South Africa Risks $124 Billion In Face Of Low-Carbon Transition if it does not begin to shift away from its reliance on coal for power and export value
This is the conclusion from a report published Tuesday by London-based global think-tank Climate Policy Initiative (CPI) entitled Understanding the impact of a low carbon transition on South Africa, which seeks to evaluate the risks to South Africa from a global economic transition to a low-carbon economy between 2013 and 2035. Specifically, CPI’s Energy Finance team has been working with a range of partners to design a methodology and the supporting models to evaluate the risk that countries, companies, and the financial sector is likely to face from a global economic transition to a low-carbon economy.
It’s also important to note that the majority of risks facing South Africa come from factors that are beyond the country’s control, such as changes to global coal and oil markets that will be driven by changes to global demand. As more and more countries look to minimize their own reliance on coal and oil for energy generation, South Africa’s export market will be hit hard, which will in turn affect not just the mining sectors, but all the tangential sectors which rely on the mining sector for their own continued success.
CPI also expects that much of the risk to South Africa’s export sector could “crystallise quickly in the mid-2020s” causing a subsequent shock to the system with repercussions across the wider economy if companies and government have not prepared for it.
We live in a global economy and a country's fortunes are tied in with its trading partners so their partners' changes in demands also affect the demand for goods it wants to market.
See cleantechnica.com/2019/04/10/s…
#coal #econmics #renewableenergy
source https://squeet.me/display/962c3e10-605c-b1d4-0c26-ae3993781051
It’s also important to note that the majority of risks facing South Africa come from factors that are beyond the country’s control, such as changes to global coal and oil markets that will be driven by changes to global demand. As more and more countries look to minimize their own reliance on coal and oil for energy generation, South Africa’s export market will be hit hard, which will in turn affect not just the mining sectors, but all the tangential sectors which rely on the mining sector for their own continued success.
CPI also expects that much of the risk to South Africa’s export sector could “crystallise quickly in the mid-2020s” causing a subsequent shock to the system with repercussions across the wider economy if companies and government have not prepared for it.
We live in a global economy and a country's fortunes are tied in with its trading partners so their partners' changes in demands also affect the demand for goods it wants to market.
See cleantechnica.com/2019/04/10/s…
#coal #econmics #renewableenergy
source https://squeet.me/display/962c3e10-605c-b1d4-0c26-ae3993781051
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