Sustainable Growth

Displaying items by tag: Climate Change

As the reality of a coal transition and coal power decommissioning draw nearer, South Africa’s just transition plan is both urgent and glaringly absent. There is a pressing need to manage the impacts of the transition on workers and local economic development, particularly in coal-dependent regions and affected communities. A credible fact base is required, from which to make appropriate and broadly supported decisions. In this conceptual clearing, several specific political consensuses must be brokered to enable policy design and implementation as well as investment for a green and just transition. This policy brief speaks to the current policy vacuum, proposing steps to address it. First, it considers the implications of the coal transition for employment in South Africa, with reference to national policy and available research. It then seeks to characterise the key issues, points of contestation, and the current just transition/ employment policy vacuum. Finally, recommendations for the facilitation of shared understanding and consensus-building are outlined.

Dowload Policy Brief or read online

  • Year 2021
  • Author(s) Lauren Hermanus (Adapt), Gaylor Montmasson-Clair (TIPS)
Published in Policy Briefs

Opportunities to develop the lithium-ion battery value chain in South Africa

The world of mobility is rapidly changing. The market for electric vehicle (EVs), in all their forms, is growing exponentially. Combined with technological disruptions in the energy space, the rise of EVs puts battery technologies at the core of sustainable development. Multiple technologies and chemistries, with their respective advantages and shortcomings, are competing in a market currently dominated by lithium-ion batteries (LIBs). Both South Africa’s government and industry have indicated their intention to position the local value chain as a key player in the mobility of the future. This is critical to ensure a just transition to e-mobility which would notably preserve, if not increase, job creation. Indeed, South Africa hosts a vibrant automotive manufacturing value chain. Like in the rest of the world, the domestic industry, however, produces internal combustion engine vehicles and components.

This research project explores the opportunities for South Africa to have a role in the LIB value chain. The main report and policy brief were prepared by TIPS on behalf of the Low Carbon Transport - South Africa (LCT-SA) Project. The project was initiated and funded by the United Nations Industrial Development Organisation (UNIDO). The TIPS team are: Gaylor Montmasson-Clair, Lesego Moshikaro and Lerato Monaisa. It was overseen by a Steering Committee comprised of Ashanti Mogosetsi (UNIDO), Marie Blanche Ting (UNIDO), Gerhard Fourie (Department of Trade, Industry and Competition – the dtic), Hiten Parmar (uYilo), Jenitha Badul (Department of Environment, Forestry and Fisheries – DEFF), Shahkira Parker (DEFF), Bopang Khutsoane (Department of Transport – DoT), Marleen Goudkamp (DoT), Minnesh Bipath (South African National Energy Development Institute – SANEDI), and Tebogo Snyer (SANEDI). Phillip Ninela (the dtic), Umeesha Naidoo (the dtic), and Mandisa Nkosi (UNIDO) acted as an internal technical task team.

Download Main Report or read report online

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Media

Press release: Lithium-ion batteries offer an electrifying opportunity for South Africa

Published in Projects

The world of mobility is rapidly changing. The market for electric vehicle (EVs), in all their forms, is growing exponentially. Combined with technological disruptions in the energy space, the rise of EVs puts battery technologies at the core of sustainable development. Multiple technologies and chemistries, with their respective advantages and shortcomings, are competing in a market currently dominated by lithium-ion batteries (LIBs).

Both South Africa’s government and industry have indicated their intention to position the local value chain as a key player in the mobility of the future. This is critical to ensure a just transition to e-mobility which would notably preserve, if not increase, job creation. Indeed, South Africa hosts a vibrant automotive manufacturing value chain. Like in the rest of the world, the domestic industry, however, produces internal combustion engine vehicles and components. This policy brief explores the opportunities for South Africa to have a role in the LIB value chain.

