Page 41 - Energize January 2022

VIEWS AND OPINION

element in low-cost green hydrogen
production will be the availability of
sufficient high-quality renewable energy
resources.
“Many African countries, including
South Africa, are endowed with vast
renewable energy resources of their
own and could produce green hydrogen
at globally competitive prices,” says
Kesh Mudaly, project leader at BCG
Johannesburg and a co-author of the
report. For example, South Africa could
generate green hydrogen at a levelised
cost of roughly $1.60 per kilogram by
2030, making it competitive with the
corresponding 2030 levelised costs in
Australia and in Saudi Arabia.
Unlocking South Africa’s vision of
a just transition against this backdrop,
at national and sectoral levels, hinges
on key building blocks: job creation; Figure 2
social and ecological welfare; managing
geographic and cultural dislocation of leveraging new technologies and business models, African countries can chart their own
communities; education, capacitation low-carbon development paths optimised to local contexts.
and reskilling; economic inclusion and • Accelerate the creation of local green manufacturing capabilities. African countries need
participation, especially of the youth to harness their natural resources and local capabilities to drive the creation of localised
and black women; ownership; quality green manufacturing hubs in renewable energy, carbon sequestration, climate-resilient
of work; infrastructure planning and food systems, and other areas. Doing so can create millions of jobs and spearhead
rollout; policy and governance; and Africa’s industrial development.
funding.
Ultimately, achieving a just “The road to COP27, which will take place in Africa, needs to bring global and African
transition requires a conversation that leaders together to meet the financial, technological, and capacity-building challenges
includes all stakeholders – followed by a that will not only shape Africa’s future but also significantly affect the global path to net
commitment to taking collective action. zero. African leaders should create sound, national climate resilience plans that identify
effective responses to their countries’ specific challenges and opportunities, and richer
Making progress toward net zero nations should be prepared to invest in activating those plans. Developed countries that
South Africa and the rest of the have historically contributed the most to global emissions must help unlock the required
continent have the chance to create investments from both the private and public sectors,” concludes Patrick Dupoux, a BCG
resilience for their economies and managing director and senior partner, and a co-author of the report.
societies, and to advance their
industrial development. To avoid About Boston Consulting Group
disastrous consequences and seize Boston Consulting Group partners with leaders in business and society to tackle their
promising opportunities, South Africa, most important challenges and capture their greatest opportunities. BCG was the pioneer
African countries and the international in business strategy when it was founded in 1963. Today, we work closely with clients to
community should prioritise three embrace a transformational approach aimed at benefiting all stakeholders—empowering
actions: organizations to grow, build sustainable competitive advantage, and drive positive societal
• Invest massively in climate impact.
adaptation. African countries must Our diverse, global teams bring deep industry and functional expertise and a range
mobilise massive funds to build of perspectives that question the status quo and spark change. BCG delivers solutions
climate resilience. Collaboration through leading-edge management consulting, technology and design and corporate
with and financial support from the and digital ventures. We work in a uniquely collaborative model across the firm and
international community will be throughout all levels of the client organization, fueled by the goal of helping our clients
critical to achieving this. thrive and enabling them to make the world a better place.
• Build the foundation for low-carbon,
socioeconomic development. By Contact BCG, https://www.bcg.com/en-za/

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