South Africa develops national decarbonisation action plan

Sharing the costs of decarbonisation

SOUTH AFRICA: As South Africa sets out on its journey to develop its own National Action Plan for decarbonisation, experts are calling for the substantial costs of implementing the infrastructure and other obstacles to be shared across the export/import value chain.

Speaking at the Future Green Maritime Networking reception hosted in Cape Town last night by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the Department of Transport, DDG Mthunzi Madiya, confirmed that South Africa has applied to the International Maritime Organisation (IMO) to receive technical assistance offered to developing countries via the GreenVoyage2050 programme.

Highlighting the importance of tackling the strategy, Madiya noted that the country would be investigating not only the option of green hydrogen as it develops a strategy, but also other alternative fuels such as ammonia and methanol.

“In our transition to net-zero we need to invest in the move to green fuel,” he said, adding that the process required the input of several government departments and entities. The networking reception was hosted during dedicated a training initiative for these institutions.

“We are trying to solve a complex issue, but South Africa must not be left behind. This training comes at an opportune time,” he said.

In his opening address at the networking function,  DDG set the scene for the country to play a role as a green fuel bunker supplier. “We need to position South Africa as a bunker store and take advantage of our coastline,” he said, adding that the investment in the port system should be integral to this plan.

Focusing on overcoming challenges

Facilitating a panel discussion implementing the country’s ambitions, Estee Miltz posed questions to Pulane Manale of the DOT, Amanda Makgoga from TNPA, Andrew Millard of Vuka Marine and Vanessa Davidson from Freeport Saldanha to focus on the challenges and potential enablers South Africa faces.

Manale echoed the DDG’s comments around the work currently being undertaken within the parameters set out for South Africa as a member state of the IMO. “The DoT’s role is to ensure that policy and legislation for the maritime sector ensures that we comply with IMO Conventions, but we are a developing country and we need the assistance currently being offered by the IMO,” she told the audience.

She committed the DoT to creating the enabling environment for investment in green fuel opportunities and highlighted some of the funding mechanisms that currently exist within the Green Fund Account as well as the Global Environment Fund.

Manale also confirmed that the previously approved Green Transport Strategy is being revised to cohesively address all transport modes.

According to Makgoga of TNPA, the port authority is investigating the use of incentives as a framework to promote the decarbonisation of vessels using the port system. She also discussed the need to explore the ideal port in which to position a green fuel hub.

She called on all entities to work together. “The days of working in silos are gone. We all need to understand the rules and speak the same language.”

With ambitions to position the Port of Saldanha as a green hydrogen fuel hub, Freeport Saldanha has been collaborating in the space for some time now. Davidson presented some of the challenges currently being faced as well as the questions that still need to be addressed.

“The government commitment is there, but we still need to join the dots across the value chain and make sure that all the players are on board to make it happen. It remains a complex issue, and the devil is in the detail,” she said as she emphasised the need to invest in infrastructure.

Freeport Saldanha joined the consortium to develop a maritime green corridor for the zero-emission shipping of iron ore between South Africa and Europe last year together with Anglo American, Tata Steel, CMB, VUKA Marine, Freeport Saldanha, and ENGIE, convened by the Global Maritime Forum.

Confirming the withdrawal of Tata Steel from the initiative, Davidson noted the need for partnerships such as these to build trust within an environment of inherent risk.

“There is a cost and this price needs to be shared. Cost is going to be the determining factor in a process that has the potential to be successful, but everyone must pay,” she said.

As the only private sector member of the panel and a shipowner, Millard addressed some of the very practical realities that still need to be addressed. “We already have to submit reports on our GHG emissions and create plans for annual improvement,” he said, highlighting the current expectations facing shipowners.

“From a South African perspective, we need to get behind what government puts on the table and need to stay abreast of these changes. But, whatever measures that are introduced cannot be at the expense of economic growth and job creation.”

Millard is concerned about the heavy burden that is being placed on developing countries by the global shift to decarbonisation and believes that there is a need to work with other nations to address this threat.

“Our interests are aligned with other developing countries, and I believe the benefits (of decarbonisation) are not equally accrued across the supply chain,” he said while also suggesting that South Africa has the opportunity to “bat above its weight” as discussions continue within the global maritime arena.

Noting the lack of a clear and defined picture relating to the use of green fuels, Millard says that is difficult to predict exactly which fuel is likely to win as the ultimate choice for decarbonising shipping.

“Scalability is key,” he said, emphasising that any investment in green trade routes and green bunker facilities needs to be built on this premise.

“Rail, ports and ships need to be aligned for this to be a reality,” he said while admitting that this was still a challenge.

PHOTO: Standing (l-r) Vanessa Davidson, Andrew Millard and Mthunzi Madiya. Seated (l-r) Pulane Manale, Amanda Makgoga and Estee Miltz.

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