President Cyril Ramaphosa has reiterated that South Africa will decarbonise at a pace and scale that is affordable to the economy and society.
"If we act too fast, we risk damaging huge sections of our economy before we have built alternative energy and industrial capabilities. At the same time, not acting now risks our economic stability," President Ramaphosa said on Monday.
The President was speaking at the Climate Resilience Symposium, which is underway at the Council for Scientific and Industrial Research (CSIR) International Convention Centre, in Pretoria.
READ | Climate resilience tops agenda at symposium
Held under the theme, 'Moving the needle on climate change and just transition: The role of the National Treasury', the three-day symposium, taking place from 15 - 17 July 2024, aims to integrate climate goals into macro-fiscal and finance policy.
It also aims to improve government coordination by mainstreaming climate change considerations into the intergovernmental fiscal system, amongst others.
In his address, President Ramaphosa stressed the importance of strengthening systems for adaptation and mitigation, building resilience in communities, and accelerating the decarbonisation efforts and the pace of the just energy transition.
"The reality we must confront is that the carbon-intensity of our economy is unsustainable and for decades our reliance on coal was a competitive advantage because it allowed us to produce electricity cheaply, but the world has changed and this dependency has come to pose significant risks," President Ramaphosa said.
As the world moves towards greener economies, the country's trading partners, the President said, will take measures to ensure that their own climate actions do not undermine their economies.
He said instruments like the European Union's Carbon Border Adjustment Mechanism, which has the potential to cause great damage to developing economies, signal the inevitability of carbon pricing in global trade systems.
He said the country's emissions-intensive energy system is likely to increasingly undermine its competitiveness in global markets.
Safeguarding the nation
President Ramaphosa called on South Africa to embrace a managed transition to a low-carbon economy, not only to safeguard its people and environment, but to ensure the country's economic resilience and growth.
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He warned that the country is facing a climate emergency, and indecision and slow action are not an option.
"We must act decisively and swiftly to mitigate the effects of climate change and ensure a just transition for all South Africans. We must pursue a green industrial agenda that will create jobs and grow the economy.
"Investments in green infrastructure, renewable energy and climate adaptation measures can be costly, requiring careful financial planning and prioritisation. That is why we have prioritised inclusive growth," President Ramaphosa said.
The President said government is hard at work implementing the urgent reforms needed to lift growth and pursuing a fiscal strategy that protects the sustainability of public finances.
He noted that Operation Vulindlela has been an extremely successful partnership between National Treasury, the Presidency and a wide range of government departments.
"It has enabled significant reforms in areas like energy, water, telecommunications, and transport, making our economy more competitive and increasing our productive capacity.
"Our strategy involves preparing ourselves to withstand the economic risks posed by climate change while taking full advantage of the opportunities of the energy transition. This is no easy balance," President Ramaphosa said.
