Presentation by cde Khwezi Mabasa 1

Main Arguments Climate Change is definitely a working class issue Restructuring the domestic and international political economy is crucial for developing a low-carbon economy Impossible to develop a low-carbon economy without economic restructuring There is a strong correlation between energy and climate change. Transformation of energy planning is key for developing a low- carbon economy 2

Structure of the Presentation Background What is Political Economy South African Political Economy and Climate Change Green Accord Policy Discussions 3

Background South Africa is 12 th largest emitter of GHGs in the world Produces 1.5 % of global emissions Produces almost half of the emissions on the continent Per capita emissions are nearly equal to those of the EU; but these countries are rated higher on HDI This indicates that the rich causes climate change & the working class bears the socio-economic externalities. 4

Political Economy What is the nature of the mutual interaction between the state and market? How the state and its associated processes influence the distribution & production of wealth How political decisions or interests influence the location of economic activities and the distribution of costs & benefits How economic power and forces alter the distribution of political and military power in the world 5

Challenges of Post-Apartheid Political Economy High unemployment and inequality Concentrated patterns of ownership Deindustrialization Unproductive investment Over financialization of the South African Economy Minimal Structural Reconfiguration : Minerals Energy Complex 6

Climate Change and SA’S Economy Electricity generation accounts for 40 % of GHGs emissions; 92% produced from coal Transport and energy used in industry = just under 10 % each Industrial process emissions =14% Agriculture and land use= 5% Waste = 2.1% 7

So what does this mean for the working class? The crisis of unemployment will continue: traditional energy sectors have become more capital intensive power sector jobs were lost between 1980 and 2000 in SA; whilst electricity expanded by 60 percent during the same epoch. Workers and communities in the traditional energy sectors will bear the externalities of traditional energy production 1.Non-compliance with health and safety standards 2.Non compliance with environmental legislation The-above mentioned crisis of unemployment will be exacerbated by deindustrialization because of reliance on MEC 8

So what does this mean for the working class(2) Food insecurity 1.decrease in food production 2.increase food prices 3. increase food insecurity Exacerbate the water crisis 1. decreasing natural water supply 2. Higher temperatures cause evaporation Exacerbate the Housing/Human Settlement 1. Floods and extreme winds destroy housing/settlements 2. Destroy public amenities in coastal regions 9

So what does this mean for the working class(3) Increase Energy poverty 1. Energy distribution skewed towards industry and upper classes 2. Citizens use unsafe, unreliable sources of energy 3. Many people still do not have access to electricity Health and burden of disease. 1. Heat strokes 2.Respiratory Diseases 3. Food shortage will cause malnutrition 10

So what is to be done? Green Accord? Policy Discussions: 1. The Development of the Renewable Energy Sector 2. Agrarian and Land reform 3. Energy Planning for a low–carbon economy 4. Economic Restructuring, Climate Jobs and the just transition 11

Key aspects of Green Accord Commitment one: SWH Commitment Three: Renewable Energy Commitment eight: Retrofitting Commitment nine: Reducing emissions on our roads Commitment ten: Increasing energy access Commitment eleven : localization; cooperatives; youth employment and skills development 12

Renewable Energy and SA Accounts for less than 1% of electricity production High job potential if localization strategy is implemented Integral for decentralization of energy Potential to revive industrial and manufacturing base of South Africa Less costly than nuclear energy; key for emission reduction 13

Land and Agrarian Reform Agrarian reform is essential for addressing challenges of poverty; inequality and unemployment Development of local small scale farmers Reform agrarian techniques so they compliment the transition to a low carbon economy 14

Energy Planning & Low-carbon economy Rejection of big corporate driven projects that exacerbate climate change and unequal distribution of energy Advocate for public and social forms of ownership in the renewable energy sector Restructure the political economy Place socio-economic indices at the centre of energy planning Transforming state owned enterprises 15

Economic restructuring, Climate Jobs & Just Transition New Growth Path estimate : direct jobs in green economy by will be in manufacturing ; others in maintaining,operating and constructing infrastructure Creation of jobs by 2030 Localization and beneficiation are key for achieving the above-mentioned targets Defend the principle of a just transition 16