Displaying items by tag: Climate Change

South Africa chiefly exports agricultural products and metals to Russia. Exports to Russia account for 0.4% of South Africa’s global exports. Russia is the world’s fourth largest emitter of greenhouse gases (GHGs). Russia continues to invest in coal mining without any substantial climate change commitments. The country lacks a clear climate change mitigation plan and GHG emissions are monitored through light-touch laws, which are seldom enforced. The high-carbon intensity of South Africa’s metals production and agriculture is unlikely to be penalised in the near future. This also provides an opportunity to divert metals exports from more stringently regulated markets into the Russian market.

This brief is based on a comprehensive review of Russia’s climate change policy framework in relation to industries, as well as a review of South Africa’s climate and trade risks. It forms part of a research project for the Department of Trade, Industry and Competition examining the vulnerability of South African trade to evolving climate change legislation. The research comprises a main report on The global climate change regime and its impacts on South Africa's trade and competitiveness: A data note on South Africa's exports; case studies on various sectors; detailed briefs that explore South Africa’s trade risks with different countries; and key data in Excel format.

The reports, other country briefs and excel sheets are available at Climate change and trade risks.

South Africa’s top exports to South Korea are iron ore, coal, ferroalloys and vehicles. Exports to South Korea accounted for about 2% of South Africa’s exports over the 2010 to 2019 period. South Korea has committed to a low-carbon energy policy and has set greenhouse gas emissions reduction targets of 37% below business as usual by 2030. South Africa’s largest exports are at risk as the country’s mining exports are relatively carbon intensive and South Korea’s low-carbon energy transition intends to drastically reduce coal-powered energy generation and coal imports. 

This brief is based on a comprehensive review of India’s climate change policy framework in relation to industries, as well as a review of South Africa’s climate and trade risks. It forms part of a research project for the Department of Trade, Industry and Competition examining the vulnerability of South African trade to evolving climate change legislation. The research comprises a main report on The global climate change regime and its impacts on South Africa's trade and competitiveness: A data note on South Africa's exports; case studies on various sectors; detailed briefs that explore South Africa’s trade risks with different countries; and key data in Excel format.

The reports, other country briefs and excel sheets are available at Climate change and trade risks.

The European Union (EU) is a significant export destination for South African products. Between 2010 and 2019, exports to the EU averaged between 16% and 19% of South African exports. The main exports to the EU over this period were motor vehicles and metals. South African exports to the EU are at risk from the recently announced border carbon tax on imports within the EU from 2023. The EU has adopted a tough stance towards fossil fuels and, after years of consolidating a domestic carbon regime, the EU is beginning to pay increasing attention to leakages from imports.

This brief is based on a comprehensive review of the EU’s climate change policy framework in relation to industries, as well as a review of South Africa’s climate and trade risks. It forms part of a research project for the Department of Trade, Industry and Competition examining the vulnerability of South African trade to evolving climate change legislation. The research comprises a main report on The global climate change regime and its impacts on South Africa's trade and competitiveness: A data note on South Africa's exports; case studies on various sectors; detailed briefs that explore South Africa’s trade risks with different countries; and key data in Excel format.

The reports, other country briefs and excel sheets are available at Climate change and trade risks.

This policy brief aims to lay the ground for a just transition in South Africa’s metals value chain as it pertains to climate change only. It contributes to understanding: a) the nature of the impacts facing the value chain; b) the characteristics of the stakeholders at risks (namely workers, communities and small businesses); and c) the nature of the resilience plan which is required to ensure a just transition.

A global transition to sustainable development is under way and strengthening as a response to multiple socio-environmental crises, including the global impacts of climate change. From a trade and industrial perspective, this transition has implications on the composition and dynamics of entire value chains. This concerns what inputs are accessed, the processes that underlie production, what goods and services are produced, as well as what happens to these products post-consumption. The transition materialises through two complementary streams: the development of new, green industries and the greening of existing, traditional industries. This report aims to shed light on the trade-related risks faced by South Africa as a result of the global transition to a low-carbon economy by delving further these underlying factors and unpacking South Africa’s trade patterns from a carbon perspective

Concrete is the most manufactured product on the planet. It is the second most consumed product after water.  Unfortunately, the manufacturing of Original Portland Cement (OPC), which accounts for 98% of global cement production, is highly energy intensive and involves a chemical process of converting limestone into clinker which releases massive quantities of CO2, and currently accounts for 8% of all global greenhouse gas emissions. If cement demand increases as expected, and the industry does not embark on a low-carbon pathway, it is possible that by 2050 cement production alone could account for almost one quarter of all global greenhouse gas emissions. This research report looks at the universe of possible solutions along the cement value chain to make the industry more climate compatible.

With greenhouse gas (GHG) emissions coming to the fore of nations’ climate policy concerns, the wine industry faces a new challenge. Viniculture (grape cultivation for winemaking) is directly susceptible to climate change impacts due to grapevines being highly sensitive to the surrounding environment, such as changes in weather patterns. In addition, the industry is increasingly targeted by climate change response measures, aimed at reducing GHG emissions. Such measures are poised to significantly alter traditional methods of production. Trade-related climate change response measures, such as shifts in import-export patterns, border carbon adjustments or non-tariff barriers (such as standards), are increasingly more prevalent. Accordingly, “green protectionism”, i.e. the justification of protectionist measures under the guise of addressing climate change and other environmental goals, is also becoming more prevalent internationally.

This paper unpacks the green protectionism dynamics affecting the domestic wine value chain that stand to be a growing risk moving forward. The paper also explores the factors that make it particularly difficult and yet necessary for South African producers to adapt to this new genus of regulation.

Report produced by TIPS for the Department of Trade, Industry and Competition.

Media Article

What wine industry can do to keep its fizz amid rising threats - Business Day - 5 August 2020 by Gaylor Montmasson-Clair and Kudzabi Mataba

With greenhouse gas (GHG) emissions coming to the fore of nations’ climate policy concerns, the wine industry faces a new challenge. Viniculture (grape cultivation for winemaking) is directly susceptible to climate change impacts due to grapevines being highly sensitive to the surrounding environment, such as changes in weather patterns. In addition, the industry is increasingly targeted by climate change response measures, aimed at reducing GHG emissions. Such measures are poised to significantly alter traditional methods of production. Trade-related climate change response measures, such as shifts in import-export patterns, border carbon adjustments or non-tariff barriers (such as standards), are also increasingly more prevalent.

South Africa is the world’s sixth largest exporter of wine in volume and has not been exempt from these trade impacts. This paper unpacks the green protectionism dynamics which have increasingly impacted the domestic wine value chain and stand to be a growing risk moving forward. The paper also explores the factors that make it particularly difficult and yet necessary for South African producers to adapt to this new genus of regulation.

This report was produced by TIPS for the Department of Trade, Industry and Competition

Daily Maverick - 3 April 2020 by Gaylor Montmasson-Clair (TIPS Senior Economist)

Read online at Daily Maverick

Climate change impacts are being felt in low- and middle-income countries at an ever-increasing pace. The high dependency on climate-sensitive sectors as well as high vulnerability to climate change raise the need for quick responses and action. These climate events wreak havoc, ripping apart the fabric of societies, economies, and lives. Micro, Small, and Medium Enterprises (MSMEs) are vital components of economies and particularly vulnerable to the impacts of climate change.

This paper explores three inter-related themes: the material risks that small businesses face, the state of adapta­tion in low- and middle-income countries, and potential recommendations on a way forward. It is part of a series of background papers commissioned by the Global Commission on Adaptation.

Session 5: Carbon-intensive industries and sustainability

Session 8: Financing the sustainability transition

Session 9: Unpacking the water-energy-food nexus

Report produced by Trade and Industrial Policy Strategies for WWF-SA, South Africa. WWF received funding from the British High Commission to establish a programme to provide the South African agri-food value chain with tools and information to understand and proactively respond to climate risks in the value chain thereby supporting on-going productivity in South Africa and continued local and international market access for South African supply farms.

Should you wish to reference this paper, please do so as follows:
Zwane, M. & Montmasson-Clair, G. 2016. Climate change adaptation and agriculture in South Africa: a policy assessment. Report compiled for WWF-SA. South Africa

Climate change adaptation and agriculture in South Africa: a policy assessment

Industrial development and climate change mitigation have historically been opposed to each other. This is reflected in the industrial and climate change policy frameworks in South Africa. As a result of these two opposing frameworks and the disruptive and complex nature of the necessary transition to a low-carbon economy, the emergence of a climate change regime is seen as a threat and a risk to industrial development. Without immediate and ambitious action, the dichotomy between industrial development and climate change mitigation is moreover due to amplify. This raises the need to overcome the limited prism of analysis focused on incompatibility. This policy brief aims to contribute to filling the gap by investigating the interplay between industrial and climate change policies, the compatibility of the two frameworks and the options to manage the transition. This policy brief first argues that South Africa’s institutional arrangement and policy vision for industrial development and climate change are mainly mutually beneficial and provide an opportunity for a holistic approach. Second, the necessity for South Africa to position the country on short-term trade-offs associated with the cost of the transition is put forward. Third, the need for a strategic discovery and policy impact assessment process is ascertained.

