Programme director
Ministerial colleagues
Distinguished guests
Let me start by thanking the Minister of Environmental Affairs and her officials for organising this summit.
As you know, the economics cluster agreed that we should develop a green economy plan/strategy.
This is an important conference in that it allows departments to indicate how they will contribute to the development of a green economy in South Africa.
The conference draws together several departments which have the responsibility of developing a green economy strategy and plan. The integrated character of ‘green’ activities requires inter-departmental collaboration and we have established a joint task team.
One of the areas we will have to address is the need to remove policy barriers to the creation of a viable green economy and to ensure that the plan recognises the transversal nature of a green economy.
Government will have to work in a coordinated manner because this area of socio-economic opportunity is a key to economic growth and decent work.
That is why we have come together today, to jointly think about and plan what should be done.
The long-term greening of the economy needs new thinking to fundamentally transform the economy, including addressing deep-seated production and consumption issues.
And we should not forget the importance of investment in the social and policy sciences and support for the development of policy and planning tools for a green economy.
Fortunately, there are many non-government organisations (NGOs), academics and small businesses that have been exploring green economy opportunities for some time and we will benefit from working closely with them.
I would like to make four comments.
My first comment is we need to expand science and technology r&d to support growth in the green economy.
If we set South Africa a target of 1.5 percent of Gross Domestic Products (GDP) by 2014, we will be able to substantially increase our investments in green industry research, development, and innovation without compromising other promising and important industrial development or science programmes. A key requirement for achieving this important goal is a strong synergy between industry and government.
We are focusing our efforts on building a strong Technology Innovation Agency (TIA) that will be in a position to support innovation-led industrial development for all promising sectors, including green industry development. TIA is also developing close links with other development finance institutions such as the Industrial Development Corporation (IDC) to ensure government support for promising industrial development opportunities.
The TIA already has an important green industry portfolio that it inherited from the former innovation fund. There a number of additional opportunities in energy and green materials that should join the green industry portfolio of TIA.
The Department of Science and Technology (DST) is playing a significant role in shaping a new growth path for the economy. It is a path that includes a greater emphasis than before on knowledge and sustainability as drivers of long-term economic development. It is a new growth path that supports the creation of decent work whilst reducing income equality in South Africa.
Let me tell you about four specific interventions to illustrate what I mean.
First, as part of a broader Advanced Manufacturing Technology Strategy (AMTS), we have invested considerably in a three year research and development programme targeted at demonstrating our research and innovation capabilities in bio-composites.
This project is now at the half-way stage. An experimental bio-based composite (using a chemical resin) has been produced by the Council for Scientific and Industrial Research (CSIR) and has demonstrated suitable properties for use in aircrafts. The next phase of the project is to focus on the development of bio-based resins.
Successful demonstration of our capabilities can provide the stimulus to create an entire industry in South Africa in bio-composites, not only for bio-composites for the aerospace industry but for a range of other applications as well.
Second, we are also supporting the development of bio-degradable packaging for our fresh fruit, an important export requirement. We support a strong stance against unfair trade provisions whilst adopting a long-term view of effectively adapting to a changing international policy environment.
Third, we have introduced a technology localisation strategy to provide technology and technical support to local manufacturing companies. We prioritised the foundry industry. A key area of support that was identified by the foundry industry is the need for improvements in lean and green manufacturing.
There is a strong commitment across government, at the policy and intervention level, to develop local content in government procurement.
The DST is in partnership with the Department of Public Enterprises and Department of Trade and Industry to support these local engineering companies in large-scale public sector procurement. The DST’s aim is to stimulate and support local manufacturing firms in engaging with the national localisation programmes, with a specific focus on Eskom and Transnet.
Fourth, the DST has begun to design long-term, realistic, and sustainable technology and innovation roadmaps that will guide our investment decisions, support human capital development and build the required government-industry partnerships that are required.
To summarise: in the DST our two key drivers are to build a knowledge-intensive economy and to build one that is sustainable.
My second comment is that we can both create jobs and cut carbon emissions. The green economy offers a double dividend more low-carbon jobs and less carbon emissions.
Government has set a target of cutting unemployment by half between 2004 and 2014. This means that South Africa needs to create 700,000 jobs a year, according to the Human Sciences Research Council (HSRC’s) Miriam Altman. Her estimate is that the market could create 250,000 jobs a year without special interventions. The real problem lies in youth unemployment, which is very high. Apart from the boost from the expanded public works programme, and the planned youth subsidy, we anticipate that green growth can provide a third string to our strategy for halving unemployment.
