COSATU Submission: Carbon Tax Bill - Just Transition Proposals for Jobs and Green Economy

1. COSATU Submission: Carbon Tax Bill12 March 2019

2. Introduction • Realities and impacts of climate change; • Need for urgent action to halt climate change; • Tax as an influencer of industry and consumers; • Lack of a government jobs and transition plan; and • COSATU proposals.

3. Impact of Climate Change on Workers • Water crisis; • Acid mine water; • Pollution in urban and industrial areas; • Asbestos and mining communities; • Agricultural job losses & food security; • Increasing levels of skin cancer & shortened life expectancies; • Floods, rising sea levels etc; and • Fiscal burden to the state.

4. Eskom and State Capture • NUM – renewable energy champion; • Eskom threat to retrench 5000 coal workers; • Guptas, Optimum, Tegeta, Eskom & DMR. • New job threats: • 10% job cuts by 2019; and • Longer term plans to cut Eskom jobs by 50%.

5. Carbon Tax • Tax – an easy tool to influence the economy; • Punish polluters; • Low levels of tax, initially; • Agricultural exemptions; and • Mining industry fragility.

6. Carbon Tax • Other climate change state interventions? • Over taxation and increasingly regressive taxes; • Lack of a government jobs plan; and • Few departmental jobs targets.

7. COSATU Just Transition Proposals – Jobs Plans • Nedlac engagements • Presidential Jobs and Investment Summits: Just Transition Task Team • Macro and sectoral targets & plans; & • Reskilling and absorbing affected workers and communities.

8. COSATU Just Transition Proposals - Eskom • Eskom as renewable energy producer; • Massive expansion of electricity supply to: • Export to Africa; and • Production of locally made electric cars, taxies and busses for domestic use and exports.

9. COSATU Just Transition Proposals - Renewables • Renewable technology: • Roof tiles and road surfaces; • Require all buildings to install locally produced renewable energy and water and grey water harvesting within 5 years. • Manufacturing and export opportunities.

10. COSATU Just Transition Proposals - Water • Water conservation plans e.g. infrastructure, alien vegetation etc. • Require all buildings to install locally produced renewable energy and water and grey water harvesting within 5 years. • Recycling of water etc. • Manufacturing and export opportunities. • Oceans. • Aquaculture.

11. COSATU Just Transition Proposals – Transport • Public transport: • Commuter and freight trains; • Electric vehicles: • Busses; • Cars; • Bikes. • Manufacturing and export opportunities. • Paint roads white. • Biofuels.

12. COSATU Just Transition Proposals – Land • Working on Land: • Spekboom • Reforestation; • Anti-desertification; • Biofuel. • Garden cities. • Indigenous fauna.

13. COSATU Just Transition Proposals – Mines • Rehabilitation of mines. • Addressing acid mine water. • Technology components.

14. COSATU Just Transition Proposals – Recycling • Expanding and building comprehensive recycling industry targeting industries and consumers: • Plastics, • Glass; • Paper, • Wood, • Tyres; • Metals; and • Refuse.

15. COSATU Just Transition Proposals - Industries • Sustainable technology and methods for: • Agriculture, aquaculture, fishing and forestry; • Construction: cement and other materials; • Clothing: organic vs. conventionally grown fibres; • PIC green industry investments and requirements.

16. COSATU Revenue Proposals • Carbon tax revenue invest in green economy job creation; • Green job creation incentives & rebates; • Eskom tariff hikes limited to inflation; and • Government mitigation plan for the poor e.g. VAT exempt essentials.

17. Conclusion • Support SCOF resolution that Government and Nedlac to be called to report to Parliament quarterly on implementation of Jobs and Investment Plans