South Africa is poised to leverage global decarbonisation efforts to drive industrialisation and economic growth, according to Minister of Trade, Industry and Competition Parks Tau. Speaking at a joint parliamentary briefing, Tau emphasised the need for swift action to capitalise on green energy opportunities, including green hydrogen and electric vehicles (EVs).
The briefing, attended by members of Parliament’s Portfolio Committees on Trade and Industry and Science, Technology and Innovation, focused on the country’s Green Hydrogen Commercialisation Strategy and the White Paper on EVs.
South Africa has potential to become a major player in the green hydrogen economy, leveraging its abundant natural resources such as solar and wind energy. “Green hydrogen presents an opportunity to export natural resources such as sunshine and wind, which South Africa has in abundance,” said Tau, adding that global demand for green hydrogen offers significant industrialisation prospects not only for South Africa but for the continent at large.
He stressed the importance of collaboration across African countries to drive industrialisation and warned of the risks of inaction. “The speed with which we move will determine whether we are able to take full advantage of the transition or we are left behind.”
Tau also discussed the rapid global shift toward EVs, underscoring South Africa’s proactive stance in embracing this transition. The White Paper on EVs is central to this effort, outlining measures to deepen the local automotive value chain, grow the domestic industry and align with broader economic priorities. “The approach aims to be pro-growth and pro-investment,” he said.
Acknowledging South Africa’s reliance on carbon-intensive industries, Tau raised concerns about external regulatory pressures such as the European Union’s Carbon Border Adjustment Mechanism (CBAM). The CBAM imposes a carbon border tax on products imported into the EU with high embedded greenhouse gas emissions, which could impact South Africa’s trade and industrialisation efforts.
He indicated that government is considering challenging the CBAM through the World Trade Organization, citing its potential to hinder economic growth in developing economies.
