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Tuesday, 03 November 2020

Sector Jobs Resilience Plans

The National Climate Change Response White Paper requires the development of Sector Jobs Resilience Plans (SJRPs). These plans aim to protect vulnerable groups that may lose their jobs or livelihoods as a result of climate change impacts, related either to physical effects or to the transition to alternatives.The proposals for the SJRPs, and the evidence supporting them, are presented as a suite of related documents. These are a main report:  National Employment Vulnerability Assessment: Analysis of potential climate-change related impacts and vulnerable groups; the SJRP Toolbox: Summary for policy makers; and proposals for five value chains that seem particularly likely to be affected: coal, metals, petroleum-based transport, agriculture and tourism.

National Employment Vulnerability Assessment: Analysis of potential climate-change related impacts and vulnerable groups

The SJRP Toolbox: Summary for policy makers

Sector Jobs Resilience Plan: Coal value chain

Sector Jobs Resilience Plan: Metals value chain

Sector Jobs Resilience Plan: Petroleum-based transport value chain

Sector Jobs Resilience Plan: Agriculture value chain

Sector Jobs Resilience Plan: Tourism value chain

The research for this project was conducted by Trade & Industrial Policy Strategies (TIPS) for the Departments of Environment, Forestry and Fisheries and Trade Industry, and funded by GIZ.

TIPS research team: Neva Makgetla, Nokwanda Maseko, Gaylor Montmasson-Clair and Muhammed Patel.

Exports to China have fluctuated between 9% and 12% of South Africa’s exports between 2010 and 2020. South Africa’s main exports to China comprise metal products. China is the largest emitter of greenhouse gas (GHG), for both production and consumption. This stems mainly from coal-based electricity generation and mining. While both China’s domestic and foreign policies depict a leniency towards coal-fired power generation, the country is a leading global investor in renewable energy production both domestically and abroad. At the centre of China’s climate change regulation is the issuance and monitoring of energy efficiency standards, particularly for cars.

This brief is based on a comprehensive review of China’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 India are coal, manganese, chemical wood pulp, platinum and spark-ignition engines. India is a key export partner of South Africa, accounting for 5% of exports over the 2010 to 2019 period. India’s transition towards increased consumption of domestic thermal coal and reduced thermal coal imports, combined with investments into additional renewable energy capacity, place South African coal exports at significant risk. India is a significant importer of South African coal, accounting for 53% of South African coal exports in 2019.

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.

Exports to Japan accounted for 5% of South Africa’s exports between 2010 and 2019. Production processes in Japan have been characterised by high fossil fuel use, especially following the Fukushima nuclear accident which saw nuclear power being substituted by fossil fuels. Japan’s climate change mitigation is centered on carbon capture technologies, increasing energy efficiency, and the introduction of new technologies such as hydrogen. In 2016, Japan also enforced a carbon tax on oil, gas and coal imports, and on consumption. This has, however, been inconsequential to its trading relations with South Africa.

This brief is based on a comprehensive review of Japan’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 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.

The introduction of a chrome export tax, announced by Cabinet on 21 October 2020, will bring immediate benefits to the ferrochrome industry, and also presents an opportunity for South Africa to support the development of the downstream industry. In the context of a post-COVID-19 recovery plan, industrial development is a priority and requires the use of a multiplicity of measures by the state to strengthen its industrial base.

The implementation of the export tax will mean South Africa is able to take advantage of its natural resources by giving South African ferrochrome producers a price advantage over Chinese firms.  Further, it will see the benefits of mining being utilised in support of beneficiation and potentially further downstream. This policy brief discusses the benefits of a chrome export tax, why it makes sense for South Africa as a measure to support the ferrochrome industry, and that this measure alone is not sufficient to grow the stainless steel and downstream industry – an additional set of industrial policy measures are also required.

Media release: 27 October 2020

Government moves to strengthen its industrial capacity by boosting the ferrochrome industry

Friday, 23 October 2020

Climate change and trade risk

This research project for the Department of Trade, Industry and Competition examines the vulnerability of South African trade to evolving climate change legislation. It 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. 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 research is available in a number of related documents.  A main report on The global climate change regime and its impacts on South Africa's trade and competitiveness: case studies on various sectors; detailed briefs that explore South Africa’s trade risks with different countries; and key data in Excel format. 

Main report

The global climate change regime and its impacts on South Africa's trade and competitiveness

Sector studies

Managing economic risks linked to climate change: Securing market access for South African wines

Green hydrogen: A potential export commodity in a new global marketplace

Country briefs

Climate change and trade risk: South Africa's trade with China

Climate change and trade risk: South Africa's trade with India

Climate change and trade risk: South Africa's trade with Japan

Climate change and trade risk: South Africa's trade with Russia

Climate change and trade risk: South Africa's trade with South Korea

Climate change and trade risk: South Africa's trade with the European Union

Climate change and trade risk: South Africa's trade with the United States of America

Climate change policy framework: key data (Excel spreadsheet)

South Africa: Climate change policy framework

China: Climate change policy framework

India: Climate change policy framework

Japan: Climate change policy framework

Russia: Climate change policy framework

South Korea: Climate change policy framework

European Union: Climate change policy framework

United States of America: Climate change policy famework

MEDIA

Press release: Green hydrogen - potential news export for South Africa

Engineering News 23 February 2021: TIPS research confirms business case for developing hydrogen economy

 

Business Day - 12 October 2020 by Neva Makgetla (TIPS Senior Economist)

Read online at Business Day.

Or read as a PDF.

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