Green Economy Journal Issue 43 by GreenEconomyMedia

journal

ISSUE 43 | 2020

Economy G

ENVIRONMENT: Is Covid-19 a salvo from Mother Nature? INVESTMENT: Can ESG be the panacea for sustainable capital deployment? TRANSPORT: Repurposed EV batteries a boon for stational energy storage ENERGY: Policy clarity puts the wind back in the sails of SA wind energy sector

Large Capacity Energy Storage NGK’s Sodium Sulphur (NaS) Utility Battery is quite simply the best choice worldwide for large-capacity energy storage. NAS batteries are large-capacity 6-hour energy batteries with multiple power grid applications. Superior safety, function and performance made possible by decades of data monitoring from multiple operational installations across the world. • • • • • •

Long life Ultra-deep cycle Hot location resilient Super-efficient Low maintenance 3rd party tested and certified by Rhineland, Germany • Manufacturer’s guarantee Manufactured by NGK Japan using cutting edge ceramic manufacturing techniques, in partnership with BASF Germany. In excess of 17 years of proven commercial operation.

APPLICATIONS GRID SOLUTIONS Peak Demand Management / Capacity Investment deferral RENEWABLES Renewables / Power plants CONSUMERS Industrial / Commercial & residential MICROGRIDS Islands / Remote grids and microgrids

Learn more now contact South Africa agents at: info@altum.energy

www.altum.energy

Economy ISSUE 43 | 2020

ontent

journal

04 NEWS & SNIPPETS 06 THOUGHT LEADERSHIP

The destruction of nature has increased human exposure to the movement of deadly pathogens

ENERGY

Energy management is fundamental to the economic recovery from the impact of Covid-19

INFRASTRUCTURE

Celebrating 13 years of the Green Building Council of South Africa

AIR

FINANCE

The National Metrology Institute of South Africa and their significant work in the management and control of volatile organic compounds

What role does private capital play in the achievement of green economy outcomes?

24 TRANSPORT

Creating a circular economy for electric vehicle batteries

28 FOOD SECURITY

The relevancy of the UN Food and Agriculture Organisation in the face of global scourges

30 CUSTOMER

Sustainable practices are crucial for food producers

33 WATER

The Gamtoos Irrigation Board has been working hard to ensure that communities have water supply

36 OPINION

Eskom’s RMPPP – Is there cause for concern?

38 ENERGY

Government policy signals a reawakening for the SA wind industry

28 1

Economy

PUBLISHER’S NOTE

Could Joe Biden’s election victory spark a new green epoch?

Enjoy the read and please share your thoughts.

journal

PUBLISHER: Gordon Brown gordon@greeneconomy.media ASSOCIATE PUBLISHER: Danielle Solomons danielle@greeneconomy.media CONSULTING EDITOR: Alexis Knipe alexis@greeneconomy.media

ASSOCIATE EDITOR: Songo Didiza

LAYOUT AND DESIGN: CDC Design

PROJECT MANAGER: Munya Jani

SALES: Vania Reyneke Gerard Jeffcote

WEBSITE: www.greeneconomy.media

GENERAL ENQUIRIES: info@greeneconomy.media

ADVERTISING ENQUIRIES:

