{"id":264177,"date":"2025-10-21T16:52:45","date_gmt":"2025-10-21T16:52:45","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=264177"},"modified":"2025-10-22T04:07:22","modified_gmt":"2025-10-22T04:07:22","slug":"sa-inc-should-drive-its-climate-ambitions-through-low-carbon-green-industrialisation","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/sa-inc-should-drive-its-climate-ambitions-through-low-carbon-green-industrialisation\/","title":{"rendered":"SA Inc should drive its climate ambitions through low-carbon green industrialisation"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

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The global climate agenda has entered a decisive decade. The April 2022, flooding in <\/span>KwaZulu-Natal overwhelmed economic and social infrastructure and forced Toyota\u2019s Prospecton <\/span>assembly plant to halt production for four months. That kind of disruption is exactly the kind <\/span>which manufacturing firms face firsthand, and a crude awakening on the what the hard <\/span>knock of climate impacts on production can and are becoming.<\/span><\/p>\n

The impact affected production lines and logistics routes but also disrupted suppliers across <\/span>and into the province, demonstrating how physical risks cascade through industrial <\/span>ecosystems. Similarly, the 2023\/24, drought cut national maize yields by roughly 15%, <\/span>affecting agro-processing and food exports. From agriculture to automotive, the message is <\/span>clear: climate resilience is now a pillar of economic competitiveness. Building adaptive <\/span>infrastructure and climate-proof logistics, has to be integral to South Africa\u2019s re-<\/span>industrialisation agenda.<\/span><\/p>\n

Across the world, climate strategy has become industrial strategy. Major economies are <\/span>aligning trade, technology, and climate policy through ambitious industrial packages. The <\/span>question is no longer based on a false dichotomy of growth versus industrialisation, but how <\/span>to decarbonise competitively, preserving industrial capacity, jobs, and market access for <\/span>trade while building the foundations for a new wave of green growth.<\/span><\/p>\n

For developing economies, these shifts bring both opportunity and pressure. The EU\u2019s <\/span>Carbon Border Adjustment Mechanism (CBAM), which begins full implementation in 2026, <\/span>will apply carbon tariffs to imports of steel, aluminium, cement, and fertilisers. South Africa\u2019s <\/span>CBAM-exposed exports exceed \u20ac1.1 billion (R22bn), or about 5% of total exports. <\/span><\/p>\n

Unless exporters <\/span>reduce carbon intensity in their products, they risk higher costs, reduced demand, and long-<\/span>term market erosion, for example, the 2029 list of export products that will be liable for <\/span>Carbon Border Adjustment Mechanism (CBAM) will be expanded to include much of what <\/span>SA exports to the EU, requiring exporters to plan for the eventual effect.<\/span><\/p>\n

Technological Risk: Staying Ahead of a Moving Frontier<\/strong><\/p>\n

Technological disruption is reshaping global supply chains. South Africa\u2019s automotive sector, <\/span>worth R268.8 billion in exports in 2024, remains heavily reliant on internal-combustion <\/span>engines. With major markets phasing out fossil-fuel vehicles, the technological risk is <\/span>immediate and structural. But the threat extends beyond automotive sector. Globally, <\/span>manufacturing faces technology obsolescence as plants unable to adopt cleaner energy- <\/span>efficient systems lose space in the global market.<\/span><\/p>\n

Despite the risks, there are potential opportunities that can facilitate South Africa\u2019s path to <\/span>low-carbon and green industrialisation. Demand for critical minerals, including platinum-<\/span>group metals, manganese, and vanadium, is soaring as global electrification accelerates.<\/span><\/p>\n

South Africa\u2019s mineral base, manufacturing experience, and renewable resource endowment <\/span>position it well to be a central part of emerging green-industrial value chains.<\/span><\/p>\n

With some of the world\u2019s best solar and wind potential, South Africa can build renewable-<\/span>energy manufacturing, green-hydrogen value chains, and circular-economy industries that <\/span>help existing sectors transition. Done right, this is not only a climate response, but also a <\/span>platform for industrial renewal and competitiveness.<\/span><\/p>\n

Delivering a competitive transition depends on institutions that connect policy design and <\/span>industrial execution. The Presidential Climate Commission (PCC) plays a coordinating role, <\/span>aligning government, business, and labour around coherent mitigation, adaptation, and just- <\/span>transition strategies.<\/span><\/p>\n

The Industrial Development Corporation (IDC) complements this through its Sustainable <\/span>Industrialisation Pathways, which combines its climate response with its industrialisation m<\/span>andate, considering the socio-economic objectives of the country. The IDC identifies four <\/span>key pathways:<\/span><\/p>\n