Transitioning SA's Petrochemical Value Chain

State management of the transition is necessary to ensure the optimal allocation of resources and to protect the vulnerable (Source: Civil Society Engagement, Business Engagement), with a Business Engagement calling for a social compact between business, government and civil society related to the just transition.

In the Business Engagements it was argued that government needs to support companies needing to transition, especially those of such size and strategic importance to the country, and that currently this is not being done. An unsupportive policy and fiscal environment presents a risk that transitioning companies will increasingly look to exit South Africa. In the case of physical assets such as Secunda and Sasolburg, these cannot be moved, highlighting a need for determining what their role will be in a decarbonised economy.

Complex questions are raised in terms of which companies, facilities or assets should be supported in a transition, and which will be left as stranded, and linked to this point, how scarce transition capital should be allocated.  It is inevitable that some companies and facilities will not survive the transition.