Global Decarbonisation Demands Hold Hidden Benefits For SA’s Economic Growth Efforts
The Minister of Trade, Industry and Competition (the dtic), Mr Parks Tau, says South Africa recognises the immense opportunities to drive industrialisation through global decarbonisation efforts and must fully explore them for the benefit of the economy.
Green Hydrogen Commercialisation In South Africa
He led a team of officials from the dtic, to a joint briefing session of Parliament’s Portfolio Committees on Trade and Industry and Science, Technology, and Innovation to engage on South Africa’s Green Hydrogen Commercialisation Strategy and the White Paper on Electric Vehicles.
Tau told the Members of the Portfolio Committee that South Africa has committed itself to reducing greenhouse gas emission as envisaged in the national Just Energy Transition. The government made its contribution and partnered with the rest of the world to reduce carbon emissions and fight climate change.
He said South Africa has to decarbonise its own economy but also position itself to commercially benefit from the global shift to greener technologies.
“Green hydrogen presents an opportunity to export natural resources such as sunshine and wind, which South Africa has in abundance. The global demand for Green Hydrogen, presents ample industrialisation opportunities not only for South Africa but for other African countries, so we need to collaborate and integrate efforts to drive the industrialisation agenda for the continent as a whole. The speed with which we move will determine whether we are able to take full advantage of the transition or we are left behind,” he said.
The Global Shift To EVs
Linked to decarbonisation efforts is the worldwide move to Electric Vehicles, which Minister Tau described as advancing at a fast pace. Through the White Paper on Electric Vehicles and support to the automotives industry, South Africa is embracing the transition and adapting its Automotive Strategy to current global trends.
The White Paper on Electric Vehicles outlines a commitment to ensuring that the transition is not just about decarbonisation but is also leveraged for growth by deepening the automotive value chain, fostering local industry growth, and aligning with economic priorities, the approach aims to be pro-growth and pro investment.
Regarding the carbon intensity of the South African economy, Minister Tau indicated that the South African government is cognisant of the fact that some of the measures such as the Carbon Border Adjustment Mechanism introduced by the European Union, do require that we challenge them at the level of the World Trade Organisation as developing economies, as they likely to have a negative impact on our economic growth efforts.
