Key Issues: Plenary Sessions

Presentation Outline Official Opening International Perspective Finance and Investment Industrial Perspective Green Jobs Sustainable Development Key Issues What is the challenge What works/ opportunities What must be done now

Official Opening

Key Issues Definition: A Green Economy offers a double dividend- more green jobs and less carbon emissions & impact on resources. Plan/Strategy must respond to development challenges and priorities. Must address interdependencies between economic growth, social protection & preservation of natural ecosystems As a development path, it is a good vehicle for dealing with climate change

Challenges: The is a need to remove policy barriers to creation of a viable green economy and coordination of government policy and institutions towards achieving the goals of a green economy. What Works: Collaborative efforts, investment in green industry development, innovation and science.

Recommendation Enhance local content in government procurement redesign existing jobs and workers skills or re-skill with green skills. stimulate investment in green industries & leverage on international support implement renewable energy target and specific plan for expanding our capacity in renewable energy ambitious targets for boosting electricity generation through alternative and clean energy Build partnership between business and labour Ensure adequate investment in R,D&I Need for a definitive target for the number of jobs that can be created in the green economy Explore green growth opportunities outside of energy generation

INTERNATIONAL PERSPECTIVE

Definition :Green Economy approach is a guaranteed “win-win” for environment and economic growth A direct path to new markets and economic opportunities An assured solution to problems of poverty reduction and social equity Probably the most dynamic & promising growth model of the 21st centuary

Challenges Subsidizing some green investment can be costly, especially if not well targeted e.g Tax breaks can reduce fiscal space Industrial policy to develop green markets and technologies has worked only for certain countries in certain circumstances. Each case has its own unique circumstances It is important to rely on comparative advantages for managing market and regulatory uncertainties

Key Issues We need stronger and clearer economic incentives We need price signals reflecting social costs of resource & environmental impacts We need to start with most available, low-cost and labor-intensive opportunities e.g Solar water heating Green building retrofits Off-grid power for more remote areas Installation of efficient water using devices

INDUSTRIAL PERSPECTIVE

Key Issues High expectations around green economy: High potential of creating Green job Economic crisis imperative – one of the main solutions Potential in determining future competitiveness Sustainable Management of Resources. Challenges includes, capital cost, markets and regulations Tracking Business progress to a low carbon economy through Carbon Disclosure Program Tracking Business progress through Energy Efficiency and Renewable Energy activities

Recommendations Fixing Market Failure: Tax (enviro-) & Tariff (feed-in), Standard Offer, Beyond GDP (assists coordination) Creating Markets: Standards (Portfolio & Performance), Preferential Procurement, Voluntary Markets (RE+EE) Innovation & Competitiveness: International Standards, International & Regional Cooperation, Investment in Strategic Pre-commercial Technologies (Demonstration) Industry Development: Public Company Spin-offs, Development Zones, Industrial Finance, Market Information Strategies that promote Behavioral Change Align, co-ordinate and integrate all policy or strategies that are currently under development e.g. IRP, Carbon Tax etc. Measurements and data collections

FINANCE AND INVESTMENT

Definition Economic implication of a green economy Poverty and Inequality must be addressed in the context of the management of natural resources Challenges Regulations and policies A Green economy can be expensive Institutional barriers to green technology policies Only proven to work with certain conditions

Financing and Investments What works There are some successful financed projects Increase in infrastructure lending Recommendations Take opportunities in green innovation, new market development and employment. Clearer economic incentives Consideration of the conditions of the poor

GREEN JOBS

GREEN JOBS Challenges Definition Green jobs can be defined as jobs aimed at ensuring environmental sustainability and protection in different sectors of the economy. Challenges A green Job is not necessarily a decent job Lack of clear strategy on social security and anti-poverty schemes Failure to create sustainable jobs through EPWP

What works The energy revolution has the potential to create more employment in the energy sector than continuing with Business As Usual, whether this is defined as the IEA reference scenario or the LTMS Investment in renewable energy on a large-scale, along with active support for local renewable technology manufacturing presents an opportunity for sustainable economic development and has significant job creation potential.

Recommendations There needs to be a substantial reduction in South Africa’s reliance on coal and nuclear energy must be phased out. SA needs proactive investment in renewable power generation and energy efficiency by the government on a large scale. SA should aim to obtain 36% of its electricity from renewable energy by 2030. The Industrial Policy Action Plan must include the creation of increased capacity for large-scale renewable energy manufacturing in RSA.

SUSTAINABLE DEVELOPMENT

Key issues South Africa has adopted a broader definition to sustainable development with the assertion that social, economic and ecosystem factors are embedded within each other and that a sound green economy strategy should be contextualized within this understanding Decoupling resource/environmental impact from economic activities and growth is a key element of a green economy approach

Challenges Sustainable development plan must include consideration about the worrying increasing gap between the rich and poor populations of SA, Delinking economic growth and environmental degradation through improving efficiency and sustainability in the use of resources and production processes and reducing resource degradation, pollution and waste

Recommendations Ensure integration of Green Economy plan into the national strategy on sustainable development Immediate implementation of green economy interventions will ensure relative decoupling (decouple economic growth from resource use)

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