South Africa must approach its energy transition pragmatically - The Mail & Guardian

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South Africa must approach its energy transition pragmatically - The Mail & Guardian
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South Africa must approach its energy transition pragmatically - A sensible climate policy must balance the imperative of decarbonisation, socioeconomic policy and security of supply considerations

The South African government also needs to work closely with other African countries such as Egypt, Nigeria and Algeria, which must make hard choices in managing a low-carbon trajectory.

These countries face the challenge of undertaking structural diversification to create new industries that fully exploit their hydrocarbon endowments to improve their citizens’ living standards while promoting a gradual green transition. If it was not for hydrocarbons, Norway would not have built up fiscal resources and capabilities to become a knowledge-driven economy. Of course, governance and inclusive institutions helped, but oil and gas paved the way.

Countries such as Australia, India, Indonesia and China could also offer more pragmatic lessons for how South Africa negotiates tough trade-offs. Australia, for example, has adopted a diversified strategy that entails deepening partnerships with a range of countries such as the United Kingdom, Germany, Japan and Singapore.

Finally, it is the primary role of the state, rather than private markets, to guarantee the country’s security of energy supply. For this reason, investment in gas infrastructure and enabling Eskom to compete across the energy mix, both in South Africa and the broader African continent, could help the country become energy secure. Subscribe for R500/year, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa.

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