for Sustainable

Development

GREEN ECONOMY

National Green Jobs Dialogue

PRESENTED BY: TLOU RAMARU, CHIEF POLICY ADVISOR: SUSTAINABLE DEVELOPMENT

9 April 2014, DBSA

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Development

PRESENTATION OUTLINE • International Trends on Green Economy

• National Policy landscape

• Key targets

• Funding Mechanism

• Environmental Performance Review

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THE INTERNATIONAL TRENDS • Rio+20 has initiated a shift of focus; Green economy

is increasingly seen as a gateway to new opportunities for trade, growth and sustainable development.

• The South Korea based Global Green Growth Institute (GGGI), founded in 2010, 2012-became intergovernmental - pioneering and diffusing a new economic model of economic growth addressing the resource-intensive and environmentally unsustainable model of industrial development.

• The Organization for Economic Cooperation and Development (OECD) has developed a Green Growth Strategy and is now mainstreaming green growth in its national and multilateral policy surveillance exercises to provide policy advice that is targeted to the needs of individual countries

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THE INTERNATIONAL TRENDS

• UNEP continues to expand their Green Economy Initiative particularly through their advisory services, which provide policy advice, technical assistance and capacity building to governments in support of national and regional initiatives.

• The United Nations Industrial Development Organisation (UNIDO) is developing an extensive programme on Green Industry , a two pronged strategy to decouple resource use and pollution from industrial development and promote sustainable productive sectors and entrepreneurship in developing and transitioning countries.

• The International Labour Organisation (ILO) has a Green Jobs programme, whose latest report suggests that 60 million jobs could be created by the transition .

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THE INTERNATIONAL TRENDS

• China earmarked an estimated $140 billion of its $586 billion US dollar fiscal stimulus package for green investments.

• The EU 2020 strategy for ‘smart, green and inclusive growth aims at economic renewal to create jobs, encourage ‘green economic growth and create an inclusive society’

• Green growth plans and strategies are also under development in Indonesia, Brazil and Mexico as part of their work with the GGGI and UNEP.

• The ‘green growth’ and ‘green economy’ agendas are changing quickly. Even some mainstream economists and finance industries are beginning to see green growth as a way out of economic stagnation and low growth rates.

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The National Policy Environment

National Development Plan:Twenty year Plan – Vision 2030 -Objectives and actions √ Economy and employment √ Economic infrastructure

√ Environmental sustainability and resilience √ An integrated and inclusive rural economy √ Positioning South Africa in the region and the world √ Transforming human settlement √ Improving education, training and innovation √ Promoting health care for all √ Social protection √ Building safer communities √ Building a capable and developmental state √ Fighting corruption

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The National Policy Environment

New Growth Path: Economic Job Drivers √ Infrastructure √ Agricultural value chain √ Mining value chain

√ Green economy – (strategically transform economic development for long term SD & decent work)

√ Manufacturing sectors in Industrial Policy Action Plan - (develop green industries & improve energy efficiencies). √ Tourism and certain high-level services

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The National Policy Environment

National Strategy for Sustainable Development: 5yr Priorities √ Enhancing Systems for Integrated Planning and Implementation √ Sustaining Our Ecosystems and Using Natural Resources Efficiently √ Towards a Green Economy √ Building Sustainable Communities √ Responding Effectively to Climate Change

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The Policy Environment Green Economy Accord – 12 Commitments to mobilize the Private Sector, organized labour, communities and government in a partnership to promote the Green Economy (Opportunity, innovation, responsibility & partnerships). 1. Rollout of SWH 2. Investment in the Green Economy 3. Energy efficiency 4. Rollout of Renewable Energy 5. Waste recycling, re-use, recovery 6. Biofuels 7. Clean Coal initiative 8. Retrofitting 9. Reducing carbon emission on our roads 10. Electrification of Poor Communities 11. Economic development: localization, youth employment, cooperatives, skills 12. UNFCCC COP 17 cooperation.

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The National Policy Environment Other Supporting Policies/Interventions:

• National Climate Change Response White Paper -Immediate

implementation of Near-term Priority Flagship Programmes • Integrated Resource Plan – Focus on the renewable • National Skills Development Strategy • Key Reports: Green Jobs Report – Industrial Development Corporation • National Fiscal Instruments: Innovation Fund, Green Fund • Demonstration Projects: – 2010 FIFA World Cup, UNFCCC COP 17.

