Breakthrough: Corporate South Africa in a Green Economy

2. Mapping the green economy landscape in South Africa

23 Mapping the green economy landscape in South Africa Godwell Nhamo, Nedson Pophiwa and Mapula Tshangela 2 ABSTRACT This chapter maps the green economy landscape in South Africa where many such policy interventions have emerged: the 2009 framework for responding to economic crisis; the Medium-Term Strategic Framework 2009–2014; the National Strategy for Sustainable Development and Action Plan (NSSD1 2011–2014); the Long-Term Mitigation Scenarios; the 2010 Green Economy Summit Report [Statement of Conclusion]; the National Climate Change Response White Paper; the Medium-Term Budget Policy Statement 2011; the New Growth Path; the Industrial Policy and Action Plan II; Environmental Fiscal Instruments; the draft Carbon Tax; the Ten-Year Innovation Plan; National Skills Development Strategy 3; Integrated Resource Plan II; The Medium-Term Strategic Framework 2009-2014; Green Economy Accord; National Development Plan: Vision 2030; and policy statements leading from COP17 to RIO+20. The green economy interventions from industry discussed in this chapter include the CDP and CDP Water, King III (Integrated Reporting), and Climate Change Criteria on the JSE SRI. The aim of the chapter is to create a link and highlight the possible reasons why corporate South Africa has taken the decision to move towards a green economy. INTRODUCTION There is a great opportunity in the development of industries that combat the negative effects of climate change. South Africa needs to develop strong capacity in green technologies and industries. Through our actions, we need to respond to the notion that there is a tradeoff to be made between faster economic growth and the preservation of our environment (Jacob Zuma, President of the Republic of South Africa).1 Chapter 2 24 Considerable strides have been made in South Africa’s transition towards a green economy . The same is occurring at the global level as captured in UNEP’s report focusing on green economy transition that ‘a transition to the green economy is already underway ... but the challenge is to build on this momentum’.2 From white papers, draft policies, regulations and speeches by high-profile people in government and captains of industry to the private sector and civil society initiatives, the phrase ‘green economy’ has become a strategic ‘buzz word’ in South Africa. This landscape is shaped by both command and control approaches of the state (as embedded in national legislation) and voluntary approaches driven by non-state actors, including those at the international level. Much of the momentum gathered is as a direct influence of the 2008 NFSD that culminated in the cabinet approval of the 2011–2014 NSSD1 a few years later. The NFSD carefully conceptualised the relationship between the three generic pillars of sustainable development and governance. The NFSD and NSSD1 adopted a systems approach to sustainability as one where the economic system, the socio-political system and the ecosystem are embedded within one another, and then integrated through the governance system that holds all the other systems together in a legitimate regulatory framework.3 (See Figure 2.1) Figure 2.1 South Africa’s systems approach to sustainability Source: DEA There is a global impetus towards a green economy and it is hardly surprising that South Africa, which seeks to grow its competitiveness in international markets, has decided Economy Sociopolitical Ecosystem services Governance Mapping the green economy landscape in South Africa 25 to follow suit. The global financial crisis of 2008 was a major driver that culminated in alternative thinking about green economic growth, stimulated by what Simmons refers to as the global ‘crisis of the three Fs: financial, fuel and food’.4 An estimated 18 to 51 million people lost their jobs while the number of extremely poor increased by at least 100 million people worldwide. Rising fuel prices cost developing economies US$400 billion in higher energy bills in 2007, while increasing food prices cost developing countries US$324 billion in the same year.5 One could, therefore, ask what the drivers of green economy in South Africa are. In unpacking the context, the answer partly lies in what the 2010 Green Economy Summit [Statement of Conclusion] identified as key issues driving the ‘green economy paradigm’ in South Africa, and among them the following were noted: ■ Substantial growth in investment is necessary to achieve climate change mitigation and adaptation (with or without a binding international agreement) ■ There is an increased recognition that clean technology development offers significant business opportunities and gains ■ There is a...