TIPS - Climate Change

Opportunities to develop the lithium-ion battery value chain in South Africa

2021-03-01T13:53:57+02:00

The world of mobility is rapidly changing. The market for electric vehicle (EVs), in all their forms, is growing exponentially. Combined with technological disruptions in the energy space, the rise of EVs puts battery technologies at the core of sustainable development. Multiple technologies and chemistries, with their respective advantages and shortcomings, are competing in a market currently dominated by lithium-ion batteries (LIBs).

Both South Africa’s government and industry have indicated their intention to position the local value chain as a key player in the mobility of the future. This is critical to ensure a just transition to e-mobility which would notably preserve, if not increase, job creation. Indeed, South Africa hosts a vibrant automotive manufacturing value chain. Like in the rest of the world, the domestic industry, however, produces internal combustion engine vehicles and components. This research report explores the opportunities for South Africa to have a role in the LIB value chain.

Background

This project comprises a main report and policy brief were prepared by TIPS on behalf of the Low Carbon Transport - South Africa (LCT-SA) Project. The project was initiated and funded by the United Nations Industrial Development Organisation (UNIDO). The TIPS team are: Gaylor Montmasson-Clair, Lesego Moshikaro and Lerato Monaisa. It was overseen by a Steering Committee comprised of Ashanti Mogosetsi (UNIDO), Marie Blanche Ting (UNIDO), Gerhard Fourie (Department of Trade, Industry and Competition – the dtic), Hiten Parmar (uYilo), Jenitha Badul (Department of Environment, Forestry and Fisheries – DEFF), Shahkira Parker (DEFF), Bopang Khutsoane (Department of Transport – DoT), Marleen Goudkamp (DoT), Minnesh Bipath (South African National Energy Development Institute – SANEDI), and Tebogo Snyer (SANEDI). Phillip Ninela (the dtic), Umeesha Naidoo (the dtic), and Mandisa Nkosi (UNIDO) acted as an internal technical task team.

See Policy Brief: Opportunities to develop the lithium-ion battery value chain in South Africa.

Managing economic risks linked to climate change: Securing market access for South African wines.

2020-07-29T12:01:13+02:00

With greenhouse gas (GHG) emissions coming to the fore of nations’ climate policy concerns, the wine industry faces a new challenge. Viniculture (grape cultivation for winemaking) is directly susceptible to climate change impacts due to grapevines being highly sensitive to the surrounding environment, such as changes in weather patterns. In addition, the industry is increasingly targeted by climate change response measures, aimed at reducing GHG emissions. Such measures are poised to significantly alter traditional methods of production. Trade-related climate change response measures, such as shifts in import-export patterns, border carbon adjustments or non-tariff barriers (such as standards), are also increasingly more prevalent.

South Africa is the world’s sixth largest exporter of wine in volume and has not been exempt from these trade impacts. This paper unpacks the green protectionism dynamics which have increasingly impacted the domestic wine value chain and stand to be a growing risk moving forward. The paper also explores the factors that make it particularly difficult and yet necessary for South African producers to adapt to this new genus of regulation.

This report was produced by TIPS for the Department of Trade, Industry and Competition

Climate change adaptation and agriculture in South Africa: a policy assessment

2016-05-20T15:53:05+02:00

Report produced by Trade and Industrial Policy Strategies for WWF-SA, South Africa. WWF received funding from the British High Commission to establish a programme to provide the South African agri-food value chain with tools and information to understand and proactively respond to climate risks in the value chain thereby supporting on-going productivity in South Africa and continued local and international market access for South African supply farms.

Should you wish to reference this paper, please do so as follows:
Zwane, M. & Montmasson-Clair, G. 2016. Climate change adaptation and agriculture in South Africa: a policy assessment. Report compiled for WWF-SA. South Africa

Climate change adaptation and agriculture in South Africa: a policy assessment

Tracking Climate Finance Inflows to South Africa

2013-04-15T06:00:00+02:00

Discussion document prepared for the Climate Change Expert Group (CCXG) Global Forum held in Paris in March 2013.

This paper conducts a case study focused on the state of the tracking of public and private climate-related inflows to South Africa. It investigates South Africa's strategy on climate finance (tracking) and describes South Africa's project-based approach to tracking. It also explores what data on public (domestic and foreign) and private climate finance inflows are available in South Africa and how information is collected. It also highlights the challenges with regards to tracking climate finance in South Africa and formulates recommendations.

