Global Consensus Needed to Harness Green Economy for Shared Prosperity, Says Deputy Minister Whitfield

The briefing session, held ahead of the first virtual meeting of the G20 Trade and Investment Working Group, provided insights into South Africa’s policy priorities within the global forum.

In a bid to ensure that the emerging opportunities within the green economy translate into shared prosperity, South Africa's Trade, Industry, and Competition Deputy Minister, Andrew Whitfield, has underscored the urgent need for global consensus on sustainable and inclusive economic growth. Speaking during a joint session of the Portfolio and Select Committees on Trade and Industry, Whitfield emphasized the pivotal role of South Africa’s G20 Presidency in fostering dialogue on international trade and climate-conscious industrialisation.

The briefing session, held ahead of the first virtual meeting of the G20 Trade and Investment Working Group, provided insights into South Africa’s policy priorities within the global forum. The working group, scheduled to convene multiple times throughout the year before the main ministerial meeting in October, will address four key themes: trade and inclusive growth, a responsive trade agenda for global commons, green industrialisation, and reforms within the World Trade Organization (WTO).

Addressing Global Challenges Through Trade Policy

Deputy Minister Whitfield stressed that the G20, as a platform for the world’s largest economies, holds a unique responsibility in formulating collaborative responses to the pressing environmental, social, and economic challenges that threaten global stability and sustainable development. He warned that without multilateral cooperation, the world risks a fragmented trade environment, which could hinder collective efforts in tackling climate change and economic disparities.

“A particularly worrisome prospect is the lack of multilateral solutions and cooperative approaches, alongside the increasing tendency towards punitive measures to address global environmental concerns,” Whitfield stated. “If not managed carefully, these approaches may exacerbate trade fragmentation, impeding the transition to a cleaner global economy.”

He stressed that trade and climate policies must be aligned to complement one another while adhering to WTO principles to ensure sustainable development. This, he noted, would require fostering policies that bolster inclusive economic participation and encourage environmentally responsible industrialisation.

The Need for Investment in Value-Added Production

A core aspect of South Africa’s advocacy at the G20 revolves around promoting beneficiation and local value addition to natural resources, rather than perpetuating the extractive economic models that have historically left resource-rich countries with little long-term economic benefit.

“There is a need to shift from ‘pit to port’ economic activities that focus solely on raw material extraction towards value-added production that strengthens local industries and boosts job creation,” Whitfield explained. “Beneficiation at the source ensures that nations endowed with resources benefit directly from their natural wealth, instead of merely serving as suppliers to industrialised economies.”

He further emphasized that investments in developing economies should contribute to structural transformation, ensuring that countries move up the value chain while also maintaining the integrity of global and regional trade networks.

Reforming Global Trade Institutions

The Deputy Minister also highlighted the need to reform multilateral institutions such as the WTO to make them more responsive to the economic needs of developing nations. With increasing concerns about global trade imbalances, he called for a reinvigoration of international economic cooperation to address systemic inequalities that persist in global markets.

“By strengthening and reforming multilateral mechanisms and institutions, and by deepening international economic cooperation, we can work towards a more equitable world free from the dual burdens of inequality and underdevelopment,” Whitfield asserted.

His remarks come at a time when international trade policies are being scrutinized for their impact on both climate objectives and economic disparities. As the world transitions to cleaner energy sources, debates continue on how to balance sustainability goals with fair economic opportunities for all countries, particularly those in the Global South.

South Africa’s Role in the Green Industrial Revolution

As part of its G20 Presidency, South Africa is advocating for policies that facilitate green industrialisation—an approach that integrates environmental sustainability with economic growth strategies. This includes fostering investments in renewable energy, incentivizing sustainable production, and creating trade policies that support carbon-neutral industrialisation.

Whitfield reaffirmed South Africa’s commitment to leading discussions on how trade policies can be leveraged to advance climate-friendly industrial development without disproportionately disadvantaging emerging economies.

“The transition to a greener economy should not widen existing economic inequalities. Rather, it should create pathways for inclusive development, ensuring that all nations, regardless of their current industrial capabilities, have access to the necessary resources and technologies,” he noted.

As the G20 deliberates on trade and sustainability issues in the coming months, South Africa’s leadership will be critical in shaping policies that encourage cooperative global action while safeguarding the interests of developing economies. The upcoming ministerial meeting in October will serve as a significant milestone in determining the direction of trade reforms and green industrial policies that could shape the global economy for years to come.