Low-Carbon Manufacturing

This policy brief, prepared by the Institute for Economic Justice for the Labour Caucus in the Jobs Summit Economic Sector Interventions working group, outlines opportunities and policy requirements for transitioning South Africa's manufacturing sector toward a low-carbon economy. It identifies specific growth areas in renewable energy, transport, agriprocessing, water, and the circular economy, while emphasizing the need for a 'just transition' that protects workers and includes the informal economy.

• South Africa's manufacturing output has decreased by approximately 7% over the last decade. This decline is attributed to several factors, including the cost and inefficiency of utilities such as electricity, ports, and telecommunications, as well as monopolistic pricing in upstream industries and poor coordination between government departments.
• South Africa's exports are highly vulnerable to global shifts toward low-carbon economies because the country has an exceptionally high level of embedded carbon in its exports; approximately 29% of its carbon emissions are exported to other countries, the highest percentage globally.
• The transition to low-carbon manufacturing offers specific job creation opportunities. For instance, the localisation of 27 new projects in the latest round of the Renewable Energy Independent Power Producers Procurement Programme (REI4P) could create 1,500 jobs. Additionally, the introduction of energy cropping for biofuels production in South Africa could create between 50,000 and 100,000 person years of employment.
• Opportunities for low-carbon manufacturing exist across several sectors: renewable energy (solar PV modules, inverters, transformers, and wind towers), transport (electric vehicles and niche electric utility vehicles like orchard tractors), water (desalination and wastewater processing), and the circular economy (eco-blend cements using fly ash and slag).
• To unlock low-carbon manufacturing, the document proposes several policy and financial interventions: finalising infrastructure plans (such as the IRP 2016 and Green Transport strategy), implementing local procurement via the Preferential Procurement Policy Framework Act, and providing preferential finance through the IDC and other development finance institutions.
• A 'just transition' is essential to ensure that the shift to a low-carbon economy does not marginalize vulnerable workers. This includes the explicit incorporation of informal waste workers and waste pickers into formalised waste industries, as well as the reskilling of workers who may lose their jobs due to sector changes.

APA

Naudé, L., & Rivett-Carnac, K. (2018). Low-Carbon Manufacturing. Institute for Economic Justice. https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-2b-Low-Carbon-Manufacturing-Policy.pdf

Chicago

Naudé, Louise, and Kate Rivett-Carnac. Low-Carbon Manufacturing. Institute for Economic Justice, 2018. https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-2b-Low-Carbon-Manufacturing-Policy.pdf.

Wikipedia

{{cite report |last1=Naudé |first1=Louise |last2=Rivett-Carnac |first2=Kate |title=Low-Carbon Manufacturing |publisher=Institute for Economic Justice |date=August 2018 |url=https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-2b-Low-Carbon-Manufacturing-Policy.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{naud2018lowcarbon, author = {Naudé, Louise and Rivett-Carnac, Kate}, title = {{Low-Carbon Manufacturing}}, institution = {Institute for Economic Justice}, year = {2018}, month = aug, url = {https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-2b-Low-Carbon-Manufacturing-Policy.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }