Displaying items by tag: Just transition

This working paper unpacks the impacts of a transition away from coal on affected communities in South Africa. It takes a multi-layered approach highlighting the economic, social, and environmental impacts coal has had to date and the implications of a transition on communities. Sections 2, 3 and 4 discuss the economic, socio-economic and environmental impacts of coal-related activities and their closure on communities. Section 5 concludes with policy implications.

This paper argues that South Africa needs to mainstream climate change into its National Development Plan (and Sustainable Development Goals), by advancing i) climate resilient development  through several pathways, including; ii) South Africa’s Nationally Determined Contribution commitment to a low-carbon economy; iii) renewable energy and transition to a low-carbon economy; iv) climate change adaptation and resilience; and v) financing a  just transition to renewable energy. The paper also discusses the impact of the European Union’s Carbon Border Adjustment Mechanism on South Africa’s competitiveness and climate resilient developmet and looks at the impact of climate change in Africa. It concludes with some policy recommendations on what can South Africa, BRICS and other developing countries can do to support their strategies towards climate resilient development in a way that is socially just and fair.

Petrol stations are an important part of South Africa’s fossil fuel-powered economy, providing liquid fuels for more than 12 million cars, delivering fuels to power heavy machinery for industrial and agricultural use, and employing more than 140 000 people across the country. This policy brief aims to understand petrol stations in South Africa, and in particular the people who work there. With the transition to a low-emissions economy underway, these workers are vulnerable to job losses due to the shift to electric vehicles. As such, it is important to understand who these workers are, what skills they have, as well as the resources they possess to chart the least disruptive way forward as part of a just transition. This brief looks at the economics of petrol stations in value addition, contribution to GDP and employment. It provides a profile of the workers, looking at employment, educational attainments, as well as financial resources and access to social networks. It also briefly considers some of the decisions that must be made in the coming years.

Improving the governance of the transition to a a low-emissions economy, across spheres of government and sectors, means local risks and opportunities must be foregrounded. In addition, the local government toolbox for advancing a just transition – the policies, regulations, functions and processes – must be characterised and interrogated even as these tools are themselves in flux. This report identifies the multilevel governance implications for national and provincial government to better support local transitions. While the focus is on South Africa’s coal region, there is also broader relevance and applicability across the country.

It is a collaboration between two initiatives. Trade & Industrial Policy Strategies (TIPS), with the National Labour and Economic Development Institute (NALEDI), in collaboration with Peta Wolpe, and supported by groundWork, worked together on fostering a just transition in South Africa’s coalfields, with a focus on Emalahleni and Steve Tshwete. This was funded by the United Kingdom Partnering for Accelerated Climate Transitions (UK PACT). The Just Urban Transitions project is led by Adapt and funded by Agora Energiewende, focusing on subnational development and implementation of South Africa's just transition.

This report unpacks the historical trajectory of coal-dependent economies in Mpumalanga and charts possible futures by analysing potential economic opportunities. It covers the past and present economic structure of coal-based municipalities in South Africa, and unpacks existing assets and liabilities. It then looks forward by diving into possible economic activities that could provide the basis for diversification and rejuvenation, and concludes with policy implications.

RELATED RESEARCH

Beyond Coal: Opportunities to diversity the economies of Emalahleni and Steve Tschwete local municipalities

People's Voices: Participatory justice for a just tansition in South Africa

The report unpacks the historical trajectory of coal-dependent economies in Mpumalanga and charts possible futures by analysing potential economic opportunities. It covers the past and present economic structure of coal-based municipalities in South Africa, and unpacks existing assets and liabilities. It then looks forward by diving into possible economic activities that could provide the basis for diversification and rejuvenation, and concludes with policy implications.

It is a collaboration between two initiatives. Trade & Industrial Policy Strategies (TIPS), with the National Labour and Economic Development Institute (NALEDI), in collaboration with Peta Wolpe, and supported by groundWork, worked together on fostering a just transition in South Africa’s coalfields, with a focus on Emalahleni and Steve Tshwete. This was funded by the United Kingdom Partnering for Accelerated Climate Transitions (UK PACT). The Just Urban Transitions project is led by Adapt and funded by Agora Energiewende, focusing on subnational development and implementation of South Africa's just transition.

