International climate change consultancy Camco was conducting research into the indirect effects that climate change could have on South Africa’s economy, ranging from impacts on the tourism sector, aviation and food exports, through to commercial opportunities in low carbon technologies and the promotion of alternative carbon markets.

The research would aim at assessing how industry could be affected by shifts in consumer preferences, how the evolving carbon regulation environment in South Africa might affect industry, and how business and the economy as a whole should respond to these challenges. 

The project was being undertaken in conjunction with Trade and Industrial Policy and Strategies (Tips) and the ComMark Trust, with support provided by the British High Commission.

Camco said that the research was based on the understanding that climate change is not just an environmental issue, but could have significant implications for trade, investment and industry competitiveness.

South Africa, being a carbon intensive economy, was exposed to a number of potential climate change related liabilities. “Nevertheless, risk is often the precursor of opportunity, and considerable scope exists for the South African economy to shift these potential liabilities into market enablers, as the Long Term Mitigation Scenario (LTMS) and other studies have begun to explore,” said Camco.

As part of the study, a stakeholder workshop including representatives from the private sector, national and local government, non-governmental organisations and the donor community would discuss and debate the economic risks and opportunities posed by climate change for South Africa.

A number of key issues would be discussed. These were: identifying what commercial risks and opportunities companies faced from climate change, and how these could be addressed; how ‘air miles’ and the demand for low carbon goods could impact South African manufacturing and exports; whether or not the tourism sector was adequately prepared for pressures to promote ‘local tourism’ within industrialised nations; outlining opportunities presented for trade in environmental services by climate change, including through land use improvements and carbon sequestration; how industry could respond to a carbon tax regime in South Africa, and whether or not there were alternatives; and how activities that combat climate change and promote poverty alleviation and socio-economic development could be fast tracked.

Camco stated that the research would help to take the climate debate in South Africa forward, identifying economic opportunities presented by climate change and exploring synergies with national priorities relating to job creation, enterprise development and poverty alleviation.

The notion of ‘green jobs’ has come increasingly to the fore in recent years, and highlights that a number of national efforts to address climate change could promote economic growth as well as support environmental protection.

The organisation also noted how South Africa has become increasingly involved in addressing climate change issues, from involvement in international climate negotiations, the modelling of potential mitigation scenarios under the LTMS process, and the current development of a national Climate Change White Paper.

A significant amount of work has also been done to consider the direct impacts of climate change on the South African environment, including physical impacts related to higher temperatures, sea level rise, increased risk of wild fire and concerns over future water availability.

It was felt that there was a gap that existed in terms of the indirect effects on climate change in South Africa, which Camco would address through this project.