1. The economic context of GreenChallenges and Opportunities for Transition
Sherman Indhul
6 September 2011

2. The economic context of GreenChallenges and Opportunities for Transition
Sherman Indhul
6 September 2011
3. Bill McKibben
Source: http://www.350.org
4. 392 (July 2011)
350 (May 2006)
316 (March 1958)
270 (800,000years)
Adapted from source: http://co2now.org/Current-CO2/CO2-Now/Current-Data-for-Atmospheric-CO2.html
5. A guiding principle for the transition to a Green Economy is the reduction of CO2 emissions.
Adapted from source: http://co2now.org/Current-CO2/CO2-Now/Current-Data-for-Atmospheric-CO2.html
6.

Efficiency 7. Effectiveness 8. Paradigm shifts 9. Language

C = V + D + P + CNS
10. The Journey

Sustainable development 11. The Green Economy 12. South African perspective

350ppm
13. The Journey

Sustainable development 14. The Green Economy 15. South African perspective

290ppm
the spring of technology
Source: http://www.telovation.com/articles/original-plans-eiffel-tower.html
16. Earthrise | Tipping Point 1968
323ppm
Source: http://www.nasa.gov/multimedia/imagegallery/image_feature_102.html
17. "polycrisis" refers to a multiple, mutually-reinforcing set of nested crises.
Adapted from source: http://en.wikipedia.org/wiki/Sustainability
18. Innovation
Capital efficiency
Total Shareholder Return
Job Creation
Local Economic Impact
Business Ethics
Resource Efficiency
Life-Cycle Management
Product to Service
Human Rights
IndigenousCommunities
Biodiversity
Zero Waste
Emission Reduction
Global Climate Change
Environmental Legislation
Adapted from source: http://en.wikipedia.org/wiki/Sustainability
19. The Journey

Sustainable development 20. The Green Economy 21. South African perspective

UNEP defines a green economy as one that results in improvedhuman well-being and social equity, while significantly reducing environmental risks and ecological scarcities (UNEP 2010).
22. x1
x2
x3
x4
x5
The only way forward is based on decoupling resource usage and economic growth
23. The Economy
Economic development based on accumulation of :
Physical Capital | Financial Capital | Human Capital
Public Policy | Public Investment
Capital misallocation to :
Climate | Biodiversity | Fuel | Food | Water | Global Financial System
Capital allocation focused on :
Property | Fossil Fuel | Financial Assets
Social impact :
Job loses | Socio-economic insecurity | Disease | Social instability
24. "polycrisis" refers to a multiple, mutually-reinforcing set of nested crises.
Adapted from source: http://en.wikipedia.org/wiki/Sustainability
25. 26. Private Sector
Finance and Investment | Skills
Public Sector
Redirect Public Investment | Polices and Investments | Mkt Infrastructure and Mechanism | Public Procurement
The
Green
Economy
Capital
reallocation
Climate | Biodiversity | Fuel | Food | Water |
Global Financial System | Property | Fossil Fuel | Financial Assets
27. Adapted from source: http://earthtrends.wri.org/updates/node/346
28. The Journey

Sustainabledevelopment 29. The Green Economy 30. SouthAfricanperspective

Legislative landscape
Concept of Carbon Taxation
National Integrated Waste Management Act in 2009 - 3R framework
Renewable Energy Feed-In tariff
2007
2009
2010
2011
2012
National Climate Change Response Green Paper
Reducing GHG emissions: The Carbon Tax Option Discussion Paper
Treasury request for business emissions
COP 17
31. Challenges

Energy & Carbon Intensive Growth 32. Water 33. Waste 34. Food security & agriculture 35. Biodiversity & Green infrastructure

Energy & Carbon Intensive Growth
Tons of CO2 per capita
Adapted from source: http://earthtrends.wri.org/updates/node/346
36. Water
Water prices in the sub-Saharan region are expected to rise as much as 40% in the medium and long term (Muller, 2007).

82% of freshwater ecosystems officially classified as threatened 37. 50% of wetlands have been destroyed 38. 36% of fish are threatened

Waste

By 2025 - 70% of South African citizens will reside in cities and towns. 39. Over the past 5 to 7years, landfill costs in most cities in South Africa have doubled. 40. Prior to the economic crisis of 2008, cities were producing MSW at a higher rate than the economic growth rate,.

Food security & agriculture

51% of households experience hunger 41. 28% are at risk of hunger

In urban areas, 70% of poor urban households reported conditions of significant and severe food security
Critical limits to agricultural production are due to a shortage of arable and high fertility land, current and projected climate change effects on water, exacerbated by the fact that South Africa is a dry country.
(NFCS-FB, 2007: McLachalan & Thorne, 2009) (Frayne et al, 2009).
42. Biodiversity and Green infrastructure
Species loss has been estimated to exhibit a decrease of almost 18% BII (Biodiversity Intactness Index)

34% of terrestrial ecosystems threatened 43. 82% of freshwater ecosystems threatened 44. 36% of fish threatened 45. 62% of estuaries threatened

Biggs, Reyers & Scholes (2006).
46. "polycrisis" refers to a multiple, mutually-reinforcing set of nested crises.
Adapted from source: http://en.wikipedia.org/wiki/Sustainability
47. The way forward is focused on decoupling the relationship between resource use and economic growth.
48.

Leapfrogging infrastructure 49. Improved Demand Side Mitigation and Adaptation 50. Innovation technology and enterprise 51. Policy, Legislation and Regulation

Source: Global Footprint Network (2010), UNDP (2009)
52. 53. 54. 55. 56. Business Enterprise Development
GRI Reporting
Integrating recycling into operational processes
Infrastructure
Human Capital
Technology
Procurement
Shareholder Value
Societal Value
After Sales
Service
Marketing
Sales
Outbound
Logistics
Operations
Inbound
Logistics
Rehabilitation
Infrastructure Impact
Waste
57. 58. 59. 60. Innovation
Capital efficiency
Total Shareholder Return
Job Creation
Local Economic Impact
Business Ethics
Resource Efficiency
Life-Cycle Management
Product to Service
Human Rights
IndigenousCommunities
Biodiversity
Zero Waste
Emission Reduction
Global Climate Change
Environmental Legislation
Adapted from source: http://en.wikipedia.org/wiki/Sustainability
61. A guiding principle for the transition to a Green Economy is the reduction of CO2 emissions.
Adapted from source: http://co2now.org/Current-CO2/CO2-Now/Current-Data-for-Atmospheric-CO2.html
62.

Efficiency 63. Effectiveness 64. Paradigm shifts 65. Language

C = V + D + P + CNS
66. The way forward is focused on decoupling the relationship between resource use and economic growth.
67. Thank you!
Sherman Indhul
MAC Consulting
Contact
8th Floor, The Mall Offices
Cradock Ave
Rosebank
0824445103
Phone: 011 5371800
Email: shermani@macgroup.co.za
www.macgroup.co.za