Transitioning SA's Petrochemical Value Chain

South Africa is part of an international community, which has required that it makes commitments to contributing to the global decarbonisation effort. Given the trajectory of climate science findings, the decarbonisation imperative will intensify, which will require that these contributions become more ambitious over time.

The country has to walk a tightrope of balancing domestic socio-economic and political realities with international decarbonisation pressure. This terrain is strewn with virtuous and vicious cycles.

Increasingly coherent and ambitious domestic decarbonisation policy will attract more concessional climate finance support for the transition, further supporting the economy and from here, fiscus, which can bolster inclusivity. However, a weakening state could tip into a vicious cycle of incoherent policymaking, lack of implementation, and withdrawal of investment.