Improving the governance of the transition to a a low-emissions economy, across spheres of government and sectors, means local risks and opportunities must be foregrounded. In addition, the local government toolbox for advancing a just transition – the policies, regulations, functions and processes – must be characterised and interrogated even as these tools are themselves in flux. This report identifies the multilevel governance implications for national and provincial government to better support local transitions. While the focus is on South Africa’s coal region, there is also broader relevance and applicability across the country.related research

RELATED RESEARCH

Local government toolbox for a just energy transition in South Africa

People's Voices: Participatory justice for a just tansition in South Africa

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

A just transition finance roadmap aims to articulate a new end vision for the financial ecosystem which perfectly aligns lending and investment actions to idealised government environmental and social policies which support a net zero economy. Once a final vision is articulated, the roadmap provides routes and  signposts to arrive at such a destination. This first iteration of a just transition finance roadmap for South Africa, is an initial attempt to understand the nature of the challenge of just transition finance in South Africa, what a system level change to the financial eco system could look like and an action agenda for the next four years to begin moving towards such a vision.

The potential for biomass supply chains to provide alternative employment opportunities for people currently employed in coal trucking is vast. Side tipper trucker jobs are a low-hanging fruit as they are used both for the transportation of coal and the largest source of sustainable biomass in South Africa, namely invasive alien plants. Almost 75% of the current coal jobs could be directly transitioned to biomass transport via side tipper trucks. In addition, the biomass supply chains considered in this study could supply over 600 superlink driver jobs. About 480 superlink trucks would be required, which means some of the current coal side tipper trailers would have to be converted to flatbeds. More than 300 tanker driver jobs could furthermore be provided by the biomass supply chain.

This report 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 an 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.

Download full report or read online

Exploring alternative options for coal truckers in a biomass supply chain - Highlights

The energy shift will result in a reduction in coal use, and thus a reduction in coal transportation, which currently provides employment for approximately 4000 truck drivers. Given South Africa's large biomass feedstock base and parallels in coal and biomass hauling operations, coal transporters may be able to find alternate livelihoods by hauling sustainable biomass for emerging green industries such as manufacturing sustainable aviation fuels (SAF). Establishing nationwide biomass supply chains could result in nearly 7 500 trucking jobs, over half of  that (about 3 800) in coal producing regions, providing coal haulers an alternative option.

Almost 3 000 trucker jobs in the coal regions could be for side tipper truck drivers, meaning that almost 75% of the current coal hauling jobs could be directly transitioned to biomass hauling. In addition to the jobs saved in refueling and truck maintenance, biomass supply chains in coal districts could result in the creation of approximately 400 support jobs.

More details can be found in the infographic below, and the full report.

Dowload or view infographic online

.

Many in the Global South and some in the Global North cannot afford clean and sustainable energy, and many live in a state of energy poverty. A just energy transition is a chance for economies to start again with a clean slate and do things differently. In the Global South, where many cities are growing and where generation is inadequate, the opportunities abound. This policy brief argues that energy poverty and access must be brought boldly into the Just Transition debate. Only then is change possible. The brief offers an overview of current understanding of what constitutes a just energy transition and what is meant by energy poverty and access by giving a snapshot of the European Union and Sub-Saharan Africa context. The brief concludes with outlining some of the policy gaps.

This working paper begins the process of framing a just transition narrative in the context of the South African financial system. It provides a brief overview of the current financial system in South Africa focusing on the structural fit of the finance system to the real economy, specifically in relation to small start-up companies, new entrepreneurial activities and new (often untested) technology roll-outs which characterise climate action and social inclusion transition activity. It looks at current local thinking about the system-level demands of a sustainable transition of the financial sector at a high and conceptual level. It then presents a framework and approach to understanding the financing needs of a just transition in South Africa. 

While the concept of a just transition dates back half a century, only recently has it entered the mainstream discourse. Its scope and application remain a source of debates and disagreements, with the term being already co-opted by various parties. The policy interventions required to effect and finance a just transition in a given context are similarly yet to be determined. This working paper aims to contribute to unpacking the meaning of a just transition and the tools to foster it. It looks at the three key dimensions of a just transition: procedural justice, distributive justice and restorative justice. It then reviews the policy toolbox for each of the three dimensions.

This policy brief makes the case for a gender just transition in South Africa. It does so by: a) explaining why a gender just transition is vital by discussing the gendered impact of climate change; b) locating South African women within the broader society and within the economy; and c) providing a brief idea of what a gender just transition would look like.

See How the state can support women who work - Article by Baba-Tamana Gqubule and Nokwanda Maseko (TIPS) in New Frame.

