South Africa's Green Transition: Unlocking the Potential of Green Hydrogen and Job Creation
Key Ideas
  • The paper highlights South Africa's opportunity to competitively produce green hydrogen using renewable energy sources like solar irradiation and wind, enabling a shift from coal dependence in sectors like chemicals, steel, and cement.
  • The global demand for green hydrogen is driving significant investments, fostering linkages with South Africa's platinum group metal production and creating new employment opportunities.
  • The green transition in Africa, including South Africa, presents prospects for addressing challenges like energy system development, productive transformation, and job creation through leveraging upstream and downstream industry linkages.
  • The paper emphasizes the importance of considering indirect job creation through connections between upstream and downstream businesses in sectors like critical minerals processing and precursor production.
A new paper published by the Centre for Sustainable Structural Transformation and SOAS University of London sheds light on South Africa's emergence as a hub for green opportunities. The paper underscores the country's potential to establish a lithium-ion battery value chain for sustainable mobility and transition towards a green economy. By harnessing renewable energy sources like solar and wind, South Africa and countries like Namibia can competitively produce green hydrogen, facilitating the decarbonization of sectors currently reliant on coal, such as chemicals, steel, and cement. The report emphasizes the global demand for green hydrogen, driving investments worth billions and creating opportunities for linkages with South Africa's leading platinum group metal production. This integration of energy, minerals, and industrial sectors not only fosters employment but also facilitates the diffusion of green technologies. The green transition in Africa is seen as a vehicle for addressing challenges related to productive transformation, energy system development, and job creation. Moreover, the paper highlights the significance of considering indirect job creation through connections between different industries. By exploring opportunities in critical minerals processing and precursor production, countries like South Africa, Morocco, and the DRC can unlock new employment prospects. The report urges a broader perspective on 'green jobs' beyond direct roles in the renewable sector to include upstream and downstream businesses in the value chain. In conclusion, the paper advocates for maximizing the potential of green hydrogen and leveraging industry linkages to create a sustainable and thriving green economy in South Africa and across the African continent. It calls for strategic programs and collaborations to drive green growth and ensure a just transition towards a more environmentally friendly and economically prosperous future.
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