Globally, we find ourselves at the threshold of irreversible climate change. Global warming – once a distant theory – has been an immediate and growing threat for some time, driven largely by greenhouse gas emissions as a result of energy consumption and industrial activities.
Measuring our carbon intensity is a critical way of assessing our environmental impact both in South Africa and globally.
In 2023, a concerning trend emerged – the global decarbonisation rate was only 1.02%, falling short of the annual average decrease of 1.43% achieved between 2000 and 2023 and far short of the required decarbonisation rate of 20% per year required to keep global warming within 1,5°C by the end of the century. This is the latest data from PwC’s newly launched Net Zero Economy Index 2024 report.
Lullu Krugel, PwC Africa sustainability platform leader, says: “A significant driver behind this increase is the rise in energy use, driven by factors such as the energy intensive AI industry and heightened demand for heating and cooling to combat extreme temperatures, amongst other factors.”
Locally, we saw an increase in our carbon intensity by just under 3% and an increase in our fuel factor by just under 4% from 2022 to 2023.
“This indicates that our efforts to reduce emissions still have some way to go,” Krugel says. “While this is contrary to expectations, given the levels of load shedding and record numbers of solar PV installed in 2023, it is important to recognise that beyond electricity generation the fuel factor figures we looked at include the energy used to drive our cars and trucks, diesel to keep generators on during load shedding, as well as wood, coal and paraffin for heating and cooking in homes.”
Despite this, there is good news. South Africa is still below pre-Covid levels in terms of carbon intensity and fuel factor.
“This small silver lining shouldn’t make us complacent, as South Africa remains the largest polluter on the African continent and is one of the countries most at risk to the impacts of a changing climate,” says Matt Muller, PwC South Africa climate and nature specialist.
“We are a resilient nation, but we are not yet climate resilient,” he adds. The effects of climate change are increasing the cost of living, threatening food and water security, and affecting livelihoods. The flooding event in KwaZulu-Natal in 2022 exemplifies the severe impact that a changing climate can have on our society and its most vulnerable members.
We need to intensify our existing strategies to decarbonise our economy—and here, we all have a role to play. Nature-smart solutions that are economically inclusive, protect livelihoods, drive better business decisions and align with our need to decarbonise is one option to achieving this. While climate-related risks are a key driver resulting in us taking action, the size of these opportunities should also motivate us.
“A big driver behind various opportunities is the need for new technical solutions, which brings with it the need for new skills,” says Dr Dayalan Govender, PwC Africa people and organisation leader. A World Economic Forum Future of Jobs Report found that the supply of skills in this area is not keeping up with the required demand which has risen by 40% since 2015.
“In a country like South Africa, which has a record high unemployment rate of 33.5%, and is facing the threat of increased climate related impact, a two-pronged solution of developing the skills needed to build climate resilience within the country could unlock a new economy of jobs while building increased resilience to future climate shocks,” Krugel says.
We need to adapt faster as a collective and find a way to win within these changing and challenging conditions. As a global society, we made formidable achievements in 2020 in our collective response to the Covid-19 crisis. With climate change now a pressing and crippling reality, we should be employing the same vitality in addressing this crisis as there isn’t another option, and we cannot afford to wait.