Climate lobbying by big corporates holding back SA's energy transition

Is climate lobbying by big corporates holding back South Africa's energy transition?

Research by the environmental NGO Influence Map suggests this is the case.

While some South African companies and industry associations have supported climate policy that advances the transition towards renewables, many major industrial players continue to defend fossil fuels, the report says.

It analyses the corporate climate policy positions of 16 companies and 12 industry associations spanning the period from 2019-2023.

"The report finds that there is a clear imbalance in industry engagement with flagship South African policies including the Carbon Tax Act and the Climate Change Bill."

"It also provides deep dives into the climate policy engagement of powerful actors such as Eskom and Sasol. Both were found to have actively engaged on climate policy, including engaging negatively on the South African Carbon Tax."

Influence Map

Bruce Whitfield gets input from Tracey Davies, Executive Director at non-profit organisation Just Share.

While emissions are at record highs, South Africa is making no progress to reduce them, Davies notes.

A big reason for this is corporate lobbying, she says.

"If it's just 'part of the game' and corporates boxing in their corner, then it certainly in South Africa is a completely unregulated, unfair and non-transparent game which benefits a few large corporate emitters at the expense of the rest of us."

Tracey Davies Executive Director - Just Share

Davies cites the increase in insurance premiums and insurers refusing cover for weather-related damage as an example.

"The impacts are hurting all of us, but it's these big guys who are playing an enormous role in making sure that we don't make progress on reducing emissions."

Tracey Davies Executive Director - Just Share

Davies says the disparity between lobbying done by groups like Just Share and these big corporate players is that they have preferential access to policy- and decision-makers, Davies says.

They use this preferential access to ensure that climate regulation is weakened and delayed, she explains.

"Preferential access is probably the key point, because when government is considering policy making and law, there are legislated public participation processes... and what happens in these instances is that that is not the process through which the lobbying takes place.:"

"When it comes to technical things like climate change you have business groupings with phalanxes of lawyers and technical experts meeting with government officials who are not necessarily experts in these fields, and they are very persuasive and convincing." "

All of this is happening behind closed doors, so no-one else gets to say, the argument is not act the full picture and you need to also hear this side of the story.",

Tracey Davies Executive Director - Just Share

Climate lobbying by big corporates holding back SA's energy transition - report

Environmental NGO Influence Map has released research on the engagement of South African industry on climate-related regulations.