Green Economy Programme & New Growth Path

Presentation to Portfolio Committee 16 February 2011

Green economy as a government priorityMedium Term Strategic Framework 2009 - 2014:

For longer-term growth, implementation of Industrial Action Plan to support broad-based

industrialization including more advanced manufacturing, & encouraging cleaner, lower-energy technologies and green jobs

To pursue & explore further the concept of Green Jobs including scaling up labour intensive natural resources management practices that contribute to decent work and livelihood opportunities.

Green economy as a government priority (2)

Framework to the international economic crisis, 2009: development of incentives for investment in programmes geared at creating

large number of 'green jobs', i.e. employment in industries and facilities that are designed to mitigate impacts to the environment and natural systems and the protection thereof

Outcome 4Decent employment through inclusive economic growth

Outcome 10Environmental assets and natural resources that are well protected and

continually enhanced

New Growth Path Green Economy as one of the 6 key economic growth drivers

New Growth Path (NGP) & Green Economy

• Key Job Drivers in NGP– infrastructure– the agricultural value chain– the mining value chain– the green economy– manufacturing sectors, which are included in

IPAP2, and– tourism and certain high-level services.

Green economy key focus areas and related programmes

Overall enablers of implementation

• Regulatory framework• Market-based instruments• Innovation, science and technology• Investment, finance opportunities and financing

instruments including leveraging of funds• Greater localisation and manufacturing• Availability of skills• Institutional capabilities and capacity• Partnerships

Pre-requisites for resource mobilization*Generic programme pillars are assumed to match available resources*Projects within each programme should be scalable, replicable and capable of being prepackaged and aggregated as an investment bundle

High level Financial Resources Scan

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• Significant financial resources already in circulation in the SA economy investing in R&D , capacity building, pilots plus concessionary lines for bankable projects.

• Energy related programmes accounts for over 50% of international and 80% of local DFI funds

• Green economic policy instruments are being explored by the National Treasury and their impact on the fiscus may be adjusted accordingly

• Short term need to provide a national information portal on access to green resources

Programmes & Projects

Results of 1st Expression of Interest • 1st EOI: 154 project proposals and based on findings the waste, energy and agriculture have highest

job intensity, significant opportunities for localisation and most environmentally beneficial in the short to medium term.

• 2nd EOI: [200] projects received focusing on green industry potential (manufacturing & localisation), results pending from EDD and IDC.

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Preliminary Proposal for Priority Programmes…#1

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Clean Energy & Energy Efficiency

Sustainable Waste Management

Sustainable Water Management

1. Programme to facilitate uptake of Renewable Energy Feed-In Tarrif ( REFIT)

2. Expand working for Energy

3. Implement National Solar Water Heating (SWH) Plan

4. Support for clean energy beyond the REFIT

5. Programme to facilitate off-grid solutions

6. Clean energy local industry development programme

1. Zero Waste Portal

2. Waste recycling

3. Local Government Integrated Waste Management plans

4. Waste to energy

1. Strengthen supply-side watershed management approaches

2. Water Conservation and Demand Management

3. Enhanced effluent management, including a growing emphasis on resource recovery

4. A South African clearing house for carbon finance-related and water-offset projects

Preliminary Proposal for Priority Programmes…#2

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Agriculture & Food Production

Resource Management & Conservation

Green Cities & Built Environment

1. Integrated Sustainable Agricultural Production Systems

1. Expand Working for Resource Management

2. National Payments for Ecosystem Services Programme

1. Public Building Refit

2. Pilot green developments

3. SA Cities Knowledge Exchange

Preliminary Proposal for Priority Programmes…#3

Sustainable Transport Sustainable Consumption & Production

Resource Mobilization

Support the Bus Rapid Transit (BRT)/Integrated Rapid Public Transport Networks (IRPTN) projects

1.Transport and land use integration in the cities

2.The promotion of Non-Motorised Transport (NMT in the cities)

1. Industry targets and indicator programmes to formulate and adopt sustainable development performance monitoring to guide the integration of economic growth, social equity, and environmental protection including measures for institutional triple bottom line accounting

1. National public information portal on existing resources for green initiatives and database of success stories

2. Capacity building on pricing of externalities

3. Create virtual expert teams that support rapid response

4. Market study for aggregation mechanism

5. Financial and saving industry regulatory and legislative review

6. Carbon tax implementation13

Specific Projects moving forward

Energy

Energy cont…

Energy cont…

Transport

Agriculture

Agriculture Cont…

Waste

AWARENESS, TRAINING & SUPPORT

DEA Major green economy projects (EPWP Contribution)

Focus Areas (Projects) Budget for 2011/12 –

2013/14 MTEF (R’ 000)

Job Creation/ Skills Development

Targets

Working on Waste: includes waste recycling and buy-back centres, rehabilitation and or new landfill sites, Assist municipalities with street cleaning and general waste collection.

R 1, 813, 139 60, 111 Work Opportunities by March 2014

30, 056 Full Time Equivalents by March 2014

104, 482 Accredited Training Person days by March 2014

People and Parks: Development and upgrading of infrastructure in and around protected areas; Development of benefit sharing models for communities living around parks & protected areas.

Sustainable Land-Based Livelihood: includes creation of recreational parks, sustainable management of open spaces, landscaping & beautification, planting of indigenous trees, establishment of food and medicinal plant gardens, nursery as well as rehabilitation of wetlands

Working for the Coast: Cleaning along the coast, rehabilitation of coastal environment including but not limited to dunes, estuaries, etc. Upgrading of facilities and infrastructure along the coast.

DEA Other potential Major green economy projects (Unfunded and contribution to EPWP numbers)

Projects Investment Value

(R’ 000)

Job Creation Potential

(Work Opportunities)

Working on Waste: includes waste recycling and buy-back centres, rehabilitation and or new landfill sites, Assist municipalities with street cleaning and general waste collection.

R 60, 400 1,695

People and Parks: Development and upgrading of infrastructure in and around protected areas; Development of benefit sharing models for communities living around parks & protected areas.

R 441, 139 12,378

Sustainable Land-Based Livelihood: includes creation of recreational parks, sustainable management of open spaces, landscaping & beautification, planting of indigenous trees, establishment of food and medicinal plant gardens, nursery as well as rehabilitation of wetlands

R 551, 320, 15,469

Potential Environment Sector projects• Summary (excluding EPWP figures)

Total Number of

Projects

15 Targeted number of jobs

over the MTSF

Total Amount Required

over the MTSF period (to

2014),

Approx R2 500 000 000.00 150 000

Amount currently secured

(German Funds)

R 50 000 000

Possible funding streams Treasury’s green economy fund

DBSA

International Organisations

(OECD, EU, Individual member

states)

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Process to date and next steps: Towards A Green Economy Programme

Way Forward

• Build up a comprehensive portfolio of projects• Target specific funding streams and allocate

the necessary funds• Commence implementation before end of

financial year 2011/12

Thank You