- South Africa’s Trade & Industrial Policy Strategies (TIPS) supports policy development through research and dialogue.
- They have released a paper entitled ‘A policy primer for green industrialisation in South Africa’ which attempts to address the challenges facing the country’s road to green industrialisation which advocates that phasing out fossil fuel subsidies, implementing green manufacturing incentives, developing supportive procurement policies, and enhancing skills development are essential measures that can accelerate progress towards an inclusive green economy.
The paper concludes:
The transition towards a low-carbon economy presents both challenges and opportunities for South Africa. As highlighted, the country’s economic structure, heavily reliant on carbon-intensive industries, faces significant risks amid global decarbonisation efforts and increased green competitiveness. And the country’s road to green industrialisation is not without obstacles. While South Africa is integrated into the global economy and committed to international climate agreements, achieving a balance between mitigating climate impacts and ensuring a just transition for vulnerable communities is critical. The interplay between green industrial policy, global trade dynamics, and domestic socio-economic realities requires a strategic, inclusive, and forward-looking approach.
South Africa’s dependency on fossil fuels, particularly coal, has contributed to economic development but at great social and environmental costs. By contrast, the path towards green industrialisation should focus on protecting and improving livelihoods. Efforts to diversify economic activities and invest in emerging green industries, such as renewable energy, battery storage, and hydrogen value chains, are steps in the right direction. However, dedicated policy measures, such as public procurement, R&D investments, green financing, and technological partnerships, among other interventions, are vital to fully realise the potential of these new opportunities and transform all economic activities.
In the short term, targeted policy interventions can act as catalysts for driving this transition. Phasing out fossil fuel subsidies, implementing green manufacturing incentives, developing supportive procurement policies, and enhancing skills development are essential measures that can accelerate progress towards an inclusive green economy. Moreover, securing South Africa’s competitiveness requires fostering domestic demand for green products and services, enhancing mutually reinforcing value chain linkages, and leveraging opportunities within continental and international trade frameworks.
Ultimately, the success of South Africa’s low-carbon transition depends on coordinated efforts across government, industry, and civil society to create a resilient, sustainable, and inclusive economy. By strategically and actively aligning policy frameworks, building institutional capacities, and driving socio-economic investments, South Africa can lead the way in realising a just, green industrial future.
Link to the full paper HERE TIPS_Policy_A_policy_primer_for_green_industrialisation_in_South_Africa_2024
Author: Bryan Groenendaal
