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Why South Africa’s Green Transition Is A Double Whammy?

Feature Article Why South Africa’s Green Transition Is A Double Whammy?
THU, 16 MAY 2024 LISTEN

South Africa’s electricity minister, Sputla Kgosientso, recently announced that Eskom had achieved a 70.8% Energy Availability Factor (EAF) since 2021. However, there is widespread scepticism regarding this sudden improvement, with some analysts and critics interpreting it as an electioneering tactic by the ruling ANC. This cynicism arises because it is well-known that South Africa is a signatory to the 2015 Paris Climate Change Agreement, which not only sets targets for a low-carbon world but also aims to annihilate coal and other fossil fuels.

What is not usually mentioned in the aggressive push for a ‘green revolution’ is that countries like South Africa face a double whammy. They experience load-shedding as they are pressured to abandon coal in favour of renewables while simultaneously bearing the heavy responsibility of supplying critical minerals, also known as energy transition minerals and metals (ETMs), to achieve the widely acclaimed yet elusive just energy transition. Though not immediately apparent, the killing of miners in Marikana in 2012 and the rampant power outages are two sides of the same coin.

Therefore, his op-ed aims to shed light on the issues faced by communities in South Africa’s platinum belt and Kalahari region, which are heavily impacted by mineral extraction. It critiques the international principle of ‘common but differentiated responsibilities’ for failing to protect mineral-rich countries like South Africa in the global push for green energy. The op-ed argues that the high demand for ETMs leads to excessive mining and contributes to human rights abuses and environmental damage in these regions.

  • Energy transition and ETMs

Aeysha Samsodien argues that mining critical minerals is a key component of a just energy transition. Current forecasts suggest that commodities are needed in the four energy transition pillars: transmission and distribution, electric vehicles, renewables and energy storage. However, “there is no single or standardised set of estimates on the volume of mineral resources needed to support global changes in energy technology and infrastructure”.

Among others, the International Monetary Fund (IMF) working paper explains the uncertainty in mineral resource estimates by pointing to the unpredictable nature of technological advancements, which could enable the substitution of certain metals. Additionally, the pace and direction of the energy transition depend on policy decisions, which are equally difficult to anticipate. In its 2021 World Energy Outlook Special Report, the International Energy Agency (IEA) further emphasises these uncertainties, stating that the most significant factor influencing demand variability is the uncertainty surrounding the stringency of future climate policies.

The energy transition is predicted to significantly increase demand for at least thirty ETMs, with lithium, graphite, cobalt, and nickel experiencing the fastest growth. Other essential metals like copper and iron will also see a surge in demand due to their extensive use in power generation and transportation. Electric vehicles and hydrogen technology further drive the demand for various ETMs, including platinum-group metals.

  • Green Revolution Threatens Environment and Rights of People

While the JET is often lauded as a solution to the global climate crisis, evidence points to a darker side within the green industry’s supply chain. According to the Amsterdam-based Centre for Research on Multinational Corporations (SOMO), the growing demand in Europe for manganese needed for the energy transition and steel production can be directly linked to human rights abuses by manganese mining companies in South Africa.

The International Institute for Sustainable Development (IISD) refers to ETMs as “green conflict minerals” and argues that they are “the fuels of conflict in the transition to a low-carbon economy.” This is particularly evident in countries grappling with political instability and weak governance within the mining sector, where the extraction of these minerals can be directly linked to violence, conflict, and human rights abuses.

South Africa is among many countries that have committed to transitioning towards more sustainable energy sources to mitigate the climate crisis and limit global warming (Owen et al., 2023). This crisis is the result of a significant historical imbalance between industrialisation and the environment. This shift in focus towards sustainability in the Global North is exerting significant pressure on resource-rich countries in the Global South.

Steel production is resource-intensive and a major source of emissions, yet it is also crucial for creating the infrastructure essential for transitioning to a more sustainable global economy. Renewable energy sources like wind, solar and hydroelectric power heavily rely on steel for their construction.

Manganese mined under conditions detrimental to human rights and the environment is distributed globally, primarily for use in steel production. One-third of all European manganese imports originate directly from South Africa, with a larger share entering the EU after refinement in China and Norway. For example, the Netherlands in 2019 imported sixty-two kilotonnes of manganese ore, seventy per cent of which came directly from South Africa.

