On the eve of a major International Climate Change Conference to be hosted by South Africa, social partners and government signed a Green Economy Accord at parliament in Cape Town today, which commits signatories to a partnership to build and grow the green economy.
The Accord notes that up to 300 000 jobs are possible within a decade if South Africa seized the opportunity now and actively invested in the green economy.
The Accord, one of the most comprehensive social partnerships on the green economy anywhere in the world, came about through discussions conducted under the New Growth Path.
It was signed by representatives of business organisations, trade unions, community organisations and a number of Cabinet members.
Ten Cabinet Ministers were actively involved in the discussions, namely the Ministers of Energy, Economic Development, Environmental Affairs, Finance, Trade and Industry, Labour, Public Enterprises, Transport, Rural Development and Agriculture.
Business delegates included those from large companies as well as small businesses.
All three labour federations with a joint membership of more than two million workers (Congress of South African Trade Unions (Cosatu), Federation of Unions of South Africa (Fedusa) and National Council of Trade Unions (Nactu) were represented.
Community representatives were drawn from women, youth, cooperatives and civic formations.
The Accord contains commitments by each party, as well as a monitoring and evaluation mechanism to ensure that the goals of the Accord are met.
At the signing ceremony today, Minister of Economic Development, Ebrahim Patel, welcomed the Accord.
“This Accord shows that social partners are ready for COP17, the United Nations climate-change Conference due to be hosted by South Africa in ten days time. In the Accord, the parties agreed to work closely with government during and after the Conference to realise the success of the work and agenda of COP17.
“Business will demonstrate products and technologies that showcase South African efforts around climate change. Labour, business and community organisations will join government in communicating the message of partnership on the green economy in the Accord,” Minister Patel said.
“The green economy can create large numbers of jobs, provide a spur for industrialisation and help to create a sustainable future for this and the next generations. This Accord is one of a series of agreements in which social partners commit to work together to achieve the goals of the New Growth Path. South Africans are drawing together to achieve common national objectives,” he said.
At least 3 million households in South Africa still rely on traditional energy carriers like candles and firewood, leading to continued environmental degradation particularly in rural areas and in urban informal settlements. South African industry emits high levels of carbon into the atmosphere as a result of the past reliance on coal-based technologies for energy generation.
The Accord is part of an ambitious plan to shift the economy to a lower carbon-intensity whilst increasing jobs and industrial development and it contain commitments in twelve areas, ranging from installation of solar water heating systems, to increased investment in green industrial activities and the promotion of green skills at technical level.
Key points in the Accord include commitments:
- by Government to the installation of one million solar water heating systems by 2014/15 and to use this to expand the local production of components and heating systems
- by the insurance industry to promote the use of locally-manufactured solar water geysers for insured replacement of a damaged electric hot-water geyser. About 200 000 such electric geysers are replaced annually and it constitute a major market
- by Organised labour to help form cooperatives and/or social enterprises of retrenched employees to be trained in the installation and maintenance of solar water geysers and to utilise support in the public and private sectors. Labour commits to provide support to such social entrepreneurs, including through the Job Creation Trust
- by the Industrial Development Corporation to ensure funding of up to R25 billion for investments in green economy activities over the next five years
- by Government to procure 3 725 Megawatts of renewable energy for use in the grid by 2016 (which is more than the energy usage of Cape Town, the country’s second largest city)
- by the private sector to strengthen existing efforts by financial institutions to fund investments in the green economy and pursue investment opportunities in manufacturing linked to renewable energy initiatives.
