hall2c wednesday 09h00 - steve nicholls
TRANSCRIPT
It’s the economy, stupidFraming a conversation on the green economy
NCPC Industrial Efficiency Conference July 2015
Acknowledgements
The prefix we put before the word economy reflects our bias: “It’s the economy, stupid”
We are all in effect trying to communicate the same simple idea – the economy we have is not delivering the outcomes we need.
A major aim of this project is to establish some frameworks that enable us to meaningfully engage in a conversation about economic transition and the impacts on the whole economy.
Does the green economy include jobs or not? The futility of the definition debate.
Source: UNGC, CEO Survey, 2013
An economic principles framework, currently being tested with stakeholders and subject to review, provides a basis for us to structure quantitative discussions about the trade offs of particular interventions
1. Efficiency – minimise the financial and natural resources required in production and consumption
2. Resilience - withstand variability in social, economic and environmental conditions
3. Preservation of natural capital - halt and reverse the decline in natural capital
4. Social equity - minimise barriers to participation in the economy
5. Job creation – maximise the number of people in employment
6. Growth - Create new economic opportunities
7. Governance – Ensuring a transparent and effective system of governance
In order to transform our economies we will need to produce and consume goods and services very differently
Source: LaunchCapital, Megatrends InfoGraphic
The size of the prize is significant, US$350 billion across Africa
To drive progress we need collaboration across business, government, labour and civil society
Business leaders across Africa have told us that this new era of sustainable business will not be ushered in by individual companies operating alone — it will require collaboration amongst industry, governments and NGOs to pool their capabilities to achieve a brighter future for all.Source: Reimagining Africa’s Future, NBI and Accenture, 2015
Source: UNGC, CEO Survey, 2013
A missing party to this conversation is the finance sector
The state of finance in South Africa is complicated by relatively low levels of private equity and venture capital
Sweat Equity
Grants
Venture Capital
Concessional Debt
Private Equity
Cormmercial Debt
Stage of Project Development
Leve
l of A
ctiv
ity/F
undi
ng
The state of finance in South Africa is even more complicated for smaller enterprises
Sweat Equity
Grants
Concessional Debt
Commercial Debt
Stage of Project Development
Leve
l of A
ctiv
ity/F
undi
ng R500 millionIt is particularly challenging for small businesses who are seeking to borrow/invest smaller amounts of money, the threshold for a large investment bank to really engage with a project
The success of REIPPPP is an example of the benefits of getting this correct
R170 billion private sector investment at a March 2015
The NBI aims to drive a multi-stakeholder discussion to identify additional areas of investment and developing collaborative solutions to unlocking investment in these areas
A major output of the literature review phase is a framework of conversation tools that can be used to drive similar conversations in any economy
The conversations we have facilitated so far:
110
122
Workshops held to date
People attended
Durban
Johannesburg
Cape Town
61
Over 60 Different Institutions
2 Pretoria
The emerging priority areas identified requiring innovation and collaborative solution development
• Industrial Symbiosis• Waste to Energy• REIPPPP Expansion• Smart Grids and Meters• Energy Efficiency• Rooftop Solar• Energy Storage (Batteries)• LNG expansion• Protecting South Africa’s
High Altitude High Value Catchments
• Restricting water losses in municipalities
• Acid mine drainage treatment
• Waste water management• Municipal capacity
building• Small scale manufacturing• Road to rail switching• Public transport• Small scale farming and
food systems
What is needed is governments, business, labour and civil society working together to propose solutions
Phase 1: Research Phase
Phase 2: Intervention Discovery
Phase 3: Solution
Development and Barrier
Identification
We are here, join us and share your views
For more details please contact:
Steve Nicholls Lead: Climate Change, Green Economy and Water [email protected] Tel: +27 11 544 6000 Cell: +27 83 786 5058 Web: www.nbi.org.zaTwitter: @NichollsSteve