GRACELIN BASKARAN: Commodities windfall must be channelled into climate mitigation

19 October 2021 - 17:08

There are many noble allocation possibilities — including education, health, social grants and infrastructure — yet limited funds. In recent decades, trade sanctions have proliferated as countries seek to drive behavioural changes. In 2001, the US averaged three sanction announcements per month. In 2019, it averaged 13. Though the US has been a key user of sanctions, economists have advocated for using them reciprocally.

Second, some of SA’s key export sectors will forcibly contract due to declining global demand as the world takes on climate mitigation. Let’s look at manufacturing. In 2019, SA exported more automotive vehicles than ever before, accounting for 12% of its total export basket. But SA manufactures international combustion engine vehicles, the ones that burn petrol or diesel rather than the electric vehicles that the world is asking for.

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