SUMMARY: The report examines the risks associated with a transition towards a low-carbon economy for South Africa’s government, municipalities, companies and financial institutions. The analysis not only quantifies the risks of South Africa’s transition but tries to forecast some potential benefits. The report also outlines the measures that South Africa and its partners can take to reduce climate-transition risk and avoid potential economy-damaging risk concentrations, and in so doing reduce the costs associated with the decarbonisation of the South African economy.
KEY FINDING / RECOMMENDATIONS: Several significant findings emerge, et al, the cumulative impact of a global low-carbon transition between 2013 and 2035 could be more than $120 billion in present value terms; 75% of the risk and potential impact is due to factors, policies, and events, beyond the control of the South African government; but South Africa can still mitigate much of the climate-change risk if it urgently develops the fiscal, financial and policy tools required to shift transition risk away from parties without the capacity to bear it and to capture transition-related upside.