See http://www.oecd.org/env/cc/ccxgglobalforum-march2013.htm

Climate Finance Tracking in South Africa

2013-01-21T02:00:00+02:00

Official project name: Tracking Climate Finance Inflows to South Africa

Client: Organisation for Economic Co-operation and Development (OECD)

Funder: Organisation for Economic Co-operation and Development (OECD)

Duration: 15 January 2013 - 21 March 2013

Summary

TIPS was commissioned in 2013 by the OECD to carry out a case study focused on the state of the tracking of public and private climate-related inflows to South Africa.

The study investigates South Africa’s strategy on climate finance (tracking). It then describes South Africa’s project-based approach for tracking and explores what data on public (domestic and foreign) and private climate finance inflows are available in South Africa and how information is collected. Finally, the paper highlights the challenges of tracking climate finance in South Africa and formulates recommendations.

The research findings were presented at the OECD/IEA Climate Change Expert Group (CCXG) Global Forum in Paris, France in March 2013.

Tracking Private Climate Finance – Research Collaborative

The Research Collaborative is an open network, co-ordinated and hosted by the OECD Secretariat, of interested governments, relevant research institutions and international finance institutions.

The goal is to partner and share best available data, expertise and information to advance policy-relevant research in a comprehensive and timely manner. The project is designed to serve as a co-ordinating platform for identifying research priorities and gaps, sharing information, weaving a coherent narrative across what would otherwise be disparate research outputs, as well as communicating results to raise awareness in this area.

TIPS is one of the participating institutions.

The others are: Bloomberg New Energy Finance, Climate Policy Initiative, Gaia, Overseas Development Institute, OECD, United Nations Environment Programme, World Resources Institute and Zambia Institute of Environmental Management.

Project website: www.oecd.org/env/researchcollaborative

A summary leaflet of the programme available here: Tracking Private Climate Finance – Research Collaborative

Intellectual Property and Climate Change

2012-05-21T04:00:00+02:00

Official project name: Sharing technology in a low-carbon knowledge economy

Client: South African Institute of International Affairs

Funder: South African Institute of International Affairs

Duration: 2012-2013

Summary

In 2012, TIPS’s Sustainable Growth pillar worked for the South African Institute of International Affairs (SAIIA) on a research paper on intellectual property in climate negotiations, including a case study focused on concentrated solar power (CSP).

The paper shows that the technological revolution required by climate action can be achieved by existing technology, but would benefit immensely from continued innovation to lower costs. The sheer scale of investment required necessitates the wholesale participation of the private sector, motivated to innovate by intellectual property rights (IPR). The paper shows that IPR is an essential institutional tool for disseminating technology and that its benefits are greater than its costs – costs which can be further contained through competition policy.

Of the issues that plague developing nations' ability to access technology, absorptive capacity and the ability to demonstrate first-of-its-kind technologies at scale – rather than IPR costs – are prominent and can be addressed through finance solutions, possibly under a global climate regime.

The research, which was presented at an International Institute for Sustainable Development (IISD) / International Centre for Trade and Sustainable Development (ICTSD) side-event at COP17 climate negotiations in Durban, South Africa, contributed to informing the official position of the South African government.

Technical Assistance to the South African UNFCCC Delegation on Climate Finance and Market-Based Mechanisms

2012-04-21T02:00:00+02:00

Official project name: Technical support on economic modelling of impacts of international policies and mechanisms on markets, sectors, climate finance and technology on South Africa / GIZ Project: DEA Climate Change Support Program

Client: Department of Environmental Affairs (DEA), Chief Directorate - International Climate Change Relations and Negotiations

Funder: Gesellschaft für Internationale Zusammenarbeit (GIZ)

Duration: 15 April 2012 - 31 March 2013

Summary

TIPS was contracted in 2012/2013 by GIZ to provide technical assistance to the DEA on three topics in the United Nations Framework Convention on Climate Change (UNFCCC) negotiations:

The use of (carbon) markets to improve the allocative efficiency of mitigation efforts;
The use of (carbon) finance to reduce the cost of developing country mitigation and adaptation actions; and
The use of sectoral mechanisms (to extend the coverage of mitigation commitments and to raise finance for adaptation and mitigation).

As part of this project, TIPS produced a comprehensive report for the South African delegation to the UNFCCC on Markets, Sectoral Approaches and Finance, including specific recommendations on negotiation positions.

TIPS also developed a spreadsheet-based Integrated Assessment Model, dubbed Basic Assessment Tool of the Impact of Climate Action (BATICA), which aims to demonstrate the impacts of markets, non-market mechanisms (such as carbon price floors and ceilings), financial support and innovation on the cost of global climate action and the distribution of this cost among countries or sectors).

