Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Industry Task Team on Climate Change (ITTCC) appears to have some active engagement on climate policy in South Africa, although there is limited transparency on its website beyond top-line positions. ITTCC has consistently opposed the carbon tax in South Africa, but has supported other forms of regulation, including energy efficiency measures and carbon budget legislation.
Top-line Messaging on Climate Policy: ITTCC appears to have mixed positions in its top-line communications on climate change. On its corporate website, accessed in June 2024, ITTCC appeared to recognize the science on climate change and the need to act. On the same webpage, ITTCC also stated support for South Africa’s international climate commitments, although did not explicitly support the Paris Agreement. On its corporate website, accessed in June 2024, ITTCC qualified its support for climate regulation in South Africa by stating they should not affect the country’s competitiveness or need to “reindustrialise”. In its position on South Africa’s climate change legal framework, accessed on its corporate website in June 2024, ITTCC supported the need for climate change legislation, but also stated that “business sees no reason for South Africa to have a legislative framework for climate change which is one of the most stringent in the world."
Engagement with Climate-Related Regulations: ITTCC appears to have mixed positions on climate-related policy in South Africa, although it has limited transparency on its engagement activities. ITTCC has consistently opposed South Africa’s carbon tax on its corporate website, accessed in June 2024. ITTCC 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, ITTCC called for lower tax rates from 2023-25, supported introducing free allocations and subsidies up to 2030, and called for the extension of the sequestration deduction to all sectors.
ITTCC has engaged more positively on energy efficiency and GHG legislation. In an infographic on its corporate website, accessed in June 2024, the entity supported South Africa’s 12L tax allowance incentive for energy efficiency measures. ITTCC has also supported the mandatory carbon budget legislation in South Africa on its corporate website (accessed in June 2024). However, in its position on South Africa’s climate change legal framework, accessed on its corporate website in June 2024, ITTCC appeared to advocate for less stringent penalties for companies which exceed the carbon budget.
Positioning on Energy Transition: ITTCC has limited engagement on the energy transition beyond top-line messaging. On its corporate website, accessed in June 2024, ITTCC supported a “predictable and gradual” transition to a low-carbon economy in South Africa. ITTCC has also supported the implementation of the Integrated Resources Plan and Integrated Energy Plan in South Africa, but with no clear position on the make-up of the energy mix under the policies.