South Africa’s industrial behemoths are “endangering” the African powerhouse’s energy transition by defending fossil fuels such as coal and natural gas, according to a report released Thursday by the environmental NGO Influence Map.
The study looks at the climate policies of 16 South African companies and 12 industrial lobbies. While nearly three-quarters of the companies polled support South Africa’s transition to renewable energy, they “continue to strongly support the role of coal” in the mining sector, according to the think tank.
The same is true of the two economic heavyweights and biggest polluters in Africa’s leading industrial power: the state-owned company Eskom produces 90% of the country’s electricity mainly from coal, and the chemical industry specialist Sasol defends the use of natural gas.
However, this lobbying puts “in danger the climate objectives of the country”, regularly classified among the 15 biggest emitters of greenhouse gases on the planet, the NGO criticizes which also pinpoints “not strict enough” measures of the government as regards climate.
- South Africa is dealing with a water crisis.
- South Africa and the United States have joined forces to combat wildlife trafficking.
Eskom and Sasol are trying to get through the carbon tax that penalizes large emitters. South Africa became the first country on the continent to introduce such a measure in 2019, although it remains almost entirely offset by tax breaks.
“The framing of climate policies within companies in South Africa is crucial to unlocking the country’s transition” to carbon neutrality, Influence Map points out.
South Africa was the first country to sign a “Just Energy Transition Partnership” (JETP) at COP26 in Glasgow, which provides financial support from rich countries. Indonesia and Vietnam followed suit. A $98 billion investment plan for South Africa was approved last year at COP27 in Egypt.
According to the World Bank, however, South Africa will need at least $500 billion to achieve carbon neutrality by 2050.
Africa’s leading industrial power is facing a serious energy crisis, unable to produce enough electricity for the 60 million South Africans continually undergoing drastic load shedding.
Eskom, plagued by debts after years of mismanagement and corruption, particularly under the era of former president Jacob Zuma (2009-2018), is struggling with outdated power plants that regularly break down.
