THE POLITICAL ECONOMY OF CLIMATE CHANGE: NEDCOM JUNE 2014

1. THE POLITICAL ECONOMY OF CLIMATE CHANGE:NEDCOMJUNE 2014 Presentation by cde Khwezi Mabasa

2. 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

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

4. Background • South Africa is 12th 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.

5. 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

6. 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

7. 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%

8. So what does this mean for the working class? • The crisis of unemployment will continue: traditional energy sectors have become more capital intensive. 70 000 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. Economic restructuring, Climate Jobs & Just Transition • New Growth Path estimate :300 000 direct jobs in green economy by 2020 • 80 000 will be in manufacturing ; others in maintaining ,operating and constructing infrastructure • Creation of 400 000 jobs by 2030 • Localization and beneficiation are key for achieving the above-mentioned targets • Defend the principle of a just transition