and support policy work in practice. Key steps include:

• defining the problem and agenda setting;
• defining the vision and objectives of the strategy;
• identifying and selecting options, and implementing actions;
• monitoring, reporting, evaluation and policy adaptation.

The above cycle describes an idealised process, which differs from "real-life" processes. Steps are sometimes taken in parallel, and within one cycle not all steps may be covered completely. Recent examination of just transition projects and project development cycles suggest that the characteristics of such projects and their development may require an expanded or amended toolbox of actions, funding and sequencing.

For example, just transition projects require expanded participatory processes. Activities to support meaningful participation may thus need to be undertaken and funded to ensure participating workers or communities are able to engage both at a substantive as well as a process level. Another example is that environmental and green solutions sought by just transition project developers may require the inclusion of an expanded view of beneficiaries, given that environmental systems (such as water sheds) do not adhere to political or community boundaries. A final example is that just transition project developers will most likely require a range of funders to become involved in the project development cycle earlier than in traditional project finance. This idea of financial sector players making deals as opposed to buying deals will require additions to the existing project development and policy support toolbox.

The webinar investigates how different countries deal with these emerging issues. In particular, the following questions will be addressed: Does participatory planning call for different policy instruments and mechanisms as well as a different policy cycle? Do just transition projects require different financial support mechanisms and instruments at different times to traditional projects? How is the scope of just transition projects (especially those seeking to address environmental degradation) different from traditional projects and what instruments, mechanisms and policy support measures can be developed.

Outline of the event     

Date: 24 March

Organisations: Trade & Industrial Policy Strategies (TIPS) and Wuppertal Institute für Climate, Environment and Energy (WI)

Enquiries: rozale@tips.org.za

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Overview

This webinar, organised in partnership with Trade and Industrial Policy Strategies (TIPS), will provide participants with a first look at findings from the International Institute for Sustainable Development (IISD) report South Africa's Energy Fiscal Policies: An inventory of subsidies, taxes and policies impacting the energy transition, presenting key takeaways and recommendations.
 
The report explores the extent to which South Africa's current energy fiscal policies are aligned with its goal to develop a robust domestic energy system that can provide low-carbon energy at a fair cost to all. It provides clear recommendations for the government to align its fiscal energy policies with its climate and energy objectives.
 
Through a panel discussion and a Q&A session, participants will be encouraged to engage in a debate on carbon tax, bailouts, and what international moves to phase out fossil fuel financing and oil and gas exploration mean for South Africa.
 
Key questions

• Exemptions to the carbon tax need to be removed - carbon tax needs to internalise the social and environmental cost of the energy system, but with practical considerations on the social impacts and the impact on Eskom's finances.
• Bailouts - although we cannot allow the energy system to fail, how do we make the sector sustainable and ensure that bailout funds are enabling a transition rather than inhibiting it?
• What do international moves around phasing out fossil fuel subsidies and oil and gas exploration mean for SA's energy sector?
• Is the tax system doing enough to take account of external costs in energy pricing?

AGENDA 

Registration

Register online: https://us06web.zoom.us/webinar/register/WN_5yhGna3LQYicnioMFvzAHg