Kay Walsh of Deloitte has written an article listing 10 compelling reasons why South African companies must pay attention to Green Growth. Sustainability and climate change is at the top of the agenda for most companies and must be taken very seriously. Here is the sixth reason why companies need to pay attention to “Green Growth”.
High carbon content products may be banned by developed countries
South African exports could potentially be banned by developed countries if they are high in carbon content (carbon intensity in production). This will be driven by environmental concerns, but also by the intent of protecting and stimulating local economies. Trade partners may start using carbon-content as a form of non-tariff barrier or border tax adjustment policy.
Cross-border adjustments will put pressure on developing countries to follow suit in terms of reducing carbon emissions, but also enable developed countries to protect their local industry.
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