Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Business Unity South Africa (BUSA) appears to have engaged with both positive and negative positions on climate policy. BUSA has supported renewable energy legislation in South Africa from 2020-2024. However, it also continues to support a sustained role for fossil gas and coal in the energy mix contrary to IPCC guidance, and in the past has advocated to weaken or oppose key climate policies in South Africa.
Top-line Messaging on Climate Policy: BUSA’s top-line communications on climate change appear to be broadly positive, albeit they appear to have communicated less frequently on the issue since 2022. In a February 2022 press release, BUSA expressed support for the Paris Agreement. In an August 2021 press release, BUSA appeared to support emissions reductions in line with net-zero by 2050. In the same press release, BUSA also advocated for a more ambitious Nationally Determined Contribution (NDC) for South Africa under the Paris Agreement.
Engagement with Climate-Related Regulations: BUSA’s engagement on climate policies in 2023-24 has been limited. In 2022, the association was unsupportive of the South African Carbon Tax and Climate Change Bill. BUSA signed a joint statement with other South African industry associations in September 2022, expressing their positions on the South African carbon tax proposals under the South African Taxation Laws Amendment Bill (TLAB). In the statement, BUSA called for lower tax rates from 2023-25, supported introducing free allocations and subsidies up to 2030, and advocated for a delay in increasing the carbon price until post-2035. These requests would weaken the climate ambition of the policy. Additionally, in an October 2022 submission to a public hearing on the Climate Change Bill, BUSA opposed the implementation penalties for emitters that do not comply with proposed carbon budgets under the Bill, and emphasized the economic impacts of the bill and that there are other ways to "deal with emissions".
In contrast, from 2020-2024 BUSA has consistently supported the public procurement of renewable energy technologies under South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) for example on its corporate website in January 2024, and in a July 2022 CEO statement.
Positioning on Energy Transition: Despite broadly positive top-line statements, BUSA does not appear to be fully supportive of the energy transition in line with IPCC science. BUSA appears to have positive and negative positions on the role of coal in South Africa’s energy mix. In an August 2021 press release, BUSA supported a transition away from coal in the energy mix, including no new coal plants built after 2030 and the phase-out of coal in the economy by 2042. However, in a March 2023 Newzroom Afrika interview, BUSA Environment & Energy Manager Happy Khambule appeared to support the role of coal in the South African energy mix beyond 2050 due to recently completed coal-fired power stations. Khambule stated that even if South Africa were to retire 50% of the coal fleet now or within the next coming years, the country would still “have coal after 2050 because Medupi and Kusile are only just being completed”, and that these power plants are “supercritical”.
BUSA has also continued to support the role of fossil gas in the energy mix. In a November 2023 joint media statement with the South African Government, BUSA supported the procurement of gas power without placing clear conditions on the deployment of CCS or methane abatement measures. In an April 2023 interview with South Africa Tonight, BUSA Environment & Energy Manager Happy Khambule supported new investments in fossil gas that will lock in unabated fossil gas in South Africa’s energy mix.
Nonetheless, BUSA appears to support the development of renewable energy. In a February 2023 Engineering News article, the association supported the need for government intervention to procure more renewable energy capacity. In the same month, BUSA published a press release wherein BUSA CEO Cas Coovadia called for subsidies for electric vehicle manufacture in South Africa. Additionally, in an August 2022 interview with iono.fm, Coovadia also supported South Africa's 'Energy Action Plan', calling for a more sustainable, cleaner and more efficiency energy system.