Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Minerals Council South Africa (Minerals Council) appears to be actively and negatively engaged on the Carbon Tax Act, and advocates for the continued role of coal in the energy mix. Despite this, the group has shown increasing support for green hydrogen in decarbonizing heavy-duty transport and hard-to-abate sectors.
Top-line Messaging on Climate Policy: The Minerals Council appears to have mostly positive positions on climate change in its top-line communications, with some exceptions. In its 2022 Integrated Annual Review, published May 2023, Minerals Council supported the goal of net-zero greenhouse gas (GHG) emissions by 2050. The association also supported reducing GHG emissions in line with limiting global warming to 1.5°C in its February 2023 Facts & Figures Pocketbook, and appeared to support government regulation to respond to climate change in a December 2023 Tweet.
However, in its February 2023 Climate Change Position statement, Minerals Council stated that addressing climate change must include incentives for the private sector to invest in low carbon technology, and emphasized that industry competitiveness of internationally trade-exposed industries must be maintained.
Engagement with Climate-Related Regulations: The Minerals Council’s engagement with specific items of climate legislation has focused primarily on South Africa’s Carbon Tax Act, which the group has consistently pushed to block, weaken or delay since 2015. Aside from this, the association has limited engagement on climate legislation in 2023-2024. Minerals Council 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, Minerals Council supported the extension of phase 1 of the tax to 2023, 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.
In addition, in an October 2022 submission to a public hearing on the Climate Change Bill, Minerals Council called for penalties for emitters that exceed their carbon budgets under the Bill not to inflict punishment, but rather encourage deterrence and emissions reductions. It also emphasized that penalties could give rise to economic consequences. Minerals Council also disclosed that it responded to South African consultations on renewable energy in its Integrated Annual Review, published May 2023, however it did not include details of its engagements or positions.
Positioning on Energy Transition: The Minerals Council continues to support a sustained role for coal in the energy mix, despite having expressed support for the transition towards renewables in South Africa in its February 2024 Facts & Figures Pocketbook. In its February 2023 Climate Change Position statement, Minerals Council supported further research and development into clean coal technologies to further extend the life of the South African coal mining industry. As of June 2024, the Minerals Council also leads an initiative called ‘Coal Mining Matters’, which supports a significant role for coal in the energy mix.
The Minerals Council has however increasingly supported the role of green hydrogen, from 2023-24, in decarbonizing transport and high-emitting industries like the mining sector. It has consistently accompanied this support with recognition of the role of critical raw materials (CRMs) in energy transition technologies. For example, in an August 2023 speech, Minerals Council President Nolitha Fakude supported the production of green hydrogen for use in hard-to-abate sectors, supported policy incentives for green hydrogen production, and recognized the role of CRMs in green hydrogen technology while supporting a transition towards the technology. The association also expressed support for the development of green hydrogen to decarbonize the heavy-duty transport sector in a March 2023 presentation.