danielle@greeneconomy.media

REG NUMBER: 2005/003854/07

VAT NUMBER: 4750243448

ISSN NUMBER: 2410-6453

PUBLICATION DATE: November 2020

www.greeneconomy.media

Economy G

journal

ISSUE 43 | 2020

The global reaction to the Covid-19 pandemic has completely changed the long-standing perception that it is never acceptable to stall or hinder economic activity, to implement externally motivated change, even when such change is positive for society and the environment. When countries, including South Africa, basically flipped the off switch on the economy in the interests of public health, they changed the game forever, opting to save lives over saving income and jobs. And now that we have a stall – is this not the perfect opportunity to re-set the economy on a trajectory that will yield not only rapid short-term recovery but also one that realigns the economy with positive social and environmental targets? Such a reset will reduce the risk of us having to experience a hard shut down ever again. Covid-19 is a health crisis, and so is climate change, so is the ongoing destruction of biodiversity and extinction of species, so is the explosion of plastic waste in the biosphere, and we need to address all crises with the same level of urgency and importance. If not more so. We have the perfect opportunity and the perfect rationale to act now, and I for one am extremely excited, perhaps for the first time in several years, as President Ramaphosa moves to reignite the economy under the theme of sustainable infrastructure investment. Add to this, the globally significant election of Joe Biden, President-Elect of the USA, and we stand at the dawn of what could emerge as the most important period of economic transformation in our short history, akin to the industrial revolution, only this time with human ingenuity being harnessed, not just to produce the best products and outcomes but those that are also the most socially and economically advantageous. In this edition, we touch on this theme in several ways, from highlighting the immense value of energy efficiency to exploring the repurposing of used EV batteries, to the value to the country of our water exports, food security and the collaborative efforts of each segment of the green economy.

PUBLISHER GreenEconomy.Media

ENVIRONMENT: Is Covid-19 a salvo from Mother Nature?

All Rights Reserved. No part of this publication may be reproduced or transmitted in any way or in any form without the prior written permission of the Publisher. The opinions expressed herein are not necessarily those of the Publisher or the Editor. All editorial and advertising contributions are accepted on the understanding that the contributor either owns or has obtained all necessary copyrights and permissions. The Publisher does not endorse any claims made in the publication by or on behalf of any organisations or products. Please address any concerns in this regard to the Publisher.

INVESTMENT: Can ESG be the panacea for sustainable capital deployment? TRANSPORT: Repurposed EV batteries a boon for stational energy storage ENERGY: Policy clarity puts the wind back in the sails of SA wind energy sector

YOU SEE USED BOTTLES. COLLECTORS SEE VALUE.

Plastic bottles are not trash.

18.2 BILLION PET plastic bottles collected for recycling

R7.7 BILLION injected into South Africaâ&#x20AC;&#x2122;s economy

65 900

income opportunities created** ** 2019 specifically

1905356_FP_E

Recycling PET plastic bottles creates over 60 000 income opportunities every year in South Africa. Many of these are reclaimers, who helped divert upwards of 95 000 tonnes of PET plastic bottles from landfill in 2019. The used bottles they collect are recycled, ensuring that they become bottles yet again. This creates yet more jobs in the process, contributing positively to our countryâ&#x20AC;&#x2122;s GDP while eliminating the chance that they end up harming the environment. Recycling ensures that a circular economy is established where the value of plastic bottles continues indefinitely.

NEWS & SNIPPETS

INTEGRATED INNOVATION

The government has gazetted 50 integrated projects valued at R340 billion as part of South Africa’s recovery plan. Central to the strategy is reliable and affordable energy. The National Department of Mineral Resources and Energy aims to re-introduce its long-term IRPs to deliver 16 313MW from a mix of energy sources. One of the first announcements of the strategic human settlements is the planned R30-billion Mega City infrastructure development , near Tshwane. It is the outcome of a public-private partnership between residential real estate developer Balwin Properties, the Gauteng provincial government, and City of Tshwane. The development is being pursued in line with green building principles as well as enforcement of the National Energy Efficiency Building Standard, SANS 10400-XA, and will incorporate green building concepts guided by EDGE. An innovation of the International Finance Corporation (IFC), EDGE (Excellence in Design for Greater Efficiencies) is a green building certification that gives property owners the assurance that their properties are developed to be resource efficient.

INVESTING IN THE LOW-CARBON TRANSITION IN A VOLATILE WORLD The world is only investing around 20% of the US$2-3 trillion needed annually to decarbonise the global economy. Because governments and private equity funds can’t make up the shortfall by themselves, listed companies must spend significantly more on evolving to a lower-carbon model. Investors play a valuable role by engaging with listed businesses, as shareholders, and accelerating spending to transition the global economy. A low-carbon future and decarbonisation will fuel growth for businesses along the supply chains in each of those pathways: • Moving away from fossil fuels towards renewable energy • Increased electrification, including an overhaul of ground transportation, with more autonomous and efficient fleets, and moving away from internal combustion engines to self-driving electric vehicles

• R esource efficiency and higher standards of productivity in domestic and industrial processes, as well as in buildings and appliances The universe of decarbonisation-exposed companies is hugely diverse and spread across many sectors. Current market conditions are tough and a careful approach to building a portfolio is essential. McKinsey attests that Covid-19 and climate change are risk multipliers that exacerbate existing vulnerabilities in the economy. Ninety One Global Environment Fund motivates for an active and selective approach to investing in the decarbonisation growth opportunity – one that focuses on quality businesses with competitive advantages and formidable market positions. Deirdre Cooper: co-portfolio manager, Ninety One Global Environment Fund

LOSS OF POWER

120 000 jobs at South African coal mines and ageing power plants are under threat in the transition to a clean energy nation. The transition could threaten economic activity in four municipalities with a population of more than 2.3-million people, said Muhammed Patel, an economist at Trade and Industrial Policy Strategies (TIPS). “It is not a shift to renewable energy which will lead to job losses but a failure to deal with the potential impacts of climate change on the economy,” said Gaylor Montmasson-Clair, senior economist at TIPS. “A move to renewable energy forms part of several mechanisms to mitigate the impacts of climate change on the coal value chain.”

SANEDI BIDS FAREWELL TO SACCCS

SANEDI has long been host to a successful initiative that seeks to see South Africa’s carbon footprint minimised through the capture and storage of carbon dioxide emissions. Through the South African Centre for Carbon Capture and Storage (SACCCS), SANEDI has been supporting the country’s efforts to be more environmentally responsible. In a new development, considering the geological aspects involved in this climate change solution, SACCCS has been transferred to the Council for Geoscience (CGS), which will see further success of this initiative in the country. “South Africa is reliant on fossil fuels for most of its primary energy supply,” explains SANEDI GM for cleaner fossil fuel use and head of SACCCS, Dr Tony Surridge [pictured left]. “This has led to an approximate 400Mt of CO2 emissions per year. Notwithstanding the recent advances made in renewable energies, it is evident that fossil fuels will remain the main contributor to South Africa’s energy economy for some decades to come. Until nuclear and renewables become more dominant in the national energy supply, CCS is a critical measure to mitigate our carbon footprint and to facilitate a just transition.”

NEWS & SNIPPETS

SUSTAINABLE FUTURE: NEAR POSSIBLE

The 2020 GBCSA Annual Awards winners were announced at the virtual 13th Green Building Convention. Old Mutual Mutualpark in Cape Town [Six-star, Green Star – Existing Building Performance v1 rating] was the highest-rated building winner. Congratulations to the project owner, Old Mutual and AP, Zoë Rushin (Old Mutual). The runner-up was FormFunc Head Office, [pictured below] Johannesburg [Six-star, Green Star – Interiors v1 rating]. Terramanzi was the AP and the project owner was FormFunc.

The GBCSA celebrated reaching the 600-mark in Green Star certifications at the event. “This milestone is indicative of the growing momentum of green building in South Africa and a commercial property sector that is committed to sustainability,” announced GBCSA CEO Lisa Reynolds.

IMPACT

Official publication of the Green Building Council of South Africa

0.8

THE CONVENTION ISSUE 2020

NEAR POSSIBLE

MAPPING THE PATH TO A SUSTAINABLE FUTURE

CHARGING BATTERY TECHNOLOGY According to a report by the International Energy Agency, renewable energy will make up almost half of sub-Saharan Africa’s power generation growth by 2040. Improving access to reliable and sustainable energy is critical for Africa’s socio-economic development, says Daniel Goldstuck, head of energy storage services, SOLA Group [pictured right]. One of the biggest challenges that utilities face is when the electricity system cannot carry enough energy to meet consumer demands or cannot distribute excess energy across constrained networks. “The integration of bulk energy storage into an electricity grid can help utilities mitigate costs and reduce the chance of blackouts, particularly during periods of high demand or intermittency, which may eventually be a concern with mass integration of solar and wind power.” Utilities are also making use of bulk energy storage to reduce costs. The provision of large-scale energy storage on-site prevents the necessity of building or expanding large transmission lines from areas where electricity is generated, enabling power to be dispatched consistently when needed. Besides grid stability and cost reductions, energy storage provides an essential technology intervention in African countries where grid access might be limited or weak. In the current energy storage market, lithium-ion batteries dominate, largely driven by the uptake of electric vehicles. But lithium-ion batteries are now emerging as a suitable technology for stationary energy storage with improved round-trip efficiency, cycle life, decreased storage capacity degradation, and black-start capability to restart grids that have experienced outages. New technologies that are expanding the market include further electrochemical energy storage systems, such as flow batteries and some non-lithium battery chemistries with improved longduration capabilities. Flow batteries, circulate a liquid electrolyte through stacks of electrochemical cells and promise 10-hour durations, thousands of cycles, and minimal degradation. Storage benefits all nodes of the network as a transmission asset: within a distribution substation yard to defer power line construction, or behind the meter within a network to provide multiple stacked and synergistic services to both the end customer and distribution network service provider.