Background

This project comprises a main report and policy brief prepared by TIPS on behalf of the Low Carbon Transport - South Africa (LCT-SA) Project. The project was initiated and funded by the United Nations Industrial Development Organisation (UNIDO). The TIPS team are: Gaylor Montmasson-Clair, Lesego Moshikaro and Lerato Monaisa. It was overseen by a Steering Committee comprised of Ashanti Mogosetsi (UNIDO), Marie Blanche Ting (UNIDO), Gerhard Fourie (Department of Trade, Industry and Competition – the dtic), Hiten Parmar (uYilo), Jenitha Badul (Department of Environment, Forestry and Fisheries – DEFF), Shahkira Parker (DEFF), Bopang Khutsoane (Department of Transport – DoT), Marleen Goudkamp (DoT), Minnesh Bipath (South African National Energy Development Institute – SANEDI), and Tebogo Snyer (SANEDI). Phillip Ninela (the dtic), Umeesha Naidoo (the dtic), and Mandisa Nkosi (UNIDO) acted as an internal technical task team.

See Main Research Report: Opportunities to develop the lithium-ion battery value chain in South Africa.

  • Year January 2021
  • Author(s) Gaylor Montmasson- Clair, Lesego Moshikaro and Lerato Monaisa (TIPS)
Published in Policy Briefs

The world of mobility is rapidly changing. The market for electric vehicle (EVs), in all their forms, is growing exponentially. Combined with technological disruptions in the energy space, the rise of EVs puts battery technologies at the core of sustainable development. Multiple technologies and chemistries, with their respective advantages and shortcomings, are competing in a market currently dominated by lithium-ion batteries (LIBs).

Both South Africa’s government and industry have indicated their intention to position the local value chain as a key player in the mobility of the future. This is critical to ensure a just transition to e-mobility which would notably preserve, if not increase, job creation. Indeed, South Africa hosts a vibrant automotive manufacturing value chain. Like in the rest of the world, the domestic industry, however, produces internal combustion engine vehicles and components. This research report explores the opportunities for South Africa to have a role in the LIB value chain.

Background

This project comprises a main report and policy brief were prepared by TIPS on behalf of the Low Carbon Transport - South Africa (LCT-SA) Project. The project was initiated and funded by the United Nations Industrial Development Organisation (UNIDO). The TIPS team are: Gaylor Montmasson-Clair, Lesego Moshikaro and Lerato Monaisa. It was overseen by a Steering Committee comprised of Ashanti Mogosetsi (UNIDO), Marie Blanche Ting (UNIDO), Gerhard Fourie (Department of Trade, Industry and Competition – the dtic), Hiten Parmar (uYilo), Jenitha Badul (Department of Environment, Forestry and Fisheries – DEFF), Shahkira Parker (DEFF), Bopang Khutsoane (Department of Transport – DoT), Marleen Goudkamp (DoT), Minnesh Bipath (South African National Energy Development Institute – SANEDI), and Tebogo Snyer (SANEDI). Phillip Ninela (the dtic), Umeesha Naidoo (the dtic), and Mandisa Nkosi (UNIDO) acted as an internal technical task team.

See Policy Brief: Opportunities to develop the lithium-ion battery value chain in South Africa.

Published in Climate Change

This case study focuses specifically on the emerging export opportunities for South Africa in the development of green hydrogen. This refers to hydrogen that is produced through the process of electrolysis that is combined with a renewable energy source of power. While green hydrogen development has gone through a number of historical waves of interest, the current momentum is being driven globally, with a number of countries developing hydrogen roadmaps and strategies to capitalise domestically and in the global marketplace.

It is part of a 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. 

These reports are available here: Climate change and trade risk.

 

 

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  • Year 2020
  • Organisation TIPS
  • Author(s) Muhammed Patel
  • Countries and Regions South Africa
Published in Climate Change

Presentations

Nick Robins, Professor in Practice – Sustainable Finance, Grantham Research Institute, London School of Economics: Just Transition Welcome and Introduction

Media

ESI Africa 20 January 2021: How to finance the just energy transition in South Africa and India

Engineering News 19 January 2021 Terrence Creamer: Project launched to define role of finance in South Africa and India's 'just transitions'

Ensuring the transition to net zero and resilient economies is just and inclusive has never been more important as climate action builds momentum and the urgent need for a green and just recovery from COVID-19 arises.

