June 2019

Policy brief Governance of climate change policy: A case study of

Headline issues Policy briefs provide analysis on topical issues, presenting specific • South Africa has a sophisticated climate governance system but faces recommendations to inform ongoing a range of challenges in implementing its national climate policies policy debates. Drawing on the • Limited public sector capacity and dedicated financial resources are Grantham Research Institute’s expertise, they summarise either our research hampering climate change governance and implementation findings or the state of knowledge about • A new President and an increase in attention on climate and clean a particular issue. energy policy make this an opportune moment to act This policy brief has been written by Alina Averchenkova, Kate Elizabeth Gannon Summary and Patrick Curran. South Africa has an elaborate and consultative system of climate governance and policy compared with many developing and emerging economies. As it moves to implement its national climate goals it faces important domestic challenges that need to be addressed. Some arise from overstretched human and technical capacity; others result from structural issues. These challenges have been exacerbated by several years of political crisis and ‘’.

Key cross-cutting strategies on climate change are in place, but these policies are not aligned and implementation has often been delayed. These systemic issues have been a roadblock for the implementation of South Africa’s nationally determined contribution (NDC) to the Paris Agreement and will continue to be so unless they are addressed.

The development of policies and strategies needs to be aligned with the objectives of the NDC, with renewed high-level commitment and a clear mandate created for a lead agency. Also needed are a comprehensive finance strategy, improved consultation fora, better data and information, and the discussion to be framed around developmental benefits and opportunities – including poverty reduction, clean energy access for communities, and opportunities from low-carbon growth and innovation. Climate governance and Lack of policy alignment and “The lack of challenges in South Africa delays to implementation National climate change South Africa has put in place an governance in South Africa is alignment and elaborate and consultative climate the product of more than two governance system, especially when decades of policy evolution and has policy coherence compared with other developing been shaped by a comprehensive and emerging economies. As the landscape of executive policies, is a systemic issue country moves to implement its strategies, regulations and national climate goals and ramp institutions (see Figure 1). The 2004 that could become up its ambitions to meet the Paris National Climate Change Response Agreement, it faces important Strategy, followed by the National a roadblock for the domestic challenges that need to Climate Change Response White be addressed. These challenges Paper (NCCRWP), approved in 2011, implementation are diverse in nature: some arise form the foundation. In 2012 climate from overstretched human and change became a key element of of South Africa’s technical capacity. Others result the country’s overarching National from structural issues, such as Development Plan. NDC to the Paris historical tensions between the main players, lack of clarity in the While there are a number of policies Agreement” assignment of responsibilities, lack that operate across multiple of ownership over implementation sectors, there are also those that agendas, multiple ministries are targeted at avoiding emissions dealing with issues concurrently or supporting more specific sectors. without sufficient coordination, The development of these sectoral and cumbersome and ineffective level policies in South Africa is communication practices. skewed by the greenhouse gas emissions profile of the country, The challenges have been with high-emissions sectors such exacerbated by a wider political as energy having more developed context of several years of political climate policy landscapes. These crisis and ‘state capture’1 over the strategies are cross-cutting and past 10 years, which resulted in gave a start to several specific uncertainty over the direction of policy mechanisms, including the climate change and energy policy, Renewable Energy Independent distracted leadership and low Power Producer Procurement political will to act further. Programme (REIPPPP) and the Based on extensive expert cross-sectoral carbon tax. However, interviews and the analysis of the since 2010/11 climate change policy key policy documents (see Box 1), overall and, in particular, mitigation this brief examines the governance policies in the energy sector, have challenges and identifies been delayed. opportunities for addressing them Polices on adaptation and resilience to enhance implementation of have had little focus to date. A climate policy. While some of the draft National Climate Change governance challenges, such as Adaptation strategy was released those around tensions between in 2017 for public comment but has 1. Transparency International defines state the state and private sector, are capture as “a situation where powerful not yet been approved. relatively more important in South individuals, institutions, companies or A systemic issue that could groups within or outside a country use Africa than in some other countries become a roadblock for the corruption to shape a nation’s policies, owing to its history and recent legal environment and economy to political dynamics, most issues are implementation of South Africa’s benefit their own private interests” also relevant to other emerging and nationally determined contribution (Transparency International, 2014). developing economies. (NDC) to the Paris Agreement is

2 Policy brief — June 2019 Governance of climate change policy: A case study of South Africa Figure 1. Timeline of climate-related policy by sector plus key political events, 2004–19

Interim Interim President: Presidency President: Thabo Mbeki President: President: President: Jacob Zuma President: Cyril Ramaphosa (2nd term)* KM (1st term) (2nd term)* CR (1st term) Political Deputy President Cabinet President movements President (JZ) (TM) reshu e: (JZ) removed removed Cabinet Finance removed reshu es: Minister Finance (PG) Minister (NN) + Deputy Cabinet Cabinet New Cabinet Cabinet Cabinet Cabinet New removed – (MJ) Cabinet reshu e reshu e cabinet reshu e reshu e reshu e reshu e cabinet ‘Nenegate’ removed reshu e Annual Sector 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 emissions 2004 2005 Cross-cutting National National National Nationally National Carbon Climate Change Climate Development Determined Climate Tax Bill 525 Response Change Plan Contribution to Change Bill MtCOe Strategy Response Paris Agreement White Paper

Energy Non- SANS 204: Energy Section 12L National renewable Eciency in Buildings of Income Integrated Energy Tax Act Resource Plan 401 electricity Integrated Resource Act levy for Energy MtCOe Plan for Energy (2018) (2010–30)

Section Industrial IPAP IPAP IPAP IPAP IPAP IPAP IPAP 12K Policy 2011/12– 2013/14– 2014/15– 2015/16– 2016/17– 2017/18– 2018/19– Industry of Action Plan 2013/14 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 Income (IPAP) National Greenhouse Tax Act 2010/11– 22 Gas Emission 2012/13 MtCOe Regulations National Pollution Prevention Plan Regulations

Agriculture National Climate Change Climate Smart 30 Sector Plan Agriculture MtCOe Strategic Framework

Waste National 19 Environment MtCOe Management: Waste Act

Transport Biofuels Environmental 53 Regulatory levy for CO Carbon Tax Framework on motor Fuel Levy MtCOe vehicles

Adaptation/ resilience Disaster Draft National Management Climate Change n/a Amendment Adaptation Bill Strategy

Notes: *Full term not completed due to resignation. Only policies related to climate change or specically targeted at supporting initiatives aimed at climate change action are included. Italics denote policies that are in preparation or undergoing consultation but have not yet been formally approved (either by Parliament or Cabinet). Year signies when draft was rst published for consultation. CR – Cyril Ramaphosa JZ – Jacob Zuma KM – Kgalema Motlanthe MJ – Mcebisi Jonas NN – Nhalanla Neme PG – TM – Thabo Mbeki. MtCOe = million tonnes of carbon dioxide equivalent

Box 1. Study methods This study is based on 30 semi-structured interviews with active or former civil servants, policy experts and private sector representatives in South Africa conducted over the period October 2017 to March 2018. Two interviews were in a group setting with two experts each, so the overall number of experts interviewed was 32. The interviewees were selected to cover a range of relevant perspectives, from a number of sectors and with different stances towards climate change policy, based on direct engagement in the climate change debate or policymaking. While some could be characterised as broadly supportive of climate change action, others represented carbon-intensive industries that may stand to lose out from ambitious climate action. Ten of the interview respondents were women. The interviews were transcribed and analysed qualitatively through thematic content analysis with the aid of NVivo software to identify themes and stories and to extract relevant direct quotes. In addition, we held several background discussions with experts and carried out a literature review.