It’s clear that high-tech innovations will help employment grow over the long term, as new technology spreads throughout the economy and transforms other, larger sectors. But it is also clear that the clean-technology business by itself doesn’t employ many people at the moment, but it is what could happen in the future, that we should focus upon.
Existing jobs will need to be redesigned and workers skilled or re-skilled with green skills.
I think it’s important to leverage support from international agencies and organisations, as the Department of Environmental Affairs has successfully done with the clean technology fund.
The International Labour Organisation has designed and funded a green jobs programme that is being implemented in low and middle-income countries all around the world. We should also be part of the programme.
My third comment is that a better broadband network for accessing the internet is the backbone for a green economy.
We need to become more energy efficient at home and at work. A better broadband network facilitates teleconferencing and tele-health services in the university sector; University of KwaZulu-Natal (UKZN) has led the way.
A better broadband network will reduce the number of kilometres that people travel, making us all more relaxed.
A better broadband network is the key to a smart grid or a smarter power grid.
However, we must be able to measure the impact of a smart grid on our energy consumption.
We know that the private sector is investing huge sums of money in both wireless and fixed broadband. We know that government can do more to set standards and to encourage innovation in those areas that the private sector either won’t or can’t go.
In the DST, we have an IT research strategy with a budget and Meraka as a standard bearer, but is there more that government needs to do?
A broadband strategy is about to be released. As part of the ministerial committee on broadband, I have had the opportunity to be briefed on the recently announced Indian and the United States (US) broadband strategies. In my view there is much more to be done in terms of government incentives.
My fourth comment is that we need a specific plan for expanding our capacity in renewable energy.
South Africa has a 2013 renewable-energy target of 10 000 GWh.
In order to reach this renewable energy target, South Africa needs to invest more aggressively in renewable energy research and development.
Even though the DST has handed over its energy research unit to the Department of Energy, the DST still pursues its energy security r&d through the CSIR and various centres of competence at universities and research institutes.
We need a renewable-energy policy. According to the World Council for Renewable Energy, fewer than 10 countries have adequate renewable energy policies. I think South Africa should join the group that has an adequate renewable energy policy.
Only last week the Global Wind Energy Council pointed out that Africa was lagging behind the world in the development of wind energy and that South Africa with 10 MW was well behind Egypt with 400 MW in terms of capacity – and therefore missing out on billions from clean-energy projects.
We need foresight studies. We need to know how to expand our current capacity and what we want it to be in three years time. We need to know how much to invest to be able to reach that capacity.
For example, according to the Danish wind industry association’s annual statistics, the Danish wind industry employs 28,400 people and contributes an annual Euro 5.7 billion to the economy. Take another example. According to Germany’s environment ministry, there were 250,000 people working for Germany’s renewable energies industry in 2007 (up from 160,000 in 2004).
South Africa has a profile in the renewable energy industry, coming in at number 19 in terms of investment in this sector last year.
The wind farms are in the coastal provinces, while the solar energy parks are being built in the inland provinces.
You can now buy green electricity (or rather green electricity certificates) from the Cape Town council. Much of that green electricity comes from the Darling Wind Farm, a project that began in 2006, jointly funded by the Danish government through DANIDA, the then Department of Minerals and Energy and the Development Bank of Southern Africa (DBSA).
Renewable energy projects can make an impact on our use of electricity. It’s important for government to direct more time and resources to this aspect of green economy.
More attention should also be given to the promotion of r&d in renewable energy projects. The work of the CSIR and various universities provides a useful platform for developing innovative approaches and technologies.
At the heart of a green economy or a green growth strategy there should be ambitious targets for boosting electricity generation through renewable energy technologies.
Some of you will have seen that recently China overtook the US in terms of its investment in renewable energy. Some of you will know that the green component of South Korea’s stimulus package is over 75 percent. Many countries have identified green opportunities as sources for improved economic growth.
I hope that this summit will indicate what contribution government needs to make to support the renewable energy sector.
In closing, I would like acknowledge the immense work that is taking place across the national innovation system. These efforts will play a significant role in supporting the development of a green economy.
Issued by: Department of Science and Technology
18 May 2010
Source: Department of Science and Technology (http://www.dst.gov.za/)