AFRICA: MINORS ARE MAJORITY

The youth segment accounts for 65% of Africa’s population, providing the continent with a significant demographic advantage, Egypt Minister of Planning and Economic Development, Hala El-Said, revealed in a recent address. She said that Africa has great economic and human potential, alongside the continent’s distinct geographical location and many natural and human resources. All these resources combined requires the integration of the continent’s countries to maximise benefits and put them on the path to sustainable development. The minister added that Africa is a forerunner in the international efforts on sustainable development, and this was evident when in 2013 African countries laid the foundation for Africa’s Agenda 2063. The agenda was adopted by the African Union (AU) as a longterm strategy that pushes comprehensive economic and social development for the entire continent during the next 50 years. Source: Egypt Today

SPECIAL +IMPACT REPORT Gain international insight and read the Near Possible* feature. in GBCSA’s official publication, +Impact Magazine. The 2020 GBCSA Convention speakers share their astute perspectives and global thought on how to map a path to a sustainable built future. +Impact magazine is published by

* Click on +Impact cover and you will find the Special Report on page 20.

THOUGHT LEADERSHIP

LEAVE PANGOLINS the heck alone BY LLEWELLYN VAN WYK, B.ARCH; MSC. (APPLIED), URBAN ANALYST

“Don’t it always seem to go That you don’t know what you’ve got ‘til its gone They paved paradise And put up a parking lot.” Big Yellow Taxi by Joni Mitchell, 1970

n additional pleasure to watching a movie with my son is the thoughtful, and usually, animated discussion that follows on the drive home. That did not happen with Blade Runner 2049. That late-night drive home was unusually quiet. I could not tell whether the silence was caused by the bittersweet narrative or the dark imagery. I realised that it was neither: the silence was caused by the realisation that those images were not sci-fi – I had seen them before, many times, in actual cities. Dark, colourless urban streetscapes; the night sky dominated

by bright neon signs; advertising boards selling their wares through the sexualisation of women; mountainous waste disposal sites; thick orange skies saturated with pollutants; the displacement of nature – these are all familiar urban images. During the film, I became more and more desperate for a sign – any sign – that some semblance of nature still survived somewhere. At one point in the movie, there is a flash of the yellow and green of a dying flower against a ghostly-grey tree only kept standing with the help of stabilising cables.

THOUGHT LEADERSHIP

Then, suddenly, at the midpoint of the film, there is this green explosion on the screen, and you find yourself in the middle of a forest. My relief that there was still some nature left was enormous. But it is short-lived: the forest is no more than a recreation of a memory. Tom van der Linden, in a commentary about the film titled “In search of the distinctly human: the philosophy of Blade Runner 2049”, observes that, in the movie, “ecosystems have collapsed. Green fields turned to dirt, metal, and plastic. Trees are but a distant memory. A long time ago, man lost his spiritual connection to nature, replaced it with a physical one. And now, finally, she has been conquered. Reduced to her basic elements, the last artifacts of her existence.”1 In this “ecology without nature”, as he puts it, we are placing ever more distance between ourselves and the rest of nature. With the current emergence of the coronavirus, there is an increased focus on how the destruction or conquering of nature creates

With the current emergence of the coronavirus, there is an increased focus on how the destruction or conquering of nature creates conditions for new zoonotic illnesses to spread.

