Camco recently completed a piece of research that concluded that the implications of climate change for the South African economy are significant and are likely to increase as responses to this global challenge intensify.The report, entitled Climate Change: Risks and Opportunities for the South African Economy, has attracted considerable media attention and argues that climate change has moved from an issue of environmental concern to one of commercial significance, with the potential impacts on South Africa, both positive and negative, now far-ranging in scope. The research’s emphasis is placed not on direct physical impacts, such as increased temperatures and reduced water availability, but on the ‘secondary’ impacts of climate change. These secondary impacts relate to national, regional and global responses to climate change, and how this range of responses influences trade, investment and economic growth.For South Africa these potential impacts include shifts in retailer and consumer preferences to low carbon alternatives, concerns related to how evolving carbon regulation in South Africa and the European Union might affect industry, through to market opportunities in clean energy technologies, and how the economy as a whole should respond to these challenges. Positioned globally, South Africa’s economy is currently poorly placed to address a number of these concerns, given our strong dependence on fossil fuels and high levels of energy intensity per economic output. South Africa’s climate competitiveness, although improving, remains amongst the lowest of the G20 group of nations.The research argues that proactive engagement and management of climate change by business and industry is desirable. Action is also required over and above concerns related to the introduction of climate change regulation at a national level. For many sectors of the economy, significant threats and opportunities to business lie outside the realm of national regulatory mechanisms, in the form of global supply chains, investor relations, reputational issues and the growing demand for low carbon goods and services. At the same time, a number of climate liabilities have the ability to be reoriented into commercial opportunities to enhance competitiveness, access external support and deliver new products and services. As Camco’s research demonstrates, many pro-climate initiatives are of significant value in supporting job creation, poverty alleviation, energy security and economic growth in the Agriculture, Manufacturing, Electricity, Construction and Services sectors. The findings of Camco’s research were recently outlined at a stakeholder seminar in May 2010 entitled, ‘Towards Low Carbon Growth in South Africa’, and included a panel discussion with senior representatives from the National Planning Commission, Eskom, Presidency, Development Bank of Southern Africa (DBSA), Environmental Goods and Services Forum, Standard Bank and National Business Initiative (NBI). Amongst other aspects, the Seminar sought to consider how best to operationalise the opportunities presented by a low carbon economy for South Africa. Click on this link to download the full report at the project website.Click on this link for further details on the project.