Trade, Industry and Competition Minister Parks Tau has said that measures such as the Carbon Border Adjustment Mechanism introduced by the EU need to be challenged by developing economies at the level of the World Trade Organisation, as they are likely to have a negative impact on South Africa’s economic growth efforts.

Nonetheless, he said there were significant opportunities to drive domestic industrialisation through global decarbonisation efforts, stating that South Africa must fully explore them for the benefit of the economy.

On November 19, Tau led a team of officials from the Department of Trade, Industry and Competition (dtic) to a joint briefing session of Parliament’s portfolio committees on Trade, Industry and Competition and Science, Technology and Innovation to engage on South Africa’s Green Hydrogen Commercialisation Strategy and the White Paper on Electric Vehicles (EVs).

He told the members of the committees that South Africa had committed itself to reducing greenhouse-gas emissions as envisaged in the national Just Energy Transition Investment Plan.

He said that, while South Africa had to decarbonise its own economy, it should not neglect to also position itself to commercially benefit from the global shift to greener technologies.

“Green hydrogen presents an opportunity to export natural resources such as sunshine and wind, which South Africa has in abundance. The global demand for green hydrogen presents ample industrialisation opportunities not only for South Africa but for other African countries, so we need to collaborate and integrate efforts to drive the industrialization agenda for the continent as a whole.

“The speed with which we move will determine whether we are able to take full advantage of the transition or we are left behind,” he said.

Linked to decarbonisation efforts was the global move to EVs, which Tau described as advancing at a fast pace. Through the White Paper on EVs and support to the automotive industry, the country was embracing the transition and adapting its automotive strategy to current global trends.

The White Paper on EVs outlines a commitment to ensuring that the transition is not just about decarbonisation but is also leveraged for growth by deepening the automotive value chain, fostering local industry growth, and aligning with economic priorities. The approach aims to be pro-growth and pro-investment.