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Transition to cleaner energy will take time. SA will rely on coal for foreseeable future

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What was once a looming dark cloud has now become a full-blown storm as the climate emergency is very much here.

With global citizens calling for the recognition of the climate crisis on the International Day of Peace (September 21), and world leaders convening at the UN’s Climate Action Summit two days later with plans to implement the Paris Agreement, it is encouraging to see the start of real action to lessen the emergency.

One such effort is the increasingly strident anti-coal lobby.

However, South Africa is faced with immense social and economic challenges that we must deal with before we can respond to the use of coal as a source of power in a way that is appropriate for our country.

An appropriate response is a just energy transition – justice in the shift from coal-based electricity to renewable energy input, while managing the effect this will have on the poor and minimising negative effects on the country’s socioeconomic status.

With an economy struggling to grow, an alarmingly high unemployment rate and high levels of poverty, we have to be considerate and informed about proclamations that coal won’t be relevant in South Africa’s future.

On the contrary, I believe South Africa will be dependent on coal for electricity in its energy portfolio for the foreseeable future.

The most recent Integrated Resource Plan anticipates that 46% of our electricity will be generated from coal by 2030.

To replace the current energy generation capacity with alternative sources will take time to implement and will require significant capital, as well as holistic industry leadership in terms of diversity and character.

Transitioning to cleaner sources of energy is an imperative, but it’s not going to happen overnight.

Coal will not disappear as a vital energy source, though its share may reduce.

Notwithstanding the prevailing environmental arguments, the sociopolitical and economic impact of downscaling our country’s coal operations cannot be ignored – without our coal sector, South Africa would be crippled.

Transitioning to cleaner sources of energy is an imperative, but it’s not going to happen overnight.

As coal production and related industries decline, jobs, regional economic development, and political and environmental impacts will all require attention.

Given the many different areas the energy transition will affect, the process needs to be viewed as a shared challenge for all – in government, in mining corporations and businesses in general, in trade unions and in communities.

Planning an energy transition requires an understanding of the challenges that lie ahead.

The plan needs to take potential unemployment, economic stagnancy, the deindustrialisation of manufacturing and resource restrictions into consideration, ensuring that all stakeholders are aware of the potential, far-reaching effects of the transformation, and encouraging a national and subnational collaboration to support and execute these forward-thinking strategies.

With more than 100 000 people employed in the extractive industries and electricity generation sector, trade unions like Cosatu have called for a “just transition” for coal workers and coal communities, highlighting the importance of creating alternative employment opportunities in affected regions.

A detailed employment protection plan for the current workforce is needed to ensure communities, employees and unions are not neglected during the transition.

South Africa must urgently engage in an energy transition if we are to avoid a full-blown climate crisis, which will compound existing social crises.

In addition to this, technical skills development is crucial for transferability between sectors, so more focus on strategies that promote labour redeployment, upskilling and retraining is required.

According to the most recent Quarterly Labour Force Survey from Stats SA, 70% of coal mineworkers have at least a Grade 12 qualification. While this means they are considered to be relatively skilled, we know that a higher level of education and a more technical and varied skills set opens doors for further job opportunities.

According to Greenpeace Africa, South Africa must urgently engage in an energy transition if we are to avoid a full-blown climate crisis, which will compound existing social crises.

Greenpeace states that at least 4.7 million jobs will be created by 2050 across energy sectors in Africa.

The implementation could also become a massive employment programme if managed effectively.

Provinces that are at the epicentre of coal mining and electricity generation from coal should be included in the impending shift.

Greenpeace states that at least 4.7 million jobs will be created by 2050 across energy sectors in Africa.

Canada’s government is working to ensure the transition away from coal power is a fair one for coal workers and communities.

To better understand the impacts of phasing out coal and how to support those affected, Canada launched a task force on a just transition for Canadian coal power workers and communities last year, resulting in proposed new actions, including a dedicated multimillion-dollar infrastructure fund to support priority projects and economic diversification.

Mxolisi Mgojo is the CEO of Exxaro Resources


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