TIPS, in collaboration with Green Economy Coalition, is hosting the second of four Green Recovery Dialogues webinars: Unpacking South Africa's Road to Building Back Better, Fairer and Greener - The EU’s Green New Deal and its implications for South Africa. Wednesday 6 April 10:00. Register online: . 

Business Day - 31 January 2022 by Neva Makgetla (TIPS Senior Economist)

Read online at Business Day

Or read as a PDF

Engineering News - 31 January 2021 by Marleny Arnoldi

Read online at Engineering News

Download the report here: https://www.iisd.org/publications/south-africa-energy-subsidies

Watch the video here: https://youtu.be/lIII0Tu7D-E

<iframe width="560" height="315" src="/

Overview

This webinar, organised in partnership with Trade and Industrial Policy Strategies (TIPS), will provide participants with a first look at findings from the International Institute for Sustainable Development (IISD) report South Africa's Energy Fiscal Policies: An inventory of subsidies, taxes and policies impacting the energy transition, presenting key takeaways and recommendations.
 
The report explores the extent to which South Africa's current energy fiscal policies are aligned with its goal to develop a robust domestic energy system that can provide low-carbon energy at a fair cost to all. It provides clear recommendations for the government to align its fiscal energy policies with its climate and energy objectives.
 
Through a panel discussion and a Q&A session, participants will be encouraged to engage in a debate on carbon tax, bailouts, and what international moves to phase out fossil fuel financing and oil and gas exploration mean for South Africa.
 
Key questions

• Exemptions to the carbon tax need to be removed - carbon tax needs to internalise the social and environmental cost of the energy system, but with practical considerations on the social impacts and the impact on Eskom's finances.
• Bailouts - although we cannot allow the energy system to fail, how do we make the sector sustainable and ensure that bailout funds are enabling a transition rather than inhibiting it?
• What do international moves around phasing out fossil fuel subsidies and oil and gas exploration mean for SA's energy sector?
• Is the tax system doing enough to take account of external costs in energy pricing?

AGENDA 

Registration

Register online: https://us06web.zoom.us/webinar/register/WN_5yhGna3LQYicnioMFvzAHg

This paper seeks to add to the discourse on climate change mitigation in the petrochemical industry in South Africa, through a broad evaluation of the mitigation interventions available. For the purposes of the analysis, the scope is confined to the base and performance chemicals that are produced from the petrochemicals complex and does not include liquid fuels. It presents an overview of the petrochemical value chain in South Africa and the climate challenges within the value chain. It then considers the current available mitigation measures in terms of their technological development, barriers and rollout in South Africa. The interventions include energy efficiency measures, which cover combined heat and power, carbon capture, and nitrogen oxide mitigation technologies. Feedstock substitution options are also considered, which relate to increasing the use of natural gas, biomaterials and green hydrogen. Circular economy interventions which relate to the recycling of plastic and rubber are also discussed. The benefits, risks and implementation requirements for various stakeholders are then explored.

This research 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.

Related research

Policy Brief: Employment metrics in South Africa’s electricity value chains

Business Day - 18 January 2022 by Neva Makgetla (TIPS Senior Economist)

Read online at Business Day

Or read as a PDF

The Carbon Border Adjustment Mechanism (CBAM) is a headline policy initiative of the European Green Deal. One of the drivers of the CBAM is that carbon emissions should have a price, and the CBAM is intended to “align the carbon price on imports with that applicable within the EU”. This policy brief provides an initial assessment of the CBAM and its implications for the global economy and South Africa-EU trade. South Africa’s trade with the EU will be greatly affected by the CBAM and other EU climate regulations. The South African government and exporters to the EU need to put in place measures and mechanisms to ensure trade resilience in a low-carbon global economy. These measures must have the just transition at their core to ensure that South Africa’s move to a low-emissions economy is inclusive, just and equitable, and protects communities and workers so they are not adversely affected.

The brief was funded by the Department of Trade, Industry and Competition. It draws on a report by TIPS, Tralac and Trade Advisory on The European Green Deal: Context, challenges and opportunities for South African SMEs operating in the green economy, funded by the European Union and the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU).

Other Policy Briefs

Sustainable complexity: Managing export regulations in the European Green Deal

This policy brief is an initial assessment of the European Green Deal, examining what is currently known about the risks it creates for South African exporters. It provides a summary of what regulatory changes are expected in the EGD, what risks these changes pose for South African firms, and what can be done to begin preparing for these changes.

The brief was funded by the Department of Trade, Industry and Competition. It draws on a report by TIPS, Tralac and Trade Advisory on The European Green Deal: Context, challenges and opportunities for South African SMEs operating in the green economy, funded by the European Union and the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU).

Other Policy Briefs

European Green Deal: The Carbon Border Adjustment Mechanism and implications for South African and European Union trade