The Netherlands ranks as the world’s fourth-largest importer of ferromanganese, a crucial alloy for steel production. Given that steel production accounts for ninety per cent of global manganese demand, the increased demand for manganese in Europe, driven by the energy transition and steel production, is directly linked to the adverse human rights impacts.

Renewable energy sources like wind turbines, batteries for electric vehicles and energy storage are driving up the demand for crucial minerals in low- and middle-income countries such as Zambia, the Democratic Republic of the Congo and South Africa. However, SOMO research reveals that mining in these areas poses serious threats to the environment and human rights, with women and girls being disproportionately affected.

Manganese and platinum, which are among the top thirty key minerals essential for the energy transition, are mainly mined in South Africa, pointing to adverse social and environmental impacts. This is particularly the case in these minerals’ supply chains from South Africa and their utilisation of renewable energy technologies as part of the global climate agenda.

  • Greening Pushes Communities into a Deep Abyss, Promotes Global Interests

Empirical evidence suggests that local communities, especially women in the Kalahari region (home to the world’s largest manganese resources), are often excluded from mining companies’ decision-making processes that directly affect them. Despite the courts’ decisions in the Baleni and Maledu cases recognising the right of local communities to free, prior and informed consent (FPIC) regarding mining activities that impact them, this right is often disregarded.

Furthermore, communities near mines face health risks such as asbestosis and respiratory diseases and suffer from the scarcity and pollution of water sources, violating their right to a healthy environment and contravening the existing, voluntary international business and human rights instruments, including the United Nations Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for multinational enterprises.

While diligence laws in Europe, such as the Modern Slavery Act (UK) and the EU’s Corporate Sustainability Due Diligence Directive (CS3D), purport to address these issues, they lack universal support due to criticisms of their ‘neo-colonial’ nature. This is evidenced by the backlash against deforestation legislation from numerous producer countries, which claimed it was “inherently discriminatory.” Caroline Lichuma complains that diligence laws are about “centering Europe and othering the rest.”

Additionally, the absence of a binding treaty to hold companies accountable for human rights abuses exacerbates a legal gap in the international system, allowing powerful states and corporations to exploit ETMs without sufficient restraint. As a result, Busani Ngcaweni proposes a governance mechanism mirroring the Kimberley Process (KP) for critical minerals accreditation. In a world system already laden with a ‘galaxy of norms’, unequal power relations and fierce capitalism, it remains to be seen if this touted KP for critical minerals will ever be considered.

The killing of miners in Marikana in 2012 and the widespread load-shedding are interconnected consequences of this paradox. The pressure to provide resources for the global green transition is putting a strain on South Africa, leading to labour unrest and instability in the energy grid. The Marikana killings drew the line on the sand to send a stern message to the historically oppressed black workers not to exercise their labour rights, threatening the ‘green revolution’. Ever since then, workers have not put up a fight to challenge anything.

Climate negotiations are to consider the fact that mineral-rich countries suffer from both the negative impacts of transitioning away from their traditional energy sources and the burden of meeting the increasing global demand for minerals. In the context of climate change, the principle of ‘common but differentiated responsibilities’ is a cornerstone of international environmental law. This principle acknowledges that all countries are responsible for addressing global environmental issues, but their responsibilities differ based on their historical contributions to the problem and current capacities.

Hopefully, future climate negotiations will go beyond the current contrasts to determine how the likes of South Africa can be compensated for all the pain they endure in the de-carbonisation of the earth. This new agenda must target governments in ETM-rich countries, governments in countries experiencing increased demand for manganese due to a transition to low-carbon technologies, mining companies, manufacturers of low-carbon technologies containing ETMs, end users of these technologies and financial institutions with ties to ETM mining or usage.

South Africa’s green transition is not just an energy or technological challenge but also a social, economic and environmental one. Global players cannot continue to ignore the double whammy burdening mineral-rich countries in the name of a green revolution. A truly just transition that prioritises the rights and well-being of those most impacted is needed, ensuring that the quest for a sustainable future does not perpetuate injustice.

Siya yi banga le economy!

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