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SPEECH FOR MEC NANDI MAYATHULA-KHOZA
ENVIRONMENTAL IMPACT ASSESSMENT (EIA) OPEN DAY
EMPERORS PALACE
27 SEPTEMBER 2012
Programme Director
MMC’s and Councillors Present
Our valued Stakeholders
HOD Ms Simangele Sekgobela
DDGs and Senior Managers Present
Ladies and Gentlemen,
Members of the Media
Dumelang, Molweni, Sanibonani, Good Morning, Dimatsheroni
I am truly delighted to address you at the third (3) Environmental Impact
Assessment (EIA) Open Day. It is gratifying that this initiative which we
resumed in 2010, as the Gauteng Department of Agriculture and Rural
Development, has reached this milestone. Ladies and Gentlemen, as you would
recall the purposes for the EIA Open Day is to afford us collectively, as
Government and stakeholders, an opportunity to engage on the environmental
impact assessment and to also afford you, our valuable stakeholders, an
opportunity to give us feedback on the performance of the Department in the
EIA Regulations. Another reason we hold these open days, is to further hear
your concerns and valuable input on future EIA processes.
Ladies and Gentlemen, I am further delighted to be here as today also marks
the launch of the State of the Environment Report (SoER), which provides an
“environmental census” for the environment at a particular time for a specific
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area. The State of Environment Report (SoER) process will assist the Gauteng
Provincial Government (GPG), specifically the Gauteng Department of
Agriculture and Rural Development (GDARD), as well as other decision-makers,
to make informed decisions about our environment. It is compiled to present
information to the public about the condition and quality of the environment
that we live in, and to inform them about what is being done to improve the
environment. Details of the SOER findings will follow in the presentations to
come today.
During the State of the Nation Address earlier this year, President Jacob Zuma
stated: “the triple challenge of unemployment, poverty and inequality persists,
despite the progress made. Africans, women and the youth continue to suffer
most from this challenge.
Honourable Speaker and Honourable Chairperson as a national Cabinet, we
have taken the decision that we should do more to grow the country’s economy,
in order to get rid of the problems of unemployment, poverty and inequality in the
country.
Those are the three things that we will face head on, this year and in the coming
years.”
Programme Director, as President Zuma articulated, our country is facing a
serious challenge of high levels of unemployment, gross inequality and heart
wrenching poverty. These challenges happen at the backdrop of the global
recession which has brought new attention to chronic structural flaws in
current economic models and assumptions. As economies struggle to recover,
many are taking a closer look at the broad concept of a “Green Economy,” an
economy that simultaneously promotes sustainability and economic growth.
Ladies and Gentlemen, the theme for the 2012 EIA Open Day is “the Green
Economy: Does it include you?”. An apt theme as the Green Economy can be
thought of as an alternative vision for growth and development; one that can
generate growth and improvements in people’s lives in ways consistent with
sustainable development. A Green Economy promotes a triple bottom line
namely:
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sustaining and advancing economic,
promoting environmental protection and
ensuring social well-being.
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Ladies and Gentlemen, the prevailing economic growth model is focused on
increasing GDP above all other goals. While this system has improved incomes
and reduced poverty for hundreds of millions, it comes with significant and
potentially irreversible social, environmental and economic costs.
Programme Director, sadly we realize that poverty persists for as many as two
and a half billion people worldwide, while the natural wealth of the planet is
rapidly being drawn down.
In a recent global assessment, approximately 60 percent of the world’s
ecosystem services were found to be degraded or used unsustainably. And
unfortunately worldwide the gap between the rich and poor is also increasing –
between 1990 and 2005, income inequality (measured by the gap between the
highest and lowest income earners) rose in more than two thirds of countries,
the world over, so this is clearly not unique to South Africa and therefore
requires a global outlook to tackling the issue.
Programme Director, the persistence of poverty and degradation of the
environment can be traced to a series of market and institutional failures that
make the prevailing economic model far less effective than it otherwise would
be in advancing sustainable development goals. These market and institutional
failures are well known to economists, but little progress has been made to
address them. For example, there are not sufficient mechanisms to ensure that
polluters pay the full cost of their pollution. There are “missing markets” –
meaning that markets do not systematically account for the inherent value of
services provided by nature, like water filtration or coastal protection. A
“market economy” alone cannot provide public goods, like efficient electricity
grids, sanitation or public transportation. And economic policy is often shaped
by those who wield power, with strong vested interests, and rarely captures the
voice and perspectives of those most at risk.
A Green Economy, therefore, attempts to remedy these problems through a
variety of institutional reforms and regulatory, tax, and expenditure-based
economic policies and tools.
Ladies and Gentlemen, the green economy is one that results in improved
human well-being and social equity, while significantly reducing environmental
risks and ecological scarcities. Green economy is an economy or economic
development model based on sustainable development and knowledge of
ecological economics.