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

This policy briefs aims to provide an overview of the characteristics of the vulnerable groups in the petroleum-based transport value chain; an understanding of the dimensions of the impact and expected timeframes for the transition; and an overview of the proposed resilience plans. It first looks at the characteristics of those who are employed in the value chain, or are involved in business. It then explores the dimensions of the impact and the timeframes as they are currently available.

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

Muhammed Patel - TIPS

Presentation: National Employment Vulnerability National Employment VulnerabilityAssessment (NEVA) and Sector Jobs Resilient Plans (SJRP): Coal value chain

Report: Sector Jobs Resilience Plan: Coal value chain

Pulane Mafoea Nkalai - Sam Tambani Research Institute

Presentation: Energy Mix choices and the protection of workers’ interests in South Africa

Michelle Cruywagen, Megan Davies and Mark Swilling - Centre for Complex Systems in Transition, Stellenbosch University 

Presentation: Estimating the cost of a just transition in South Africa’s coal sector: Protecting workers, stimulating regional developmentand accelerating a low carbon transition

Report: Estimating the cost of a just transition in South Africa’s coal sector: Protecting workers, stimulating regional developmentand accelerating a low carbon transition

David Hallowes - groundWork

Presentation: Down to Zero

Report: Down to Zero - The politics of just transition (David Hallowes and Victor Munnik 2019)

Gemma Gatticchi, Bloomberg. 4 November 2020: Renewable energy drive threatens 120,000 South African jobs  

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.

South Africa, a carbon-intensive economy, has initiated a transition to a more sustainable development pathway. While this is centred on the energy sector, the transition is an economy-wide transformation. In a highly unequal society like South Africa, the need for a just transition which would empower vulnerable stakeholders has emerged as an imperative. Yet tensions remain, which hinder an inclusive process and outcomes. Part of the early process is forming a unified understanding and pathway that is inclusive and just. What do stakeholders mean when they talk about a just transition? How can South Africa achieve a just transition? This dialogue explores stakeholder perspectives from government, the private sector, the labour movement and civil society. It builds on a first dialogue hosted on 7 July (see recording below).

About the Speakers

Tracey Davies is the Executive Director of Just Share, a non-profit shareholder activism organisation. She is admitted as an attorney in South Africa, and is a renowned expert on responsible investment, shareholder activism, and corporate governance and transparency in South Africa.

Ashraf Kariem is Chief Expert Economy in the National Planning Commission (NPC) secretariat, within the Department of Planning, Monitoring and Evaluation (DPME). He was part of the team overseeing the NPC's just transition dialogue process.

Jacklyn Cock is a professor emeritus in the Department of Sociology at the University of the Witwatersrand and an Honorary Research Professor in the Society, Work and Development Research Unit (SWOP). She has written extensively on environment, gender and militarisation issues.

Sherman Indhul is the Executive Manager: Corporate Sustainability at Transnet. His experience over the past 15 years in the public and private sectors has led to a focus on sustainability, and specifically on climate change. He notably sits on the Steering Committee of the National Business Initiative's (NBI) Just Transition Pathways Project.

Muhammed Patel is an Economist at TIPS. He has experience in the coal and petrochemical value chains. He is the lead author of the National Employment Vulnerability Assessment (NEVA) and Sector Jobs Resilience Plan (SJRP) for the coal value chain in South Africa.

About the Facilitator

Gaylor Montmasson-Clair is a Senior Economist at TIPS, where he leads work on Sustainable Growth. He 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.

Please register: https://zoom.us/webinar/register/WN_wgNwl1ZwTpmlou9Vpl3JEQ

This webinar builds on a first dialogue hosted on 7 July. 

South Africa aims to transition to an inclusive green economy, combining economic development, social progress and environmental preservation. Both the economy and society remain, however, highly unsustainable. Targeting the transition to an inclusive green economy therefore signifies a massive and disruptive shift, commanding a new model of development. Industrial policy is core to this process, notably to ensure a “just transition” and manage a balancing act, consisting of maximising the benefits of the transition and minimising the risks associated with not transitioning; but in line with South Africa’s capabilities to minimise the short-term trade-offs and threats. This requires a careful alignment of South Africa’s industrial policy with the inclusive green economy paradigm to support the country’s green industrial development. Ultimately, this requires the shift from industrial policy to green industrial policy. To inform such a transformation, this report reviews South Africa’s industrial policy, from an inclusive green economy lens. It investigates the extent to which South Africa’s industrial policy is responding to, if not driving, the country’s transition.

The report was produced by the United Nations Environment Programme (UNEP) with funding from the European Union in the framework of the project Inclusive Green Economy Policy Making for SDGs.