Governance of climate change policy: A case study of South Africa Policy brief — June 2019 3 the lack of alignment and policy relationships between different coherence: in other words, the gap governance elements are not well “There is a shortage between climate change goals established and in some cases and the objectives set in other key this has led to a lack of clarity of capacity to strategies and policy documents surrounding how policies will be that determine the trajectory of jointly implemented and aligned. deal with climate development. This lack of alignment The lack of aligned position impacts was particularly important for the the effectiveness of the public sector change and related period 2010 to 2018 in the case of in producing and implementing the Integrated Resource Plan (IRP), climate policies and also impedes policies within the which determines South Africa’s engagement with and policy strategy for energy generation for signalling to other stakeholders, Government that the next 20 years. It is also relevant especially the private sector and for other sectoral policies, including investment community; as seen, for stems from limited the Industrial Policy Action Plan. example, in the ongoing discussions human and financial Comprehensive governance about the alignment between the mechanisms but with varying carbon tax and budgets. resources, and a effectiveness Limited public sector Technically, South Africa has a capacity and dedicated shortage of relevant comprehensive system for vertical financial resources and horizontal coordination. expertise and skills” The NCCRWP recognises that to There is a shortage of capacity ensure sustainable development to deal with climate change and a just, managed transition and related policies within the to a low-carbon society, policies Government that stems from need to be aligned both vertically limited human and financial (from national to local levels) and resources, and a shortage of horizontally (between national relevant expertise and skills. departments). It sets out an Several key agencies are generally obligation for all government understaffed. This situation is departments and state-owned exacerbated by the growing enterprises to align their policies, complexity of work involved in strategies and regulations. designing and implementing sectoral and multi-sector The Inter-Ministerial Committee on decarbonisation and resilience Climate Change, Intergovernmental policies. These challenges are Committee on Climate Change more acute at provincial and and the Forum of South African municipal levels. Directors General are the key mechanisms for coordination. Also in short supply are the Every climate change-related financial resources needed to policy must further pass through augment governance capacities a comprehensive stakeholder to work on climate change in the engagement process, including key agencies and for financing through the National Committee policy implementation and the on Climate Change and the underlying investments in the National Economic Development low-carbon and climate-resilient and Labour Council. transition. One of the critical gaps underlying the shortage of finance However, ensuring coherent policy is the lack of a comprehensive formulation and implementation climate finance strategy to define remains challenging due to the the allocation of resources to fragmented nature of responsibility support climate change work and for climate policy. Clear to attract international funding

4 Policy brief — June 2019 Governance of climate change policy: A case study of South Africa and investment. Furthermore, are run: for example, concerns there is a shortage of skills and around continuity, and a lack of capacity among the government transparency on how feedback “Tensions arise departments, devolved from stakeholders is dealt with. administrations and private actors These issues are prevalent due to mistrust, to prepare financeable project throughout South Africa’s political propositions. discourse and economic structure difficulties Gaps and constraints in – but climate is a policy area in historical information and data where constructive interaction between the public and private The need to improve the availability sector is particularly important for relationships, and of credible data on current making progress. and projected greenhouse gas questions around emissions and their mitigation Opportunities to potential is another challenge, and overcome barriers to the pace, scale and prompts wider concerns about the climate governance legitimacy of targets and policies. form of policies” Addressing these challenges will South Africa is now moving require improvements to the from climate policy planning to collection of information and to implementation, further exposing the measurement of progress, the challenges around climate including rigorous reporting and change governance and making the evaluation frameworks with clear need to address them increasingly common indicators. urgent. Change in the leadership of the country and a new momentum Mistrust of public–private in the discourse towards giving engagement greater importance to climate Fora to facilitate horizontal and energy policy make it an coordination between stakeholders opportune moment. The process of have been established, including consultation on the draft climate those to facilitate constructive change legislation recently launched engagement and discussion by the Government, as well as the to build informal and personal new draft Integrated Resource relationships (for example by Plan (IRP), offer opportunities for the National Business Initiative). discussing and implementing some However, tensions remain and are of these improvements. often accompanied by calls for Recommendation 1: policy proposals to be changed Align development policies and and delayed. These tensions strategies with the objectives arise due to mistrust, difficulties of the nationally determined in historical relationships, and contribution (NDC) questions around the pace, scale and form of policies. They Successful implementation of exist both between and within South Africa’s NDC requires that government departments, state- its objectives are strongly anchored owned enterprises, academic in the National Development research centres, civil society and Plan, the Medium-Term Strategic trade unions. Framework and developmental and management plans at While some issues are embedded provincial and city levels. It could in the general dynamics of the be useful to include a requirement relationships between public to mainstream climate change sector and non-state actors in and to cooperate with other South Africa, many are related to agencies in the performance the ways in which consultations

