3.2.1 The National Framework for Sustainable Development and the National Strategy for Sustainable Development
The NFSD, promulgated in 2008 (DEAT, 2008), established a broad framework that is intended to guide South Africa’s development along a sustainable path. It set out the vision for sustainable development and identified five strategic priority areas or pathways that would guide subsequent implementation plans. Although broad, the NFSD provides an enabling policy for investment in green technologies.
Following on from the NFSD, a more binding strategy and action plan known as the National Strategy for Sustainable Development and Action Plan or NSSD 1 (2011 – 2014) was approved by Cabinet in 2011 (DEAT, 2011a). The original priority areas of the NFSD were slightly reformulated (Table 3.1); 113 interventions identified and 20 indicators established to monitor and evaluate progress. Lessons learned from NSSD 1 are expected to feed into NSSD 2 (2015 – 2020).
Table 3.1: Strategic priorities of the National Strategy for Sustainable Development Action Plan (DEAT, 2011a)
Priority Areas NSSD 1
1 Enhancing systems for integrated planning and implementation 2 Sustaining our ecosystems and using natural resources efficiently 3 Towards a green economy
4 Building sustainable communities
5 Responding effectively to climate change 3.2.2 Medium-term Strategic Framework
The Medium-term Strategic Framework (MTSF) sets out the government priorities for the electoral mandate period, 2009 – 2014 (The Presidency, 2009). Although not mentioned as a specific priority area, growth in green technologies aligns well with the outcome to create decent employment through inclusive economic growth, the outcome stating that environmental assets and natural resources are valued, protected and continually enhanced, as well as the outcome that highlights the implementation of the NFSD. Various policy responses implemented in response to the MTSF have created an enabling environment for renewable energy and water management projects.
At the time of writing, the final version of the MTSF for the electoral period 2014 – 2019 was not available, but it is anticipated that it will address the same priorities as the NDP (See Section 3.2.7) and build towards the realisation of the 2030 vision.
3.2.3 Framework for South Africa’s Response to the International Economic Crisis
This economic policy document (RSA, 2009a), the Framework for South Africa’s Response to the International Economic Crisis, which was published in February 2009, was the first policy document to refer specifically to green jobs and has led to substantial green investment, particularly in renewable energy (Montmasson- Clair, 2012). It was produced as a result of collaborative efforts of government, business and labour and was facilitated by the National Economic Development and Labour Council (NEDLAC).
3.2.4 New Growth Path
The New Growth Path (NGP), launched in November 2010, aims to increase economic growth rates to between 6% – 7% per annum (Economic Development Department (EDD), 2010). The NGP follows on from the Reconstruction and Development Programme, the Growth Employment and Redistribution Programme and the Accelerated and Shared Growth Initiative of South Africa.
The cornerstone of the NGP is job creation, with a target of five million new jobs by 2020 and of these, 300 000 jobs in the green economy. Other priority areas are infrastructure development, agriculture, mining, manufacturing and tourism. The NGP aims to reduce the unemployment rate to 15% by 2020. It is envisaged that most of the projected new jobs will come from the private sector.
Although criticised for being an aspirational document that is lacking in operational details (Natrass, 2011), the NGP set the target for the number of jobs to be created in the green economy, a figure that is widely quoted.
3.2.5 Support Programme for Industrial Innovation
The Support Programme for Industrial Innovation (SPII) has essentially been operating since 1993, but has undergone various changes over time to improve its accessibility. It aims to support the development and commercialisation of new technologies in South African industry by providing financial assistance for innovative products and/or processes, particularly those at the ‘proof of concept’
stage. The programme is managed by the Industrial Development Corporation (IDC) on behalf of the Department of Trade and Industry (the dti).
At the end of the 2009/2010 financial year, there were concerns about discrepancies in the level of SPII’s outstanding commitments. A moratorium was placed on new applications and a review undertaken. Dormant and inactive projects were cancelled and according to the 2012/2013 Annual Report (SPII, 2013), there has been a gradual improvement in the effectiveness and efficiency of the programme. Notwithstanding its administrative challenges and the need to address some under-performing schemes, it remains a key intervention. Its impact is monitored through indicators such as local and export sales, taxes paid and jobs created. Over R1 billion has been invested in innovative technologies and more than 3 000 jobs created in South Africa (SPII, 2013).
3.2.6 Industrial Policy Action Plans
The implementation of the National Industrial Policy Framework, which was adopted in January 2007 and which sets out government’s policy on industrialisation, is captured in a series of Industrial Policy Action Plans (IPAPs). The IPAPs represent an integral part of the NGP. The first of these, IPAP 1, was released in August 2007 and since then there have been a number of updates. The IPAP 2 for the period 2010/11 – 2012/13 was the first to address a revised three-year planning period. In March 2013, IPAP 2 for the period 2013/14 – 2015/16 (the dti, 2013a) was released.
The first IPAP was focused on solar water heating. The 2011 revision was broadened to cover, inter alia, wind, solar and biomass energy, as well as water and energy- efficient appliances and materials, and waste and waste water treatment and energy and material recovery (the dti, 2011a).
The most recent IPAP 2 includes ambitious plans to boost renewable energy and local manufacturing of green technologies (the dti, 2013a). The central objective of IPAP 2 is the creation of jobs and one of the critical contributors is the support of green industries, renewables and energy efficiency.
Many challenges in the implementation of this plan have been identified, including the need for coordination across government departments and state entities. One such setback was the decision by the National Energy Regulator of South Africa (NERSA) to reduce the renewable energy feed-in tariff (REFIT) to procure electricity from independent power producers (IPPs) and thus significantly impacting the viability of many alternative energy schemes and compromising the attainment of the renewable energy targets in the Integrated Resource Plan (IRP) 2010 (DoE, 2011a).