- by companies to strengthen investment in projects to improve environmental performance of existing production facilities
- by the renewable energy industry (solar and wind) to create at least 50 000 green jobs in renewable energy activities by 2020, of which about 6 500 will beengineers and technicians, develop a ‘roof-top’ programme, that aims to install 300 000 solar PV power generation units on or at residential, commercial and industrial buildings by 2020 and to work with government to create local industrial capacity, with an initial minimum target of 35% localisation as a first part of an aspirational target of 75% local content
- by industry to strengthen and contribute to skills development initiatives aimed at training up artisans, technicians and technical professionals in order to increase the number of skilled South African’s qualified to build and operate plant in South Africa
- by Business to develop benchmarks for sector and subsector energy efficiency and company energy-management plans in support of the National Energy Efficiency Strategy, which includes a transition to the following sectoral energy intensity targets by 2015:
- Commercial and public buildings: 10%
- Residential: 15%
- Transport: 10%
- Industry: 15%
- Mining: 15%
- by organised labour to establish joint workplace committees to discuss and implement energy efficiency plans. This will include a lights-off after hours campaign in buildings and workplaces and to educate members on the importance of energy efficiency
- by Government to provide a supportive regulatory environment to facilitate the development of a local biofuels industry, finalise the recently-published mandatory blending regulations that set targets of 2% bio-ethanol and 5% bio-diesel standards to be applicable in the South African market and introduce an incentive system to kick-start the development of a local biofuels industry
- by Business to support smallholder schemes, communal land and co-operatives in the supply of feedstock for private sector ventures, in order to ensure extensive empowerment as a result of the biofuels strategy. These measures include restarting farming where land is fallow, recapitalisation of equipment, training and financial support for inputs such as fertilisers and extension services
- by Government to put regulatory measures in place that will progressively phase out the use of incandescent lighting for general domestic and commercial use, including in public buildings, through the application of a combination of incentives for energy efficient lighting systems and increased customs duties on incandescent lighting. Business commits to support such efforts
- by Eskom to consider new technologies that can improve the energy efficiency of its existing coal-fired power stations
- by Business to actively promote the technologies and know-how of retrofitting among companies and households. Commercial buildings in particular can benefit from the introduction of new heating and insulation systems
- By Organised labour to establish social enterprises (including cooperatives) and promote retirement fund investment in green investment vehicles that will create jobs and support the broader goals of the green economy
- by Government to invest in mass-transport systems that will make it easier for South Africans to travel using public transport and thus reduce reliance on private car-use. Initial steps have been taken on the bus rapid transport systems as well as commuter rail systems. Government has committed to improve investment in infrastructure and rolling stock: to this end, PRASA plans to invest R20 billion by 2014 and R130 billion beyond the period
- by Government to reviewing the investment in rail infrastructure and rolling stock in order to ensure a greater shift of freight transport to rail instead of road transport. Transnet plans to invest about R63 billion in the freight rail system over the next five years
- by Business to actively promote greater use by companies of rail as a means of freight transport
- by Government and business to the employment of young people in green economy activities. In this regard, it is agreed that at least 80% of new employees in the manufacturing and installation of solar-water heating systems and in public and community works programmes directed at environmental challenges, will be young people. Further targets for the employment of youth will be developed for other green economy activities that rely on public funding or support
- by Government to expand training programmes linked to the skills needs of the green economy, including through the efforts of Further Education and Training (FET) colleges and Sector Education and Training Authority (SETAs). Government will convene a meeting of stakeholders to quantify the skills required over the next five years in the sector and work with colleges, universities and training institutions in the private sector to provide the required training programmes
- by all parties to support clean coal technologies applicable to power generation, including carbon capture and storage technologies and through international collaboration with countries facing similar coal development challenges
- by all parties to promote South African developed technology in the production of electric-powered vehicles
- by all parties to promote manufacture of clean cooking stoves and heaters for the local and African market, which provides an opportunity for industrialisation
- by all parties to bring small enterprises and social enterprises into the green economy. The green economy offers opportunities for Broad-based black economic empowerment and addressing the needs of women and youth entrepreneurs. Often such enterprises are unable to access available funding because information is not available to them or application processes are cumbersome. The parties agree to support green funding road shows to increase public awareness of the opportunities that exists and the funding that is available
- by all parties to pursue proposals for including green awareness issues in future curriculum development in the education system.
For more information, contact:
Saleem Mowzer
Cell: 082 808 8135