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Programme Director, the transition to a Green Economy has a long way to go,
but several countries are demonstrating leadership by adopting national “green
growth” or “low carbon” economic strategies. And there are many examples of
successful, large-scale programs that increase growth or productivity and do so
in a sustainable manner. For example:
1. The Republic of Korea has adopted a national strategy and a five-year
plan for green growth for the period 2009–2013, allocating 2 per cent of
its gross domestic product to investment in several green sectors such as
renewable energy, energy efficiency, clean technology and water.
2. The government has also launched the Global Green Growth Institute
which aims to help countries (especially developing countries) develop
green growth strategies.
3. In Mexico City, crippling congestion led to a major effort to promote Bus
Rapid Transit (BRT), a sophisticated bus system that uses dedicated
lanes on city streets. Significant public investment in the BRT has
reduced commuting times and air pollution and improved access to
public transit for those less able to afford private cars. This remarkable
success is now being replicated in cities across Mexico and has led to
investment from the federal government in urban public transit for the
first time.
4. China now invests more than any other country in renewable energy. Its
total installed wind capacity grew 64 percent in 2010. This growth is
driven by a national policy that sees clean energy as a major market in
the near future, and one in which China wants to gain a competitive
edge.
5. Namibia is managing its natural resources to generate economic, social,
and environmental benefits. Local communities across the country are
granted the right to use and capitalize on the benefits of using wildlife
and other natural resources within the boundaries of “communal
conservancies.” With an economic incentive to sustainably manage these
areas, food and employment is being provided for hundreds of thousands
of Namibians in rural areas. More than half of the jobs are filled by
women, and wildlife populations have increased.
6. South Africa - IDC: The green economy has been identified as one of six
drivers to create five million jobs by 2020 and help drive down
unemployment which is currently running at 24 percent.
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In presenting his 2011 budget speech, Minister Ebrahim Patel, the Minister for
Economic Development indicated that South Africa will invest 25 billion rand
to support a plan to ramp up renewable energy and the green economy. The
Minister indicated that this investment will create a market for significant
private investment. "We believe 300,000 new jobs are possible in the green
economy by 2020 if we move with speed to provide the right regulatory
and investment environment," Minister Ebrahim Patel told parliament.
Programme Director, as we know our country has been long criticized for its
coal-reliance, and we recently unveiled plans to double energy generation over
20 years, with 42 percent of the new power supply coming from renewables.
The Industrial Development Corporation (IDC) and the German Development
Bank (KfW) have partnered to make a R500-million facility available for energy
efficiency and self-use renewable energy projects called the Green Energy
Efficiency Fund. The Green Energy Efficiency Fund supports the IDC’s
alignment to the Industrial Policy Action Plan (IPAP2) and the New Growth Path
with specific focus on growing the Green Economy.
The Green Energy Efficiency Fund provides an option for bridging finance to
address the funding gap between the actual investment and the process
required to obtain Eskom incentives/rebates. Energy Efficiency (EE) and
Renewable Energy (RE) initiatives are vital to maintain the energy supply and
demand balance and to ensure energy security within South Africa. Energy
efficiency must be a strategic priority for companies as South Africa moves to
higher, cost-reflective electricity pricing. Mr. Mr Nico Kelder, a Senior
Economist in the Department of Research and Information at IDC will expatiate
on IDC initiates on this area later during the day.
Water and Environmental Affairs Minister Edna Molewa made the
announcement ahead of her department's budget vote in Parliament, that the
National Treasury has allocated R800-million over the next two years for South
Africa's Green Fund, which aims to provide finance for high-quality, highimpact, job-creating green economy projects around the country.
Minister Molewa said the money represented a critical mechanism for achieving
a just transition to a low-carbon, resource-efficient and job-creating green
economy growth path in South Africa. She further elaborated that "the
primary objective of the Green Fund is to provide catalytic finance for
high-quality, high-impact green economy projects and mainstreaming
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activities which would not have been implemented without fiscal
support," The Minister said it was up to South Africans to debunk the myth
that environmental management hindered development, by positioning the
sector as a major contributor to job creation and the fight against poverty. "The
transformation of our industries towards the building of a green
economy has many facets; [it is mainly] about creating new labourabsorbing industries that also mitigate impacts on the environment.
"This green economy offers substantial opportunities for job creation and
development in the environmental goods and services sector, particularly
in biodiversity, waste and natural resource management services."
Ladies and Gentlemen, we are further encouraged by recent developments as
reported in the Business Report on 16 November 2011 that Anglo American
has launched a R100 million investment fund aimed at empowering and
encouraging entrepreneurs to operate in South Africa’s green economy.
According to Anglo American, the Green Fund, which is Zimele’s fourth Fund,
aims to make a real difference to South Africa’s environmental sustainability
and economic growth, by empowering and encouraging entrepreneurs to
operate in the green economy.
The Fund targets investment opportunities that specifically play a role in
mitigating environmental risks and improving the long term environmental
welfare of communities. Initiatives that receive funding from the Green Fund
could contribute to sustainable development by many means such as reducing
carbon emissions, energy and water consumption, or improving waste and
emissions management.
The Fund’s main priorities are to create jobs, promote sustainable development
within the communities surrounding Anglo American’s operations, manage the
green agenda, and ensure the transference of green skills.