South Africa and India, two of the largest coal-dependent emerging economies, are beginning to explore how to ensure no one is left behind in the transition, particularly in coal-dependent regions, and the most vulnerable can access emerging opportunities including new quality jobs in net zero sectors.

It is clear that financial institutions have a critical role to play in helping achieve a just transition in both countries - more practical guidance is now needed to signal where financing is needed and how it can be enabled by specific policy, market and regulatory mechanisms.

The Just Transition Finance Roadmaps in South Africa and India project will build on existing local processes and encourage tangible action, particularly on the road to COP26. The following partners are involved: Trade & Industrial Policy Strategies, National Business Initiative, Observer Research Foundation, LSE Grantham Research Institute on Climate Change and the Environment, and Harvard Kennedy School’s Initiative for Responsible Investment, with support from the National Institute of Public Finance and Policy.
 
This project has been catalysed with funding from CDC Group.

Agenda

14.30-14.40 Welcome and Project Launch: Nick Robins, Professor in Practice – Sustainable Finance, Grantham Research Institute, London School of Economics

14.40-14.50 Fireside chat: Nick O’Donohoe, Chief Executive Officer, CDC Group in conversation with Nick Robins

14.50-14.55 Opening remarks: What is the role of finance in enabling a just transition in South Africa? Joanne Yawitch, Chief Executive Officer, National Business Initiative

14.55-15.00 Opening remarks: What is the role of finance in enabling a just transition in India? Rathin Roy, Managing Director - Research and Policy, Overseas Development Institute

15.00-15.35 Panel discussion

Moderator: David Wood, Director of the Initiative for Responsible Investment , Harvard Kennedy School

• Amal-Lee Amin, Climate Change Director, CDC Group
• Rudi Dicks, Board member, Trade & Industrial Policy Strategies
• Royston Braganza, Chief Executive Officer, Grameen Capital India

15.35-15.55 Q&A session

15.55-16.00 Closing remarks: Suranjali Tandon, Assistant Professor, National Institute of Public Finance and Policy


Published in Launches

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.

Published in Climate Change

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.

Published in Climate Change

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.

Published in 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.

Published in Climate Change

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.

Published in Climate Change

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.

Published in Climate Change

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.

  • Year 2020
  • Author(s) Gaylor Montmasson-Clair (TIPS)
Published in Policy Briefs

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

  • Year 2020
  • Organisation TIPS
  • Author(s) Gaylor Montmasson-Clair (TIPS)
  • Countries and Regions South Africa
Published in Climate Change

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.

  • Year 2020
  • Organisation TIPS
  • Author(s) Sandy Lowitt (TIPS)
  • Countries and Regions South Africa
Published in Climate Change

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

 

  • Year 2020
  • Organisation TIPS for the Department of Trade, Industry and Competition
  • Author(s) Gaylor Montmasson-Clair and Kudzai Mataba (TIPS)
  • Countries and Regions South Africa
Published in Climate Change

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

  • Year 2020
Published in Climate Change

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

Read online at Daily Maverick

Published in TIPS In the News

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.

  • Year 2019
  • Organisation TIPS, Caribbean Natural Resources Institute, Global Commission on Adaptation
  • Author(s) Gaylor Montmasson-Clair, Muhammed Patel, Shakespear Mudombi (TIPS); Sasha Jattansingh, Ainka Granderson, Nicole Leotaud (Caribbean Natural Resources Institute)
Published in Climate Change

Session 5: Carbon-intensive industries and sustainability

  • Year 2017
  • Organisation University Business School, Panjab University, Chandigarh, India
  • Author(s) Pooja Pal
  • Countries and Regions India
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