3.2.7 National Development Plan
The NDP was released by the National Planning Commission (NPC) in November 2011. It followed closely after the diagnostic report, published in June 2011, which outlined the achievements and challenges of South Africa since 1994. In addressing South Africa’s development challenges, the NDP placed great emphasis on the need to ensure environmental sustainability and the role of green products and services in contributing to the creation of jobs, the alleviation of poverty and an equitable transition to a low-carbon economy (NPC, 2011).
Key points made in the NDP with respect to transitioning to a low-carbon economy include the need to invest in skills, technology and institutional capacity; the introduction of a carbon price; the need to create greater consumer awareness;
and the development of green products and services that will contribute to job creation in niche areas where South Africa has or had the potential to develop competitive advantage (NPC, 2011). Specific mention was made of a target of five million solar water heaters (SWHs) by 2030, the introduction of vehicle emission standards, plans for zero-emission building standards by 2030, and plans to simplify the regulatory regime to facilitate contracting for 20 000 MW of renewable energy by 2030.
3.2.8 Green Economy Accord
The Green Economy Accord (EDD, 2011a) was signed by the South African government and its partners from organised labour, business and civil society in November 2011. It represents an agreement under the overarching framework of the NGP. It is a collective commitment of 18 different ministries to the green economy.
There is a recognition that the green economy is founded on new economic activities, that the goal is to create at least 300 000 new jobs by 2020 and that the green economy must address the needs of women and youth, and provide broad- based black economic empowerment.
A number of opportunities based on current technologies were identified, however, the Accord also mentioned the role of innovation and the requirement for capital and investment to bring new technologies to market. The need for a localisation strategy that would assist in creating local industrial capacity, local jobs and local technological innovation was also highlighted.
Finally, a number of specific commitments were made, including the roll-out of one million solar-water heating systems by 2014/15; increasing investments in the green economy; procurement of renewable energy as part of the energy generation;
promotion of biofuels for vehicles; clean-coal initiatives; promoting energy efficiency;
waste-recycling; reducing carbon emissions in the transport sector; and electrification of low-income communities.
3.2.9 South Africa’s Green Economy Summit
In response to the United Nations’ call for a Global Green New Deal, the Department of Environmental Affairs and Tourism (DEAT)2 convened a Green Economy Summit in May 2010 to pave the way for the formulation of a Green Economy Plan. The Summit aimed at catalysing efforts towards a resource efficient, low-carbon and pro-employment growth path (DEAT, 2010).
Based on the Green Economy Summit, the DEAT requested UNEP to commission the South African Green Economy Modelling Report (SAGEM), which “aimed at assessing the impacts of green economy investments in selected sectors pertaining to the South African economy” (UNEP, 2013).
3.2.10 National Climate Change Response Policy
The 2004 National Climate Change Response Strategy represented the first direct recognition of the need for action on climate change. Two years later, the Cabinet commissioned the Long-term Mitigation Scenario study in an attempt to produce sound scientific analysis from which the government could derive a long-term climate policy. The study produced a series of policy recommendations. In July 2008, the Vision, Strategic Direction and Framework for Climate Policy were announced.
The current flagship policy in South Africa is the National Climate Change Response Policy (NCCRP), approved by Cabinet in October 2011 (DEAT, 2011b). This policy’s White Paper presents the South African government’s vision for an effective climate change response and the long-term, just transition to a climate resilient and lower carbon economy and society. It reflects a strategic approach referred to as “climate change resilient development”, addressing both adaptation and
2 The new name of this ministry was announced on 25 May 2014 as the Department of Environmental Affairs (DEA). However, all of the publications and activities mentioned in this report are those of the previous ministry, the Department of Environmental Affairs and Tourism (DEAT).
mitigation. The White Paper accepts the conclusions of the Intergovernmental Panel on Climate Change (IPCC); regards climate change as one of the greatest threats to sustainable development; reaffirms its commitment towards the UNFCCC and the Kyoto Protocol, and undertakes to develop a comprehensive national response plan of which the White Paper is an integral part.
South Africa’s response to climate change is organised around two major objectives:
(1) Managing the inevitable impacts through building resilience and emergency response capabilities.
(2) Making a fair contribution to global efforts to stabilise GHG concentrations in the atmosphere, in order to prevent dangerous anthropogenic
interference with the climate system, and within an appropriate timeframe.
Under the UNFCCC and its Kyoto Protocol, South Africa is committed to reduce its GHG emissions by 34% (by 2020) and 42% (by 2025) below its ‘business as usual’
(BAU) emissions growth trajectory. This commitment is contingent (in accordance with Article 4.7 of the UNFCCC) on the extent to which developed countries meet their own commitments to provide financial, capacity-building, technology development and transfer support to developing countries, including South Africa.
Accordingly, the NCCRP defines as a strategic goal the need to “prioritise cost- effective and beneficial mitigation policies, measures and interventions” that lead to a reduction in emissions below the country’s BAU trajectory as measured against a benchmark “peak, plateau and decline” GHG emission trajectory – where GHG emissions peak between 2020 and 2025, plateau for approximately a decade and then begin declining in absolute terms (DEAT, 2011b).
Adapting to climate change and making the transition to a much less carbon- intensive economy will require massive changes. Investments in green technologies will be essential to achieving the envisaged objectives of the NCCRP.
3.2.11 National Skills Development Strategy
The National Skills Development Strategy (NSDS III) was introduced in 2011 as an overarching strategy to guide skills development over the period 2011 to 2016 (DHET, undated). Although it does not specifically mention green technologies, it states that priorities that will take precedence in the National Skills Fund include skills to support the green economy.