Beyond Fossil Fuels: Fiscal Transition in BRICS

The document analyzes South Africa's heavy reliance on coal, which provided 89% of its electricity in 2017. It details the fiscal impact of this dependence, noting that while fossil fuel production revenues are modest, consumption taxes—primarily the fuel levy—contribute significantly to government revenue. The report also highlights the role of state-owned enterprises like Eskom and PetroSA, the risks of asset stranding, and the government's commitment to a 'just transition' and carbon taxation despite political flux in energy policy.

• South Africa is heavily dependent on coal for its energy supply, with coal providing 76 per cent of the total energy supply and 89 per cent of the country's electricity in 2017.
• The South African government derives a significant portion of its general government revenue from fossil fuel consumption taxes, totaling 6.4 per cent in 2017, with the fuel levy being the largest contributor at 5.5 per cent.
• Revenues from the production of fossil fuels are relatively low, accounting for only 0.4 per cent of general government revenue in 2017, consisting of royalties and corporate income tax.
• The state maintains significant ownership in the energy sector through wholly government-owned entities Eskom and PetroSA, and a 22 per cent stake in Sasol, exposing the government to asset stranding risks.
• South Africa provides substantial fossil fuel subsidies, with OECD estimates of budgetary transfers and tax breaks at 2.4 per cent of general government revenue, and IEA estimates of regulated price subsidies at 5.3 per cent, largely driven by free basic electricity access.
• The government's Nationally Determined Contribution (NDC) includes plans to decarbonize the electricity sector by 2050 at an estimated cost of USD 349 billion and explicitly mentions the need for a 'just transition' for workers.

APA

Bridle, R., & Geddes, A. (2019). Beyond Fossil Fuels: Fiscal Transition in BRICS. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/beyond-fossil-fuels-south-africa.pdf

Chicago

Bridle, Richard, and Anna Geddes. Beyond Fossil Fuels: Fiscal Transition in BRICS. International Institute for Sustainable Development, 2019. https://www.iisd.org/system/files/publications/beyond-fossil-fuels-south-africa.pdf.

Wikipedia

{{cite report |last1=Bridle |first1=Richard |last2=Geddes |first2=Anna |title=Beyond Fossil Fuels: Fiscal Transition in BRICS |publisher=International Institute for Sustainable Development |date=November 2019 |url=https://www.iisd.org/system/files/publications/beyond-fossil-fuels-south-africa.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bridle2019beyond, author = {Bridle, Richard and Geddes, Anna}, title = {{Beyond Fossil Fuels: Fiscal Transition in BRICS}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = nov, url = {https://www.iisd.org/system/files/publications/beyond-fossil-fuels-south-africa.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }