The South African economy continues to face the triple challenge of high unemployment, poverty, and inequality, further exacerbated by the COVID-19 Pandemic. The country is also one of the most carbon-intensive economies in the world. Coal-based electricity generation, carbon-intensive transport systems, and energy-intensive industries continue to drive unsustainable greenhouse gas (GHG) emissions, with limited socio-economic benefits or progress against the triple challenge.
While South Africa disproportionately contributes to climate change, it is also vulnerable to both the biophysical impacts of climate change and the various socio-economic impacts from international and local responses to climate change, referred to as transitional risks; such as carbon trade barriers that threaten the economy’s comparative advantage and international competitiveness; missed funding opportunities; job losses; and increased inequality and poverty. Jobs and livelihoods that rely on carbon-intensive sectors are also at risk and need to be carefully managed through a just transition to a low-carbon economy.
Recognising the threat of climate change and the development potential of green economy strategies, the South African government has embarked on a sustainable developmental pathway, where social equity, economic development, and environmental sustainability go hand-in-hand. A just transition is critical for addressing South Africa’s socio-economic challenges of unemployment, poverty, and inequality, while enabling economic development through environmentally-sustainable policy and business practices. Green nature-based COVID-19 inclusive economic recovery policies can provide win-win solutions for people, business, and nature, in catalysing the transition to an inclusive sustainable economy. As such, they will not only mitigate the impacts of future environmental degradation, but also uphold the value of nature, upon which economic development and human well-being is dependent.
This Green Economy Technical Report provides an overview of the following:
- Strategies and policies for a green economy;
- Sustainable finance for a green economy;
- Sustainable consumption and production for a circular economy;
- Economic inclusion within the green economy; and
- South Africa’s green recovery from COVID-19.
The report is largely based on the four thematic concept notes from the PAGE 2019 Ministerial Conference, with subsequent additions to align it more closely with the current context.