THOUGHT LEADERSHIP conditions for new zoonotic illnesses to spread. As Kate Jones, Chair of Ecology at University College London has noted, pandemics are now “a hidden cost of human economic development… We are creating habitats where viruses are transmitted more easily, and then we are surprised that we have new ones.”2

The state of the environment, disease, and viruses Many natural scientists are emphasising the correlation between ecological degradation and disease outbreaks. The UN’s environment chief, Inger Andersen, pleads that “nature is sending us a message with the coronavirus pandemic and the ongoing climate crisis.”3 Essentially humanity is placing too many pressures on the natural environment with damaging consequences. Other scientists too suggest that the Covid-19 outbreak is a “clear warning shot”, given that far more deadly diseases exist in wildlife, and that today’s civilisation was “playing with fire”.4 They note that it is almost always human behaviour that causes diseases to spill over into humans. As Quammen argues, “Our relationship with the rest of the natural world, which is consumptive, and intrusive, and disruptive, is at the

Covid-19 and climate breakdown are interconnected crises. They are the unintended consequences of a tradition of colonial expansion, conquest, and resource extraction on the back of fossil fuel-driven industrial growth.

THOUGHT LEADERSHIP

heart of the matter. Those things shake loose viruses from their natural hosts. All these wild animals carry their unique viruses. When we go into a tropical forest with its great diversity, and we start cutting down trees and capturing animals or killing animals for food, then we offer those viruses the opportunity to become our viruses, to jump into us and find a new host, a much more abundant host. And when a virus moves from an infected animal into a human, it’s won the sweepstakes. It can now spread around the world and become one of the world’s most successful viruses, which this coronavirus now is.”5 Covid-19 and climate breakdown are interconnected crises. They are the unintended consequences of a tradition of colonial expansion, conquest, and resource extraction on the back of fossil fuel-driven industrial growth. The continued depletion of natural resources has, in turn, put pressure on the world’s most fragile ecosystems, and we now experiencing an extreme biodiversity crisis in which over a million species of plants, insects, and other animals are on the brink of extinction, while other species, stressed by displacement, are increasingly brought into contact with expanding areas of human habitation and agriculture. This encroachment on wilderness space has increased human exposure to the movement of pathogens from animal hosts, previously contained within wild ecosystems. “Preserving intact ecosystems and biodiversity will help us reduce the prevalence of some of these diseases. So the way we farm, the way we use the soils, the way we protect coastal ecosystems, and the way we treat our forests will either wreck the future or help us live longer,”6 Andersen argues. “We know in the late 1990s in Malaysia with the outbreak of Nipah virus, it is believed that the virus was a result of forest fires, deforestation, and drought which had caused fruit bats, the natural carriers of the virus, to move from the forests into the peat farms. It infected the farmers, which

infected other humans, and that led to the spread of disease.” Biodiversity loss is a significant driver in the emergence of some of these viruses. Large-scale deforestation, habitat degradation, and fragmentation, agriculture intensification, our food system, trade-in species and plants, anthropogenic climate change – all these are drivers of biodiversity loss and drivers of new diseases,” he concludes. A study, published in the journal Proceedings of the Royal Society B, agrees that the underlying cause of the present pandemic is likely to be increased human contact with wildlife. Scientists from Australia and the US traced which animals were most likely to share pathogens with humans taking 142 viruses known to have been transmitted from animals to humans over many years and matching them to the IUCN’s red list of threatened species. They found that domesticated animals like cattle, sheep, dogs, and goats shared the highest number of viruses with humans, with eight times

Agriculture and the food and beverage industries are the secondand third-largest sectors most dependent on nature, after the construction industry.

THOUGHT LEADERSHIP

more animal-borne viruses than wild mammal species. Wild animals that have adapted well to human-dominated environments also share more viruses with people. Rodents, bats, and primates – which often live among people, and close to houses and farms – together were implicated as hosts for nearly 75% of all viruses7. However, the spillover risk was highest from threatened and endangered wild animals whose populations had declined largely due to hunting, wildlife trade, and loss of habitat. Its noteworthy that every pandemic-threatening new virus that we have seen emerge in recent decades – avian flu, SARS, MERS, Zika and Ebola – has developed in this way. The opportunities currently existing for pathogens to pass from wild and domestic animals to people is unprecedented.8 The continued erosion of ecosystems is forcing uncomfortable proximity to animals and plants that harbour diseases that can jump to humans.

