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South Africa was placed squarely in the spotlight during the last quarter of 2011 with the announcement of large investments in alternative energy, the creation of thousands of jobs by growing the green economy, hosting COP17 and the release of the much anticipated Climate Change Response White Paper.
 Individuals and companies are however not always aware of how they could benefit from the developments and plans included in government papers. This is evident in the number of recent legislative and regulatory processes specifically pertaining to rebates, renewable energy and carbon projects, which have seen low uptake and implementation. This article explores the Climate Change White Paper and considers how companies can leverage these opportunities and realize their execution.
Work on the white paper started six years ago after years of consultation with big business, government departments and civil society. The paper, endorsed by the Cabinet, sets South Africa apart from other developing nations, including China and India, which have not made a similar commitments. The challenge for South Africa is to decouple economic and social development from the burning of fossil fuels to an extent which has no precedent in the developed world.
The paper calls upon businesses to adjust its financial architecture using various market instruments and incentives. This will require them to adopt various risk management methods to ensure their survival in a low-carbon future. These measures include plotting a carbon budget for the country's different business sectors. This budget is one of the most contentious, issues in the paper and will be published within two years after consultations with different sector.
Businesses will have to present plans to the government on how they envisage they will reduce their emissions, and the budget will then seek to impose the necessary caps. A national system of data collection will inform a greenhouse gas (GHG) inventory, while a monitoring and evaluation system will support an ongoing analysis of the impact of mitigation measures.
The policy will provide targets and direction for business to work towards – and therefore companies should already start measuring their current emissions, in light of the anticipated targets.
South Africa's white paper on climate change presents a vision for effective climate change response, long-term goals towards a lower-carbon economy and climate-resilient society. It includes a proposal to set emissions reduction outcomes for each significant sector in the economy. The policy focuses on adaptation, mitigation and mainstreaming “climate-resilient development”.
According to an executive summary in the white paper, within two years of its publication, all government departments and state-owned enterprises will be required to review the policies, strategies, legislation, regulations and plans falling within their jurisdictions to ensure their “full alignment with the national climate change response”. Government will then determine what adjustments need to be made and identify any legislative or regulatory measures deemed necessary.
It is therefore necessary not only to measure emissions – but also to reconsider company policies and strategies in order to align to the forthcoming government requirements.
According to GCX Policy Analyst, Juanique Pretorius, it is important to note that the paper makes the connection between moving toward a low carbon economy as a solution to our development issues; through aspects such as job creation and poverty alleviation, to education to food security, Pretorius says “The paper is well integrated and cross-cutting – it does not leave a sector of society untouched.”
The paper further suggests that the country needs to embark on a path of sustainable development with new, clean, appropriate technologies and to build climate resilient communities, so as to avoid the environmental mistakes of the developed world. It is therefore clear that what is required is for companies to embrace the new opportunities presented by this policy.
Leaders need to undergo a mind-shift in terms of sustainability and how to build it into company strategy, business models, company culture and psyche. When one considers documents such as the Integrated Resource Plan 2010, the Industrial Policy Action Plan, the Accelerated and Shared Growth Initiative, the Carbon Tax Discussion Paper and the National Development Plan – the important role of translating policy frameworks into business strategies becomes a critical factor. Global Carbon Exchange has recognized this need and can assist businesses in interpreting legislation into powerful sustainability management systems – contact us and start your journey today.
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