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South Africa’s Climate Change Act: Balancing a Greener Economy with Job Security

Azra Hoosen | ah@radioislam.co.za
2 February 2025 | 21:00 CAT
2 min read

South Africa is facing the challenge of reducing carbon emissions while ensuring job security and economic stability. The Climate Change Act 22 of 2024 commits to a just transition, but what does this mean in practical terms for workers, industries, and policymakers?

According to Professor Debbie Collier, Professor of Law and Director of the Centre for Transformative Regulation of Work, the concept of a just transition has two key components. “The transition part is about shifting our economy to a low-carbon economy, focusing on the environment and industry. However, if we do this without taking care of the just part, we risk exacerbating unemployment, inequality, and poverty,” she explains.

A just transition aims to ensure that workers and communities are not left behind in the move away from fossil fuels. “We need to create sustainable jobs, ensure skills development, and provide training so that workers retain jobs or find new opportunities. Social protection for workers in transition is also crucial, ensuring that they are adequately skilled, reemployed, or trained to become self-employed. The just part is about fairness in the transition to a low-carbon economy,” she said.

One of the major concerns in this transition is the potential skills deficit. “In some cases, workers may already have the skills they need, depending on their current jobs. However, in many cases, new skill sets will be required. This means a lot of planning is necessary, including a skills audit. A successful just transition requires assessing current skills, identifying future skill needs, and developing training plans to bridge the gap,” she said.

South Africa can learn from countries that have successfully implemented just transition policies. “Germany is a key partner with South Africa in this transition, particularly in the automotive sector, where they have transition agreements in place. Spain has a just energy transition strategy for coal mine closures, ensuring workers can shift from fossil fuels to new forms of energy production. Another example is Qatar, which introduced regulations to protect workers from heat stress, particularly in the lead-up to the World Cup. These regulations have had a significant impact in reducing heat-related illnesses for workers,” she noted.

Incentivising businesses and industries to adopt sustainable practices while maintaining job security is a complex challenge. “Government needs to take the lead in providing incentives such as tax breaks and subsidies for green investment. Public procurement policies can also encourage sustainable business practices. This is not just about businesses that directly contribute to carbon emissions. Even industries that are not required to transition should be having conversations about adopting sustainable practices,” she explained.

According to Prof Collier, Job security is a critical concern; she said: “This is not just up to businesses; it requires government direction to ensure that social security and protection measures are in place. There are existing models we can build on, such as the Temporary Employer/Employee Relief Scheme (TERS), which has been used to prevent retrenchments through training programs.”

A just transition must also include workers outside formal employment. “Many workers in South Africa are self-employed or in informal work. The just transition is not just about protecting those in formal employment, given our high unemployment rate. Traditionally, the key players in labor market discussions have been organised business, organized labor, and government at a national level, such as in the NEDLAC space. However, local government will have an increasingly important role to play,” she says.

Prof Collier highlighted that renewable energy sources are often more distributed than fossil fuel-based energy, requiring a coordinated approach, stating, “This transition is not something that can be achieved overnight. We need to be realistic and plan for five, ten, or fifteen years into the future. It is not a single process but multiple processes that need to take place simultaneously.”

As South Africa navigates this transition, balancing environmental responsibilities with economic stability remains a critical task. Through strategic planning, skills development, and multi-level collaboration, the country can move towards a greener economy while ensuring that no worker is left behind.

LISTEN to the full interview with Ml Habib Bobat and Professor Debbie Collier, Professor of Law and Director of the Centre for Transformative Regulation of Work, here.

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