2Presentation Outline Official Opening International Perspective Finance and InvestmentIndustrial PerspectiveGreen JobsSustainable DevelopmentKey IssuesWhat is the challengeWhat works/ opportunitiesWhat must be done now
4Key Issues Definition: A Green Economy offers a double dividend- more green jobs and less carbon emissions & impact on resources.Plan/Strategy must respond to development challenges and priorities.Must address interdependencies between economic growth, social protection & preservation of natural ecosystemsAs a development path, it is a good vehicle for dealing with climate change
5Challenges: The is a need to remove policy barriers to creation of a viable green economy and coordination of government policy and institutions towards achieving the goals of a green economy.What Works: Collaborative efforts, investment in green industry development, innovation and science.
6Recommendation Enhance local content in government procurement redesign existing jobs and workers skills or re-skill with green skills.stimulate investment in green industries & leverage on international supportimplement renewable energy target and specific plan for expanding our capacity in renewable energyambitious targets for boosting electricity generation through alternative and clean energyBuild partnership between business and labourEnsure adequate investment in R,D&INeed for a definitive target for the number of jobs that can be created in the green economyExplore green growth opportunities outside of energy generation
8Definition :Green Economy approach is a guaranteed “win-win” for environment and economic growthA direct path to new markets and economic opportunitiesAn assured solution to problems of poverty reduction and social equityProbably the most dynamic & promising growth model of the 21st centuary
9ChallengesSubsidizing some green investment can be costly, especially if not well targeted e.g Tax breaks can reduce fiscal spaceIndustrial policy to develop green markets and technologies has worked only for certain countries in certain circumstances. Each case has its own unique circumstancesIt is important to rely on comparative advantages for managing market and regulatory uncertainties
10Key Issues We need stronger and clearer economic incentives We need price signals reflecting social costs of resource & environmental impactsWe need to start with most available, low-cost and labor-intensive opportunities e.gSolar water heatingGreen building retrofitsOff-grid power for more remote areasInstallation of efficient water using devices
12Key Issues High expectations around green economy: High potential of creating Green jobEconomic crisis imperative – one of the main solutionsPotential in determining future competitivenessSustainable Management of Resources.Challenges includes, capital cost, markets and regulationsTracking Business progress to a low carbon economy through Carbon Disclosure ProgramTracking Business progress through Energy Efficiency and Renewable Energy activities
13RecommendationsFixing Market Failure: Tax (enviro-) & Tariff (feed-in), Standard Offer, Beyond GDP (assists coordination)Creating Markets: Standards (Portfolio & Performance), Preferential Procurement, Voluntary Markets (RE+EE)Innovation & Competitiveness: International Standards, International & Regional Cooperation, Investment in Strategic Pre-commercial Technologies (Demonstration)Industry Development: Public Company Spin-offs, Development Zones, Industrial Finance, Market InformationStrategies that promote Behavioral ChangeAlign, co-ordinate and integrate all policy or strategies that are currently under development e.g. IRP, Carbon Tax etc.Measurements and data collections
15DefinitionEconomic implication of a green economyPoverty and Inequality must be addressed in the context of the management of natural resourcesChallengesRegulations and policiesA Green economy can be expensiveInstitutional barriers to green technology policiesOnly proven to work with certain conditions
16Financing and Investments What worksThere are some successful financed projectsIncrease in infrastructure lendingRecommendationsTake opportunities in green innovation, new market development and employment.Clearer economic incentivesConsideration of the conditions of the poor
18GREEN JOBS Challenges Definition Green jobs can be defined as jobs aimed at ensuring environmental sustainability and protection in different sectors of the economy.ChallengesA green Job is not necessarily a decent jobLack of clear strategy on social security and anti-poverty schemesFailure to create sustainable jobs through EPWP
19What worksThe energy revolution has the potential to create more employment in the energy sector than continuing with Business As Usual, whether this is defined as the IEA reference scenario or the LTMSInvestment in renewable energy on a large-scale, along with active support for local renewable technology manufacturing presents an opportunity for sustainable economic development and has significant job creation potential.
20RecommendationsThere needs to be a substantial reduction in South Africa’s reliance on coal and nuclear energy must be phased out.SA needs proactive investment in renewable power generation and energy efficiency by the government on a large scale.SA should aim to obtain 36% of its electricity from renewable energy by 2030.The Industrial Policy Action Plan must include the creation of increased capacity for large-scale renewable energy manufacturing in RSA.
22Key issuesSouth Africa has adopted a broader definition to sustainable development with the assertion that social, economic and ecosystem factors are embedded within each other and that a sound green economy strategy should be contextualized within this understandingDecoupling resource/environmental impact from economic activities and growth is a key element of a green economy approach
23ChallengesSustainable development plan must include consideration about the worrying increasing gap between the rich and poor populations of SA,Delinking economic growth and environmental degradation through improving efficiency and sustainability in the use of resources and production processes and reducing resource degradation, pollution and waste
24RecommendationsEnsure integration of Green Economy plan into the national strategy on sustainable developmentImmediate implementation of green economy interventions will ensure relative decoupling (decouple economic growth from resource use)