South Africa’s Ramaphosa Urges Green Energy Transition to Avoid Carbon Border Tax

PRETORIA – South Africa’s President Cyril Ramaphosa warned on Monday that future carbon taxes proposed by wealthy nations could severely impact the economies of developing countries unless they rapidly transition from fossil fuels to green energy.

Speaking at a climate change conference hosted by the National Treasury and the World Bank in Pretoria, Ramaphosa emphasized that the carbon intensity of South Africa’s economy, which heavily depends on coal for electricity, is unsustainable. “For decades our reliance on coal … allowed us to produce electricity cheaply. But the world has changed and this dependency has come to pose significant risks,” he stated, pointing out the potential threat of carbon taxes proposed by trading blocs like the European Union.

He specifically highlighted the European Union’s Carbon Border Adjustment Mechanism as a significant threat to developing economies. “Instruments like the European Union’s Carbon Border Adjustment Mechanism … (have) the potential to cause great damage to developing economies,” Ramaphosa warned.

Data from the think tank Ember shows that in 2022, South Africa was the most carbon-intensive major economy, producing 709 grams of carbon dioxide per kilowatt hour of energy generated. This places it among the top 15 greenhouse gas emitters globally, surpassing countries such as Turkey, Italy, France, and Britain, according to Climate Transparency.

Ramaphosa also referenced the recent storms around Cape Town, which caused widespread damage, as a stark example of the negative impacts of climate change. “The countries of the Global South … feel the effects of climate change most, despite being least responsible historically for global emissions,” he noted.

In a significant shift from his predecessor, South Africa’s new energy minister pledged last week to accelerate the transition to renewable energy. However, specific details on how this transition will be achieved remain sparse.