Trade, Industry and Competition Minister Ebrahim Patel has announced the introduction of a temporary reduction on import duties for batteries in electric vehicles (EVs) produced and sold in the domestic market.
This move is aimed at improving the cost competitiveness of EVs in South Africa.
“We are looking at reducing the current petrol-driven incentives to electrical vehicles and provide additional support in the form of tax or fiscal measures as well as the use of what is called the JEIP funding – these are the resources with partners as part of South Africa’s transition,” Patel said.
He added that the reduction in import duties for batteries will be subject to careful consultation to ensure that local producers are not undermined.
The announcement comes as South Africa seeks to accelerate its transition to a low-carbon economy.
Minister Patel unveils Green Hydrogen and Electric Vehicle strategies in South Africa:
Climate Justice Coalition Calls for Questions About Just Energy Transition Implementation
The Climate Justice Coalition (CJC) has called for questions to be asked about the implementation of South Africa’s Just Energy Transition (JET).
This follows a call by President Cyril Ramaphosa at COP 28 climate talks underway in Dubai for adequate financial support to ensure effective JET implementation.
Ramaphosa has been calling for developed economies to live up to their promises during the previous climate change talks in Paris.
CJC General Secretary Alex Lenferna said: “I think it’s a very interesting proposal that has been put forward, and you know it’s a massive 300-page document. So, there are lots of different details that we can get into. But I think there are some big questions that we should be asking about this implementation plan and one is how fast it is going to go because there’s been a lot of noise from the ANC about slowing down the decommissioning of coal plants. There’s a big question about whether that will be in line with South Africa’s fair share of climate action and there’s also questions about how the finance will flow.”
COP28 | Global warming denialism: