Climate Policy Engagement Analysis
Climate Policy Engagement Overview: SAPIA has positive top-line messaging on climate change, but qualifies its support for climate-related regulations by stating that they should not impact industry competitiveness. SAPIA also appears to have engaged negatively on specific climate-related regulations in South Africa, and appears to support a sustained role for fossil fuels in the energy mix, including liquified petroleum gas (LPG).
Top-line Messaging on Climate Policy: SAPIA is positive in its top-line communications on climate change in 2022-2023, however qualifies its support for climate-related regulations by stating that they should not impact industry competitiveness. In its February 2022 Position on Climate Change, SAPIA supported limiting temperature rise to well below 2°C and in its 2022 Annual Report, published in December 2023, the organization supported net-zero GHG emissions reductions by 2050. In its 2021 Annual Report, published in January 2023, SAPIA supported the draft Climate Change Bill in South Africa, arguing that it is necessary to provide policy certainty. However, in its February 2022 Position on Climate Change, SAPIA supported government regulation of climate change but qualified its support by stating that they should not affect the competitiveness of South African refineries, and also emphasized the risk of carbon leakage.
Engagement with Climate-Related Regulations: SAPIA appears to have engaged negatively on climate-related regulations. In a September 2022 joint statement, SAPIA advocated to policy makers to support measures to significantly weaken the Carbon Tax Act. These included support for lower tax rates from 2023-2025, free allocations and subsidies up to 2030, and delays in increasing the carbon price until post-2035. In its February 2022 Position on Climate Change, SAPIA did however support government intervention to create emissions reduction plans and statutory reporting of emissions in South Africa. The organization's executive director, Avhapfani Tshifularo, also supported the government Clean Fuels 2 initiative, a GHG regulation, in an op-ed in October 2023.
Positioning on Energy Transition: SAPIA advocates for a continued role for fossil fuels in the energy mix, including oil and LPG. In its February 2022 Position on Climate Change, the association strongly supported government intervention to increase the use of liquified petroleum gas and liquefied natural gas in the South African energy mix. In the same report, SAPIA supported the use of renewables and more ‘low carbon energy sources’ in South Africa, but did not make clear which low-carbon sources it referred to. The organization also continuously supports the role of biofuels, without further details on a full energy transition, an example of this can be seen in an op-ed by the executive director in October 2023.