Governance of climate change policy: A case study of South Africa Policy brief — June 2019 5 goals and monitoring frameworks a transparent and continuous for each ministry and into the process focused on policy alignment “The successful budget planning cycle, and for the and coordination, led by a strong performance metrics to include government agency that has a implementation policy coordination and integration. clear mandate from the highest The draft 2018 Integrated Resources political level to coordinate this of climate Plan, which sets the future process. A system of common energy strategy (currently under planning and monitoring indicators policy requires consultation), is an important or outcome templates could help step in the right direction, having facilitate the coordination of renewed political integrated the NDC objectives in implementation, backed up by its scenarios and included a clear an iterative process of reflection, commitment and target for renewable capacity. learning and integration of lessons. Similarly, the reinstatement of the Provincial and city governments leadership from Renewable Energy Independent should have strong representation Power Producer Procurement in this process. This forum should the highest level Programme (REIPPPP) in 2018 was be chaired and convened at a high a welcome step. It is important that level (for example, ministerial), and and a unified the Government’s commitment to include senior representatives from these programmes and objectives is the private sector and civil society approach from the sustained and integrated into other to discuss issues, challenges and Government” sectoral policies. coordination. Recommendation 2: Recommendation 4: Renew high-level commitment Develop a comprehensive and empower key agencies finance strategy through clear mandates Effective implementation of the Successful implementation of NDC and the transition to low- climate policy requires renewed carbon and climate-resilient political commitment and development requires allocation of leadership from the highest level resources and strategic realignment and a unified approach from the of budgets. Development of the Government. There needs to be a national climate finance strategy, clear mandate for a lead agency as mandated by the White Paper, entrusted with coordinating should be among the priority implementation and for each of the actions. Establishing a designated sectoral agencies to designate staff coordination mechanism on finance and resources and to implement for NDC implementation could policies, based on the existing help align existing – and mobilise work and lessons learnt from new – sources of funding. National past experiences. A consideration government should also assist the should also be given to which provincial and municipal levels by agency is best suited to lead on the providing guidelines and capacity- coordination of the implementation building on how to prepare projects. of the national climate change It should also make targeted objectives, taking into account funding available. their technical expertise, political Recommendation 5: standing and availability of Frame the climate change resources. discussion around developmental Recommendation 3: benefits and opportunities Launch a forum focused on Linking climate policy to poverty implementing the NDC reduction objectives, clean energy Moving to implementation requires access for communities and

6 Policy brief — June 2019 Governance of climate change policy: A case study of South Africa stimulation of new low-carbon outside bureaucratic processes industrial growth and innovation without being entrenched is key to leveraging buy-in and into formal positions of the “Changing the effective engagement across constituencies they represent. This levels of governance, horizontally effort should be facilitated by a mode and tone and vertically. In order to engage neutral broker who is trusted by the relevant sectoral agencies both the Government and private of engagement, in implementing the NDC, it is sector. It should build on past important to demonstrate the experiences and focus on concrete and emphasising co-benefits of the interventions implementation challenges. and opportunities, and positive transparency in National government and synergies for advancing municipalities should also sectoral agendas, while addressing the Government’s look for and cultivate ‘climate climate change. champions’ that could catalyse methods of dealing Recommendation 6: action. Furthermore, developing Improve existing consultation personal relationships that move with stakeholder and engagement fora away from ‘political lines’ to interactions as individuals, and The effectiveness of the existing feedback, would aid investing in improving interaction mechanisms for engaging processes, should be considered as stakeholders could be improved communication with part of key measures to improve by expanding their membership the effectiveness of climate (for example, by inviting the Inter- stakeholders” governance. This would help Ministerial Committee on Climate overcome obstacles in horizontal Change to meet with company and vertical coordination and CEOs), by engaging with the stakeholder engagement. relevant sectors more consistently, Practically, this could be done and by making their participation in through participatory training or the main fora mandatory through pilot projects that bring together direct, high-level mandates. experts from different sectors and Changing the mode and tone of stakeholder groups. engagement, and emphasising transparency in the Government’s Recommendation 8: methods of dealing with Improve data, information and stakeholder feedback, would aid public awareness communication with stakeholders. Developing and implementing It is also important that the NDC and climate policies senior experts with a good more broadly requires improving understanding of business the data and information base. perspectives lead the engagement Continuing to strengthen public on the Government’s side. engagement to build awareness Recommendation 7: of climate change and related Invest in strengthening actions and policies, alongside the relationships between facilitation of climate activism, stakeholders and the processes should form an important part of of interaction the NDC implementation strategy. Consideration should be given to Providing opportunities for all improving ways of sharing expert stakeholders to engage informally information and research relevant in non-governmental fora is key for the low-carbon and climate- for breaking down the current resilient transition, making it more barriers inhibiting public–private accessible to the public sector and engagement. Spaces are needed other stakeholders. where all parties can collaborate

