South Africa’s current industrial policy aims to diversify the nation’s technological and industrial base beyond traditional dependence on mining, mineral processing and agriculture, by improving competitiveness and output in upstream engineering and ‘nearby’ industries such as transport machinery and food processing.

This paper sets out the case for enhancing South Africa’s industrial and broader economic policies by responding to the threats and opportunities associated with climate change. Tomorrow’s low carbon economics offer major opportunities for South Africa. But equally, climate change and low carbon competition poses economic and broader social threats to the country.