In addition to the continual engagement with DEA officials, TIPS ran workshops to present the findings of the report and the model to the delegation members and government officials.

TIPS also provided on-going and on-site support to the South African delegation at the Bonn Climate Change Conference (AWG-KP 17, AWG-LCA 15 and ADP 1) in Bonn, Germany (14-25 May 2012), the Bangkok Climate Change Conference (informal additional sessions of the AWG-LCA, AWG-KP and ADP) in Bangkok, Thailand (30 August - 5 September 2012) and the Doha Climate Change Conference (COP 18 – CMP 8) in Doha, Qatar (26 November – 7 December 2012).

TIPS also provided support to DEA during two BASIC Experts Forums – one in Johannesburg, South Africa in July 2012 and one in Beijing, China just prior to 18th Conference of the Parties (COP18).

Business Consultation on Rio+20

2012-03-21T02:00:00+02:00

Official project name: Facilitation of a Sectoral Workshop and Preparation of a Briefing Paper. Rio+20 Project / Research and Technical Cooperation Services Unit for the Trade Development and Cooperation Agreement Facility

Client: WWF and Department of Environmental Affairs

Funder: Trade Development and Cooperation Agreement (European Union)

Duration: 22 March 2012 – 10 April 2012

Summary

In 2012, the Department of Environmental Affairs (DEA) engaged with civil society stakeholders to inform its response to the Rio+20 Zero Draft Outcome Document, The Future We Want. The DEA supported the organisation of four sectoral workshops with relevant stakeholders from the environmental movement, labour, business and the social sector.

TIPS facilitated the business cluster workshop in Johannesburg, South Africa in April 2012 aimed at informing relevant stakeholders and capturing sectoral views relating to Rio+20. TIPS’s Sustainable Growth pillar developed a briefing paper, titled “How Can a Green Economy Transition Make Doing Business in South Africa Easier and More Competitive?” to inform and guide the DEA and other business stakeholders on issues related to Rio+20, including recommendations to be included in the DEA submission to Cabinet. TIPS was also responsible for rapporteuring and synthesising the outcome of the consultation, which constituted the input of business in the process.

Trade and Climate Change: Policy and Economic implications for South Africa

2011-06-10T12:00:00+02:00

Climate and trade issues lie at the intersection of two of the world's most contested, delayed and important multilateral negotiations. Climate change under the auspices of the United Nations Framework Convention on Climate Change (UNFCCC) and international trade as regulated by the World Trade Organization (WTO). This paper is a scoping assessment of the inter-relationship between international trade and climate change negotiations as it affects policy development in South Africa. The paper highlights two key variants of measures which pose a challenge to both these negotiations, specifically border carbon adjustments and the liberalization of trade in environmental goods and services.

The paper finds that while free trade in green industry products may be encouraged under a global climate agreement, it should not be reasonably required. In addition, for Border Carbon Adjustments (BCAs) under the UNFCCC, the authors recommend that BCAs be considered an issue best left to the WTO to judge as fair or not. At the same time, the authors propose a multilateral climate agreement under the UNFCCC which considers one (or all) of the following three agreements/provisions to mitigate the negative impact of response measures on non-Annex 1 countries:

Exemption of Least-Developed Countries from BCAs;
Inclusion of non-Annex 1 countries in a global carbon trading scheme on the basis of no-lose targets (which economic modelling suggests almost totally offsets any negative trade impact of carbon pricing on exports); or
Provision made for an “effectively comparable” or “minimum effort” carbon price, whose implementation in a country that is a signatory of the Convention would be acknowledged and treated as a Nationally Appropriate Mitigation Action (NAMA). A global deal on climate change should then allow for Non-Annex 1 countries to be exempted from the imposition of any unilateral BCAs by other signatories of the Convention, provided they meet the “minimum effort” requirement for carbon pricing.

Case Study – The Construction Industry’s Path towards a Low Carbon Trajectory

2010-12-29T17:23:08+02:00

The construction sector has a key role to play in greenhouse gas (GHG) emissions reductions. Not only can firms in the sector, by using less energy-intensive and polluting strategies and techniques, contribute to this reduction, these firms can also encourage clients to utilize such technologies. The construction sector encompasses a range of segments; the building sector with primary building work demolitions, maintenance, repairs and alterations and heavy construction work. Typically, however, the construction sector is seen as encompassing residential building (houses and residential property), non-residential building (industrial buildings) and civil works (or civil engineering). As noted in the economic sector review of the construction industry, the building sector dominates. This segment accounted for 62.5% of all construction activities in value terms in 2009.