Governance of climate change policy: A case study of South Africa Policy brief — June 2019 7 References and Department of Environmental Affairs further reading [DEA] (2011) National Climate Change Grantham Research Institute on Response White paper. Government of the Climate Change and the Environment Averchenkova A (2014) Barriers in Republic of South Africa, Pretoria. developing national mitigation strategies www.environment.gov.za/sites/default/ London School of Economics and and actions in developing countries. files/legislations/national_climatechange_ Political Science UNDP LECB Programme Global Support response_whitepaper.pdf Houghton Street, London, WC2A 2AE Unit Department of Environmental Affairs e [email protected] Averchenkova A (2017) ‘Engaging [DEA] (2016) South Africa’s 1st Annual w lse.ac.uk/granthamInstitute Private Sector and Mobilizing Private Climate Change Report. Finance through Mitigation Actions in www.environment.gov.za/ Developing Countries’, in Markandya otherdocuments/reports/southafricas_ A, Galarraga I and Ruebbelke D (eds.) firstnational_climatechange Climate Finance: Theory and Practice, Government of South Africa (2015) pp. 55-78. World Scientific. DOI: South Africa’s Intended Nationally 10.1142/9789814641814_0004 Determined Contribution (INDC). Curran P (2018) As South Africa’s carbon www4.unfccc.int/ndcregistry/ tax is delayed again what is the story so PublishedDocuments/South Africa First/ far? 24 October 2018. www.lse.ac.uk/ South Africa.pdf GranthamInstitute/news/as-south- Transparency International (2014) State africas-carbon-tax-is-delayed-again- capture: an overview. www.transparency. what-is-the-story-so-far/ org/files/content/corruptionqas/State_ Curran P (2019) How ready is South capture_an_overview_2014.pdf Alina Averchenkova is a distinguished policy fellow Africa for a new fuel levy to reduce Trollip H and Boulle M (2017) Challenges and the lead for the Governance and Legislation greenhouse gas emissions? 15 March 2019. research programme at the Grantham Research associated with implementing climate Institute and CCCEP. Kate Elizabeth Gannon is a www.lse.ac.uk/GranthamInstitute/news/ change mitigation policy in South Africa. research officer in the Sustainable Development how-ready-is-south-africa-for-a-new- research team at the Grantham Research Institute. Energy Research Centre, University of fuel-levy-to-reduce-greenhouse-gas- Patrick Curran is a policy analyst and advisor to Cape Town Professor Nicholas Stern at the Grantham Research emissions/ Institute.

This research is supported by the British Academy’s Sustainable Development Programme, SDP 2016. The authors further acknowledge financial support from the Grantham Foundation for the Protection of the Environment, and from the UK Economic and Social Research Council through its support of the Centre for Climate Change Economics and Policy.

The authors are grateful to the 30 government officials, politicians, industry stakeholders and policy experts who participated in the formal interviews for this study. Their insights inform the core of the longer report on which this brief is based. We are also grateful for comments and feedback from Emma Archer, Jonathan Barnes, Declan Conway, Kathy Read the full report (40pp) at: Hochstetler, and Richard Perkins, as well as to Michal www.lse.ac.uk/GranthamInstitute/publications Nachmany and Joanna Pardoe at the Grantham Research Institute for their valuable logistical and technical support in the design of this study. Governance of climate change policy: A case study of South Africa Georgina Kyriacou edited and designed this brief.

Alina Averchenkova, Kate Elizabeth Gannon and Patrick Curran This policy brief is intended to inform decision-makers

Policy report in the public, private and third sectors. It has been June 2019 reviewed internally and externally before publication.

The views expressed in this brief represent those of the authors and do not necessarily represent those of the host institutions or funders.

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© The authors, 2019. Published by the Grantham Research Institute on Climate Change and the Environment and Centre for Climate Change Economics and Policy, 2019

8 Policy brief — June 2019 Governance of climate change policy: A case study of South Africa