Lack of policy could cost South Africa in carbon taxes

The fast-changing landscape of carbon neutrality requires quick decision-making by government and farmers, they will fail to capitalise on available opportunities. Lindi Botha reports.

- Lindi Botha

Agriculture's contribution to South Africa's carbon emissions lies at around 10%, with the electricity, petrochemical and chemical sectors making up more than 60%. Since South Africa has pledged to reach carbon neutrality by 2050, these sectors have a long way to go to help eliminate the 435 million tons of carbon emissions produced annually.

According to the Presidential Climate Commission, South Africa needed about R1,5 trillion for its plan to move away from coal over the next five years. While the country was promised R154 billion at COP26 as part of a green deal to help Eskom move to a less carbon-intensive system, the money has yet to be received.

Instead, different interests within the country are tussling over how the money should be distributed.

Public Enterprises Minister Pravin Gordhan said it would not be used to clear Eskom's debt, but deployed for Eskom's Just Energy Transition project, green hydrogen production, and the manufacturing of electric vehicles.

"On the one hand, we have to prepare for the transitioning of Eskom to a decarbonised state, but, equally importantly, help the other sectors of the economy that would be affected," he said.

FINANCIAL AID FOR FARMERS