Written by: Yunus Kemp
The South African automotive industry needs to move towards the manufacturing of electric vehicles (EVs) to maintain export market access.
Such a transition would also assist in decarbonising the South African transport industry.
This key insight is part of GreenCape’s 2023 Electric Vehicles Market Intelligence Report (MIR).
The report focuses on five categories: EVs, water, sustainable agriculture, energy services and large-scale renewable energy services.
Have you read?
South Africa: Promising green economy investment opportunities
Electric vehicles to reduce South Africa’s Greenhouse Gas emissions
The Electric Vehicles MIR points out that South Africa’s largest automotive export market is the European Union, which has banned the sale of new Internal Combustion Engines (ICE) vehicles by 2035.
“In addition, the European Green New Deal aims to ensure that the Eurozone is carbon neutral by 2050, which is expected to place further restrictions on automotive exports due to the carbon footprint associated with manufacturing in South Africa and transportation to the European market.”
Therefore there is a need for the South African automotive industry to “transition towards the manufacturing of EVs to maintain export market access and to assist with the decarbonisation of the South African transport industry.”
“This manufacturing transition would need to be accompanied by the use of renewable energy for manufacturing and logistics to meet the carbon neutral requirements of the European Green New Deal by 2050.”
The report notes that South Africa is a signatory to the Paris Agreement and has announced its ambition to limit greenhouse gas (GHG) emissions to 398-510 metric tonnes of carbon dioxide equivalent (MtCO2eq) by 2025, and to 350- 420 MtCO2e by 2030 (DFFE, 2021).
“The South African Green Transport Strategy (2018) estimates that the transport sector contributes 10.8% of the country’s total GHG emissions. According to the Climate Transparency Report (2021) South Africa’s transport sector contributed to 12% of South Africa’s GHG emissions from fuel combustion.
“South Africa aims to reduce transportation related GHG emissions by 5% by 2050 (South African Green Transport Strategy, 2018).”
Have you read?
Global electric vehicle sales close to one in five sold
South Africa must manufacture electric vehicles for market access
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Written by: Yunus Kemp
The South African automotive industry needs to move towards the manufacturing of electric vehicles (EVs) to maintain export market access.
Such a transition would also assist in decarbonising the South African transport industry.
This key insight is part of GreenCape’s 2023 Electric Vehicles Market Intelligence Report (MIR).
The report focuses on five categories: EVs, water, sustainable agriculture, energy services and large-scale renewable energy services.
Have you read?
South Africa: Promising green economy investment opportunities
Electric vehicles to reduce South Africa’s Greenhouse Gas emissions
The Electric Vehicles MIR points out that South Africa’s largest automotive export market is the European Union, which has banned the sale of new Internal Combustion Engines (ICE) vehicles by 2035.
“In addition, the European Green New Deal aims to ensure that the Eurozone is carbon neutral by 2050, which is expected to place further restrictions on automotive exports due to the carbon footprint associated with manufacturing in South Africa and transportation to the European market.”
Therefore there is a need for the South African automotive industry to “transition towards the manufacturing of EVs to maintain export market access and to assist with the decarbonisation of the South African transport industry.”
“This manufacturing transition would need to be accompanied by the use of renewable energy for manufacturing and logistics to meet the carbon neutral requirements of the European Green New Deal by 2050.”
The report notes that South Africa is a signatory to the Paris Agreement and has announced its ambition to limit greenhouse gas (GHG) emissions to 398-510 metric tonnes of carbon dioxide equivalent (MtCO2eq) by 2025, and to 350- 420 MtCO2e by 2030 (DFFE, 2021).
“The South African Green Transport Strategy (2018) estimates that the transport sector contributes 10.8% of the country’s total GHG emissions. According to the Climate Transparency Report (2021) South Africa’s transport sector contributed to 12% of South Africa’s GHG emissions from fuel combustion.
“South Africa aims to reduce transportation related GHG emissions by 5% by 2050 (South African Green Transport Strategy, 2018).”
Have you read?
Global electric vehicle sales close to one in five sold
Investment opportunities in SA EV market
Since GreenCape’s 2022 Electric Vehicles MIR, there have been several important developments in the sector.
The EV policy includes:
GreenCape’s Market Intelligence Reports are published in partnership with the UK’s Partnering for Accelerated Climate Transitions (PACT) programme, the Friedrich Naumann Foundation for Freedom and the Western Cape Government Department of Agriculture.
Non-profit GreenCape’s 2023 Market Intelligence Reports are available online. ESI
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