South Africa scores relatively poorly on environmental conditions, the Organisation for Co-Operation and Development (OECD) said on Monday as it released its first economic survey of the country.

"South Africa tends to score relatively poorly on broad indices of environmental conditions, especially in the area of greenhouse gas emissions."

This was due to its industrial structure and its heavy reliance on coal for electricity generation.

"The need for progress on tackling climate change has been recognised by the government, but little concrete action has yet been taken to put a price on carbon or stimulate renewables."

Favourable energy prices for some large industrial users, electricity prices that did not cover capital costs for the development of new capacity, and low coal purchase prices for the dominant electricity generator had all tended to hinder economic efficiency and aggravate carbon emissions.

"The urgency of the global problem, South Africa's status as a relatively large emitter, and the slow progress to date all suggest that efforts to mitigate emissions should be accelerated."

The OECD said one important element would be to move to electricity prices that fully covered long-run costs, with no subsidies for industrial customers.

"Other measures could include a carbon tax, greater use of other green taxes, and faster development of renewable energy projects and carbon capture and storage," it said.

The OECD is an international organisation which says it helps governments tackle the economic, social and governance challenges of a global economy.