To make South Africa competitive in a future where the carbon footprint of a product would be a determinant for trade, the South African government would need to reassess the previously successful energy intensive strategy, which was based on cheap electricity from coal and high emissions.

Addressing participants gathered at a climate change workshop in Johannesburg, independent climate change consultant Dave Collins emphasised that for companies to thrive in a low-carbon economy they should question whether or not their long-term strategies took into account the full effects of climate change and the end of cheap energy, as well as the potential cost of emissions.

Likewise, Collins noted that government must recognise that business needs certainty, and could even respond well to carefully planned constraints.

He added that the government must be clear and transparent on policy, and should use the many willing helpers that had emerged in industry.

South Africa's Department of Environmental Affairs has previously indicated that it plans to have the country's draft national climate change policy released for public comment by the middle of the year, with the final completed by the end of 2010.

Business Unity South Africa met with Minister of Water and Environmental Affairs Buyelwa Sonjica on Friday to clarify the government's greenhouse gas reduction undertaking made to the United Nations Framework Convention on Climate Change (UNFCCC) in January.

Recently, representatives from Sasol and Eskom had expressed surprise at government's announcement of an emissions reduction target at the Copenhagen climate change conference in December. Prior to the conference, government had indicated that it would not take on targets that would negatively affect the country's development trajectory.

Many stakeholders felt that the country's specified target - deviation below the current emissions baseline of around 34% by 2020 and by around 42% by 2025 - was very ambitious. However, it was also stated that the target was out of synch with plans of other departments, such as the Department of Energy's Integrated Resources Plan, which commits the country to more coal-fired power stations.

Collins said that government should drive the required changes by taxing carbon and returning those revenues to taxpayers so that they could adjust their behaviour - for example through solar water heater rebates.

He also noted that government should support renewable energy development, exploit the opportunities for business and jobs in the coming low-carbon economy and drive energy efficiency.

Business also had a responsibility to reduce its energy consumption and emissions footprint, and Collins urged companies to disclose their climate change plans and actions.