A global benchmarking of policy instruments for effective climate change mitigation demonstrates the need for a mix of policy measures. The optimal policy package is characterised by the complementarity of its policy components, and the recognition of context: the appropriateness of the mix of measures varies from country to country depending on unique sets of climate change challenges as welll as other national objectives. South Africa is considering a number of policy options for climate mitigation: a carbon tax, desired emissions reductions outcomes, and required energy management plans. To determine the optimal policy package, an assessment of the range of policy instruments is needed, particularly in understanding how these instruments can be used together and in which cases they are redundant or suboptimal and burdensome.

Discussion document prepared for the Climate Change Expert Group (CCXG) Global Forum held in Paris in March 2013.

This paper conducts a case study focused on the state of the tracking of public and private climate-related inflows to South Africa. It investigates South Africa's strategy on climate finance (tracking) and describes South Africa's project-based approach to tracking. It also explores what data on public (domestic and foreign) and private climate finance inflows are available in South Africa and how information is collected. It also highlights the challenges with regards to tracking climate finance in South Africa and formulates recommendations.

See http://www.oecd.org/env/cc/ccxgglobalforum-march2013.htm

The need to address sustained economic growth while simultaneously preserving the natural environment presents important policy challenges for countries such as South Africa. Growing concerns about climate change, a loss of biodiversity, and the poor management of natural resources such as forests and water all indicate that the benefits of growth – and its ability to deliver social well-being – must be increasingly considered in light of environmental costs.

Some of the most innovative instruments focused on balancing growth and environmental impact are originating in developing countries. Payment for Ecosystem Services (PES) is one such instrument, used most commonly in Latin America, which is gaining increased traction. Through the use of monetary and in-kind payments, PES incentivises landowners and communities to maintain intact ecosystems, restore the natural environments of degraded land, and use natural resources sustainably. PES recognises that landowners and communities face opportunity costs in foregoing certain economic activities to preserve and restore natural environments and that compensation is necessary to make these costs acceptable, particularly for poor people. The justification for these payments is that preserved ecosystems can provide important natural services, such as regulating the hydrological cycle or sequestering carbon. sustainable land use management can bring strong economic returns. A study by Blignaut and Mander (2010), looking at five past watershed restoration and reforestation projects in South Africa, estimates that conservation in these areas
has provided a monetary annual return equivalent to R116 to R220 per hectare per year over periods of about 30 years compared to equivalent estimated costs of watershed restoration totaling between R21 to R88 per hectare per year.

Climate and trade issues lie at the intersection of two of the world's most contested, delayed and important multilateral negotiations. Climate change under the auspices of the United Nations Framework Convention on Climate Change (UNFCCC) and international trade as regulated by the World Trade Organization (WTO). This paper is a scoping assessment of the inter-relationship between international trade and climate change negotiations as it affects policy development in South Africa. The paper highlights two key variants of measures which pose a challenge to both these negotiations, specifically border carbon adjustments and the liberalization of trade in environmental goods and services.

The paper finds that while free trade in green industry products may be encouraged under a global climate agreement, it should not be reasonably required. In addition, for Border Carbon Adjustments (BCAs) under the UNFCCC, the authors recommend that BCAs be considered an issue best left to the WTO to judge as fair or not. At the same time, the authors propose a multilateral climate agreement under the UNFCCC which considers one (or all) of the following three agreements/provisions to mitigate the negative impact of response measures on non-Annex 1 countries:

• Exemption of Least-Developed Countries from BCAs;
• Inclusion of non-Annex 1 countries in a global carbon trading scheme on the basis of no-lose targets (which economic modelling suggests almost totally offsets any negative trade impact of carbon pricing on exports); or
• Provision made for an “effectively comparable” or “minimum effort” carbon price, whose implementation in a country that is a signatory of the Convention would be acknowledged and treated as a Nationally Appropriate Mitigation Action (NAMA). A global deal on climate change should then allow for Non-Annex 1 countries to be exempted from the imposition of any unilateral BCAs by other signatories of the Convention, provided they meet the “minimum effort” requirement for carbon pricing.

The construction sector has a key role to play in greenhouse gas (GHG) emissions reductions. Not only can firms in the sector, by using less energy-intensive and polluting strategies and techniques, contribute to this reduction, these firms can also encourage clients to utilize such technologies. The construction sector encompasses a range of segments; the building sector with primary building work demolitions, maintenance, repairs and alterations and heavy construction work. Typically, however, the construction sector is seen as encompassing residential building (houses and residential property), non-residential building (industrial buildings) and civil works (or civil engineering). As noted in the economic sector review of the construction industry, the building sector dominates. This segment accounted for 62.5% of all construction activities in value terms in 2009.