Climate Policy Engagement Analysis
National Business Initiative Summary
Climate Policy Engagement Overview: National Business Initiative (NBI) has active and positive engagement on the energy transition in South Africa, however it has expressed some support for fossil gas. NBI’s engagement with climate-related regulations such as the South African Integrated Resource Plan is also positive, albeit limited.
Top-line Messaging on Climate Policy: NBI has consistently positive top-line messaging on climate-related policy. On its corporate website, accessed May 2024, NBI supported achieving net-zero greenhouse gas emissions by 2050. The association also supported limiting warming to 1.5°C in its July 2022 ‘It All Hinges on Renewables’ report, and expressed support for carbon pricing in South Africa on its ‘Carbon Pricing’ webpage, accessed May 2024. NBI Chairperson Cas Coovadia also appeared to support the COP process in NBI’s Annual Report 2022, published January 2024.
Engagement with Climate-Related Regulations: NBI has positive positions on climate regulations, although its engagement is limited. On its corporate website, accessed in May 2024, NBI supported South Africa’s Carbon Tax, stating that it is critical for companies to engage with the South African National Treasury and its plans for a carbon tax, and for companies to ensure it is implemented in a way that allows the transition to a low-carbon economy. In its Financing South Africa’s Just Transition report, published December 2022, NBI supported accelerating South Africa’s Renewable Energy Independent Power Producer Procurement Programme. Additionally, NBI strongly supported increasing the ambition of renewable energy provisions under South Africa’s Integrated Resource Plan 2019 in a December 2022 report.
Positioning on Energy Transition: NBI appears to strongly support the transition of the energy mix, particularly in South Africa, however it has mixed positions on the deployment of fossil gas as a transition fuel. NBI has shown strong support for the transition towards renewable energy from 2022-2024. In a July 2022 report titled ‘It All Hinges on Renewables’, NBI strongly advocated for the transition to a renewables-dominated energy mix in South Africa. The organization called for a change to the status quo in the energy sector, and supported an improved policy-environment to allow for the large-scale deployment of renewables, including wind and solar, in South Africa. In a May 2024 BusinessLive article, NBI CEO Shameela Soobramoney supported the decarbonization of the South African economy to increase the share of renewables in the energy mix.
NBI has also strongly supported the decarbonization of the mining, chemicals, power, agricultural, transport, heavy industry, and cement sectors in South Africa in its ‘Just Transition and Climate Pathways Study for South Africa’ report series, published from October 2021 to August 2023.
In its December 2022 Financing South Africa’s Just Transition report however, NBI appeared to support the role of fossil gas for “seasonal balancing”. Despite this, in its February 2022 ‘The Role of Gas in South Africa’s Path to Net-Zero’ report, NBI supported the phase-out of fossil gas in the South African energy mix by 2050, and supported the repurposing of natural gas assets to be used in the production of green hydrogen. Furthermore, in a July 2022 report, NBI was unsupportive of tapping Southern African gas reserves, stating that the long lead times and risk of stranded assets outweighs the socio-economic benefits. The IPCC recommends that unabated fossil gas be completely phased out of the global energy mix, within timelines between 2020-2050; NBI seems to hold positions that, for the majority, align with the IPPC’s recommendations.