Download the dti CCC

Policies and plans Regarding Green Economy
CHIETA Colloquium 13th February 2014
Zakhele Mdlalose
Contents
1. RSA Economic context
2. Green Economy Definition
3. The dti response to economic development
4. Green Economy governance, policies and regulatory landscape
5. Challenges to Green Economy development and Responses
thereof
6. The dti approach to Green Economy Development.
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Economic Challenges
Consumption-driven growth path
• SA’s growth path has hitherto been characterised by consumption-driven sectors
growing at twice the rate of its productive sectors.
Financialisation & import intensity
• The economy has experienced extensive financialisation, but the financial sector has
not supported productive sector investment; growth has been import-intensive rather
than based on growth in the domestic manufacturing sector.
Structural unemployment
• High structural unemployment has remained a constant, oscillating between 22,5%
and 25% on the narrow definition.
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Green Economy
Definition
• Green Industry Development: New products, Components, sectors
and services.
• Industry Competitiveness development: New ways of doing
business, Innovations to produce more for less. (Sustainability)
Pillars
• Renewable Energy, Energy Efficiency, Waste Management,
Nuclear and Water Efficiency.
Drivers
• Energy Costs (RSA)
• Climate change pressures and the need to respond thereof.
4
IPAP Transversal
Interventions
5
Key Constituencies for
Green Economy development
Government
• Development of policies, regulations and market measures
Organised labour
• Create and enabling investor friendly economic environment
Business, and
• To invest in the economy to support green economy
Civic organisations.
• Awareness creation and mobilisation for green goods
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Policy Response to Green Economy
development
National Development Plan (NDP)
Green Economy Accord
Strategic Infrastructure Programme (SIP)
Designation & Local Production (PPPFA)
National Industrial Participation Programme (Direct & Indirect NIPP)
(applies where the imported content => US$10 million)
Competitive Supplier Development Programme (CSDP)
Local Procurement Accord
Taxation Act
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RSA: Manufacturing challenges &
the need for designation
Manufacturing contribution to GDP (%)
In recent years, South Africa South Africa has been
posting trade deficits primarily due to deterioration
in commodities exports, high imports of fuel and
high value added goods.
The trade deficit amounted to R15.02bn in April
2013.
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Source: SARS, SARB Databases
The importance of local
production and content
•
•
Goods and services bought from abroad – represents an outflow of funds from South
Africa (reduces AD & local AS) – import spending is recorded as negative
Goods and services sold abroad – represents a flow of funds into the South African
economy (raises AD & local AS)
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Policy roles in promoting
green economy
• Leveraging public expenditure
• Supporting economic growth and creation of job opportunities in the country
• Attracting new investments (in particular, foreign direct investments)
• Reducing South Africa's trade deficit
• Overall savings due to lower impact of currency fluctuation (owing to high local
content) and faster response time to varying demand.
• Consistency of supply, quality-wise - compliance with SABS - SANS
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Designated sectors
Industry/sector/sub-sector
Minimum threshold for local content
Buses (bus body)
80%
Textile, clothing, leather and footwear
100%
Power pylons
100%
Canned / processed vegetables
80%
Rolling stock
65%
Pharmaceutical products
73%
(oral solid dosage tender)
Set-top boxes for TV digital migration
30%
Furniture



Office Furniture
School Furniture
Base and Mattress
Solar Water Heater Components (tank and



85%
100%
90%
70% (each)
the collector)
Power and telecommunication cables
90%
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How is the dti promoting
green economy
• Promote the green industry development.
• Local manufacturing and procurement
• Leverage industrial policy action plan as the support mechanism
to promote green economy
• To support climate change responses by providing incentives to
climate change mitigation, adaptation, finance and technology
into the overall industrial development strategy.
• Environment requirements to be used as trade and investment
support measures.
• To leverage procurement systems to ensure greening of the
supply chain and services thereof.
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The dti focus on green economy
Renewable Energy
Env & Energy Efficiency
Nuclear
-Solar Energy
- Wind Energy
-Biomass
-Biogass
-Landfill Gas
-Small Scale Hydro
-Small Scale Renewables
-Funding of the NCPC
-Strategic guidance
-Energy Efficiency
-Waste Mgt and Recycling
-Water Treatment
Efficiency
-Industrial climate change
response Measures
-Nuclear components
-Nuclear skills
-Nuclear Fuels
Nuclear Stds conformance
• Build local industry and local industry capabilities;
• Provide assistance to industry adaptation for technical and economic threshold; and
• Working with industry to formulate response to risks like carbon tax and
internationally uncompetitive behavior on trade and investment.
Mr Zakhele Mdlalose :
[email protected] / 012 394 1165
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