A maximum of R10 million may be allocated to each investment either in the
form of a loan (repayable at the current prime interest rate) or a blend of debt
and equity. Loan funds are used for working capital and capital expenditure,
and must be repaid, and on time. The loan is accompanied by consistent and
meaningful support, and Zimele aims to ensure that the funded businesses
ultimately achieve sustainable success.
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If required, Zimele will take up a minority equity position in the investee
company. It may acquire equity stakes in selected businesses ranging between
10% and 49%, with commercial grounds for both entry and exit.
As with all the Zimele funds, the acceleration of black economic empowerment
(BEE) opportunities is a priority for the Green Fund, and thus, it is fully
committed to the development of black empowerment partners as
entrepreneurs and full-time value-adding managers or operators.
In many ways, Green Economy objectives simply support those already
articulated for the broader goal of sustainable development. But this new
framing responds to two recent developments. First, there is a deeper
appreciation today by many governments, companies, civil society and the
public that we are reaching planetary limits, not just in terms of greenhouse
gas emissions but also in our use of water, land, forests and other natural
resources. The environmental and social costs of our current economic model
are becoming more and more apparent.
Past sustainability efforts have not focused sufficiently on fixing the failures of
economic policies. But we now have a chance to tackle these challenging
problems given the policy openings created by the response to the financial
crisis. Second, and perhaps even more important, the global recession has led
to a reconsideration of key tenets of the current economic model – such as the
primacy of growth and the belief in light-touch regulation. In openly
questioning the strength of the status quo, many public- and private-sector
leaders are seeking:
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
Policies and regulations that can identify and manage
financial and other risks more effectively
New markets and industries that can create good, long-term
jobs
Public support for innovation to position a country to
compete in tomorrow’s markets
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Ladies and Gentlemen, one question people sometime ask is “can we afford
this?” We’re still in the wake of the global financial crisis and many people
perceive Green Economy solutions as expensive. The United States is asking
itself whether it can afford to put a price on carbon today. Developing countries
are concerned that transitioning to a Green Economy will hinder economic
growth and the ability to reduce poverty.
Moreover, there will be short-term, nontrivial losses associated with changes in
industry and market structure (e.g., a decline of the coal industry and related
job losses.) Supporting those actors who will bear the brunt of the transition
will be critical to building broad ownership for a Green Economy.
Some countries feel that they are lagging in green technology know-how and
therefore will be at a competitive disadvantage in the race for future markets.
Others feel that the Green Economy is a pretense for rich countries to erect
“green” trade barriers on developing country exports. These are all legitimate
concerns that deserve attention.
Ultimately, a hard-nosed economic analysis should inform decisions on what
policies and investments to promote today. When the full costs and benefits
over time are taken into account however, many Green Economy solutions will
be seen as more attractive. Nevertheless, there will still be difficult choices and
tradeoffs. For example, should India aggressively promote grid-connected,
relatively expensive solar power when hundreds of millions in the country still
have no access to electricity? And even where Green Economy solutions make
economic sense, they may be politically challenging. The transition to a Green
Economy will not be easy.
The principal challenge is how we move towards an economic system that will
benefit more people over the long run. Transitioning to a Green Economy will
require a fundamental shift in thinking about growth and development,
production of goods and services, and consumer habits. This transition will not
happen solely because of better information on impacts, risks or good economic
analysis; ultimately, it is about politics and changing the political economy of
how big decisions are made.
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The problem is vested interests. Those who benefit from the status quo are
either overrepresented in or have greater access to institutions that manage
natural resources and protect the environment. U.S. climate legislation, for
example, was defeated in no small part by resistance from fossil-fuel based
energy advocates.
The following steps would help create a more level policy-making playing field:
1. Increase public awareness and the case for change. Greater visibility on
the need for this transition can motivate voters and consumers - not
just because of the costs but also the economic benefits generated by a
Green Economy, such as new jobs and new markets. People will not
adopt policies because they are green. They will do so when they believe
it is in their interest.
2. Promote new indicators that complement GDP. Planning agencies and
finance ministries should adopt a more diverse and representative set of
economic indicators that focus less exclusively on growth and track the
pace and progress of development.
3. Open up government decision-making processes to the public and civil
society. This would help ensure policies are accountable to the public
and not to vested and well-connected interests.
4. Identify and take advantage of political leadership when available as this
will be crucial in order to limit the undue influence of “dirty” economic
holdouts.
Ladies and Gentlemen, timing is everything when it comes to big policy
reforms. Green Economy advocates will need to be ready when that window of
opportunity presents itself. Ultimately, the widespread transition to a Green
Economy will depend on whether or not the long-term public interest is
reflected in today’s economic policies.
In closing let me quote the late Wangari Maathai: “The environment and the
economy are really both two sides of the same coin. You cannot sustain the
economy if you don’t take care of the environment because we know that the
resources that we use whether it is oil, energy, land … all of these are the basis
in which development happens. And development is what we say generates a
good economy and puts money in our pockets. If we cannot sustain the
environment, we cannot sustain ourselves.”
I thank you.
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