Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Chemical and Allied Industries’ Association (CAIA) has overall expressed positive positions on climate policy in its top-line messaging, and appears supportive of the energy transition. However, it has expressed negative positions on the South African Carbon Tax and Climate Change Bill in 2022.
Top-line Messaging on Climate Policy: CAIA’s top-line communications are broadly positive, albeit limited. In September 2021, CAIA acknowledged the causal relationship between human activity, climate change and climate induced weather phenomena. In a September 2020 news release, CAIA appeared to support reducing global greenhouse gas (GHG) emissions in line with 2°C of warming, and also appeared to support the goals of the Paris Agreement. CAIA further supported the goals of the Paris Agreement in an October 2021 news release. Additionally, in the same October 2021 news release the organization appeared to support government-led policy interventions to reduce the climatic impact of future urban developments, stating that governments and organizations should aim to create “sustainable, carbon-neutral, inclusive cities and town”. Despite this, CAIA does not appear to take a clear position on the need for other climate-related policies.
Engagement with Climate-Related Regulations: CAIA has engaged negatively on the South African Carbon Tax and Climate Change Bill in 2022. In a September 2022 submission on the Draft Taxation Laws Amendment Bill (TLAB), CAIA supported measures that would weaken the Carbon Tax, including stating that the carbon tax rate was too steep, that other mitigation instruments would be more effective in achieving the goals of the Tax, and that business should be protected under the Tax. Further, in an October 2022 submission to a public hearing on the Climate Change Bill, CAIA supported the Bill but stated that sectoral emissions targets cannot be allocated simultaneously with carbon budgets, and that the Bill should be implemented at the lowest cost to the economy.
Positioning on Energy Transition: CAIA’s engagement on the energy transition is very limited.While CAIA Chairperson Rod Humphries has previously supported the role of fossil gas in the long-term energy mix in a March 2019 Engineering News article, in 2020-2021 the organization appears to be more supportive of renewable energy. In a May 2020 news release, CAIA appeared to support the integration of wind, solar and hydro power into South Africa’s energy mix. The organization further supported the development of wind energy to facilitate a “green recovery” (from the COVID-19 pandemic) in a June 2021 news release.