COVID-19 MACROECONOMIC POLICY RESPONSES IN AFRICA 17 - South Africa’s Post-COVID

For South Africa, the significant impact that COVID-19 has had on the economy, considered together with the outcomes of the 26th Conference of the Parties (COP26), has put it in a unique 3 South Africa’s post-COVID climate response and the path to its NDC goals position to pursue a green recovery and meet its nationally determined contribution (NDC) commitments. [...] South Africa’s climate action leading up to the NDC update Global responses to climate change and recognition of the negative effects thereof escalated noticeably with the introduction and ratification of the Paris Climate Agreement, the product of the 21st Conference of the Parties (COP21) to the UN Framework Convention on Climate Change (UNFCCC). [...] South Africa’s increased ambitions in the NDC, particularly in respect of climate change mitigation, signals acceptance of the urgency with which the country and the rest of the world need to act to avert the catastrophic outcomes that would result from global warming rising above the 1.5oC threshold. [...] The package was presented as part of the supplementary budget ‘designed to help households and businesses to weather the short-term effects of the crisis’.15 However, an analysis of the supplementary budget shows that the stimulus package was generally neutral with respect to the climate agenda as its focus was on the immediate economic impact of the pandemic.16 Apart from a ZAR 2 billion job crea. [...] The commissioning of the of the use of the old power Medupi and Kusile coal plants in 2015 and 2017 respectively plants together with undermines efforts towards clean energy transformation Medupi and Kusile should be and raises questions about the political will to follow through accurately reflected in the on all aspects of the NDC.