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The National Policy Environment

•Greening private* and public buildings Green buildings and the built environment

•Promoting non-motorised transport Sustainable transport and infrastructure

•Expand off-grid options in rural and urban •REFIT optimisation for large scale renewable and localisation •Up-scale Solar Water Heater rollout

Clean energy and energy efficiency

•National payments for ecosystem services •Up-scale “Working for” programmes • Sustainable infrastructure and ecosystems integration •Offset programme* •Wildlife management*

Resource conservation and management

• Zero waste community programme for 500 000 households •Waste beneficiation

Sustainable waste management practices

• Integrated sustainable agricultural production system Agriculture, food production and forestry

•Water harvesting •Alternative technology for effluent management •Comprehensive municipal water metering (Demand Side Management) •Reduce water losses in agriculture, municipalities and mining

Water management

• Industry specific production methods* • Industrial production technology changes*

Sustainable consumption and production*

•Research, awareness, training, skills development and knowledge management Cross-cutting

2010-Green Economy Summit Green Economy key focus areas and related programmes

National development plan and new growth path targets Sector Medium-term , New Growth Path 2020 Long-term , National Development Plan (2030)

Employment 5 million additional jobs by 2020, with a total workforce of 18 million

Direct green economy-related: 300 000 additional jobs, of which 80 000 in manufacturing and the rest in construction, operations and maintenance

In the agricultural sector: 300 000 households in smallholder schemes by 2020; 145 000 jobs in agro-processing 2020; upgraded employment on commercial farms (currently total of around 660 000)

Increase employment from 13 million in 2010 to 19 million in 2020 and to a total workforce of 24 million by 2030

Direct green economy-related: Over 400 000 jobs

Agriculture (rural): 643 000 direct and 326 000 indirect jobs

Education 1 million students in FET colleges by 2014; from the current around half-a-million in 2010

30 000 additional engineers by 2014

50 000 additional artisan by 2015

Increase enrolment at university by at least 70% by 2030 reaching a total enrolment of 1.62 million, as compared to 950 000 in 2010

Produce 30 000 artisans per year

Energy mix 33 per cent of new generation from renewables and 25 per cent from Nuclear; currently at around 0 per cent and 4 per cent respectively

20 000 MW of the total new generation (40 000 MW) from renewables

- demand 1 million solar water heaters by 2014 5 million solar water heaters by 2030 - access None stipulated 90 per cent access to grid electricity, with the remainder meeting

their energy needs from off-grid sources.

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The Policy Environment

Key Reports: Green Jobs Report – impact of greening the economy on the labour market (Industrial Development Corporation). 4 key sectors were identified and unpacked. Projected job numbers: Short term – 98 000, Medium Term – 255 000, Long Term - 462000 1. Natural Resource Management – mega biodiverse country: ST – 45%, LT

– approximately 50%. 2. Green energy generation– abundance of solar energy and wind in select

areas: ST – 14% of total, LT – 28% of total 3. Energy and Resource efficiency: ST – 31 500, LT – 68 000 4. Emission & Pollution Mitigation – low hanging: ST – 8400, LT – approx –

32 000.

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Funding Mechanism • Government allocated R1,1 billion for Green Fund for the financial

years 2012/13 (R300 000 000.00),2013/14 (R250 000 000.00) and 2015/2016(R250 000 000.00) & 2016/2017 (R216 000 000).

• Development Bank of Southern Africa (DBSA) is the implementing

Agency. • The Green Fund represents a critical resource mechanism to

accelerate the transition to a low carbon, resource efficient and pro-employment growth path.

• The Green Fund will establish an evidence base consisting of lessons

learnt through funding the implementation of programmes and projects which may inform future programmes and financial support offered by the government of South Africa.

Green Fund Windows

Green Cities and Towns

Greening core municipal infrastructure such as

water, energy, transport and waste management

Sustainable human settlements, the built

environment and green buildings

Integrated planning for climate resilient cities

and communities

Low Carbon Economy

Cleaner production, reducing consumption

of natural resources

Climate mitigation, energy efficiency, renewable energy

and biofuels

Research and innovation to drive competitiveness in

green economy

Environmental & Natural Resource

Management

Sustainable management of

natural resources and investment in

ecosystem services

Sustainable agriculture and land

use practices

Rural and land based adaptation models

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Funding Mechanism • The Innovation Fund is designed to encourage: (DST- NRF)

– collaborative research and technology development programmes; – a multi-disciplinary approach to problem-solving; and – application-based research programmes

value-addition in respect of • (i) exploitation of our natural flora and fauna, and

(ii) advanced materials and manufacturing. • Industrial Development Corporation (IDC) established the Green Industries

Special Business Unit in 2011. R22 billion will be invested in green industries over 5 years period.

• The IDC and the German Development Bank (KfW) have partnered to make a

R500-million facility available for energy efficiency and self-use renewable energy projects -2012.

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TOWARDS GREEN GROWTH Environmental Performance Review:

• Streamline financing & incentive mechanisms to increase

investment & private sector finance in the Green Economy.

• Reform the pricing of water, sanitation & waste collection to

phase out free allowances for electricity, water and waste services.

• Improve transport infrastructure – integration of transport &

urban planning policies.

• Extend & improve the use of Green Taxes – use the revenue to

reduce impacts on the Poor &/or fund infrastructure & other high

priority areas.

• Apply a uniform, simple tax on the carbon content of fuels

across all sectors to achieve GHG emission targets.

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Development

THANK YOU

PRESENTED BY: TLOU RAMARU, CHIEF POLICY ADVISOR: SUSTAINABLE

DEVELOPMENT