The state of the environment and food supply Not only are we dependent on nature for our health, we also overlook the contribution of nature and its ecosystem services in our food production systems. Our current rate of biodiversity loss is having a substantial impact on what we eat and how we feed the world’s populations. And this impact is set to increase. As reported by the World Economic Forum, research undertaken by them together with PWC, $44 trillion of economic value generation – more than half of the world’s total GDP – is moderately or

Biodiversity loss is a significant driver in the emergence of some of these viruses.

THOUGHT LEADERSHIP Conclusion

The continued erosion of ecosystems is forcing uncomfortable proximity to animals and plants that harbour diseases that can jump to humans.

highly dependent on nature and its services, and therefore exposed to risks from nature loss. Agriculture and the food and beverage industries are the second- and third-largest sectors most dependent on nature, after the construction industry. Climate change, soil erosion, pollinators extinction, and deforestation are all threatening food supplies. The decline of insects and other animals that pollinate crops is also impacting agriculture production. More than three-quarters of the world’s food crops rely at least partially on pollination. In other words, global crop production with an annual market value of between $235 billion and $577 billion is at risk. Outbreaks of invasive pests and diseases are another common cause of nature loss that threatens the survival of commercially important crop species with low genetic diversity. More than half of the world’s food comes from just three staples – rice, wheat, and maize – which already suffer annual losses of up to 16% of total production (valued at $96 billion) due to invasive species.9

One of the social constructs that needs reviewing is the notion that nature is in balance and will ultimately resolve all the above problems without human intervention. However, scientists have long abandoned the idea of there being a “balance of nature,” and favour more dynamic ecological frameworks. Both the delicate and stalwart interpretations of “balance” imply that nature should be left to its own devices; that human interference ought to be minimal. But as Matt Palmer an ecologist at Columbia University notes, the updated view is that “change is constant.”10 The importance of this paradigm is that as the new approach takes hold, conservation and management policies must also be adapted. “In some ways, it argues for a stronger hand in managing ecosystems or natural resources,” Palmer states. “It’s going to take human intervention.” To prevent further outbreaks both global warming and the destruction of the natural world must end, as both drive wildlife into contact with people. Covid-19 and nature are linked. So should be the recovery.

REFERENCES [links will redirect you to referenced article]

1 Van der Linder, T. 2018. “In search of the distinctly human: the philosophy of Blade Runner 2029.” YouTube channel www.patreon.com/likestoriesofold 2 Hill, K., 2020. “Biodiversity and pandemic disease (or how we came to know our world in 2020).” Available from: https://dirt.asla.org/2020/04/23/biodiversityand-pandemic-diseases-or-how-we-came-to-know-our-world-in-2020/. 3 Carrington, D. 2020. “Coronavirus: ‘Nature is sending us a message’ says UN environment chief”. Available from: https://amp-theguardian-com.cdn.ampproject. org/c/s/amp.theguardian.com/world/2020/mar/25/coronavirus-nature-is-sending-us-a-message-says-un-environment-chief. 4 Ibid. 5 Cohn, R. 2020. “Spillover warning: How we can prevent the next pandemic.” Available from: https://e360.yale.edu/features/spillover-warning-how-we-canprevent-the-next-pandemic-david-quammen. 6 Greenfield, P. 2020.“Ban wildlife markets to avert pandemics, says UN Biodiversity chief.”Available from: https://www.theguardian.com/world/2020/apr/06/banlive-animal-markets-pandemics-un-biodiversity-chief-age-of-extinction?utm_term=RWRpdG9yaWFsX0dyZWVuTGlnaHQtMjAwNDA4&utm_ source=esp&utm_medium=Email&CMP=greenlight_email&utm_campaign=GreenLight. 7 Vidal, J. 2020. “Human impact on wildlife to blame for spread of viruses, says study.” Available from: https://www.theguardian.com/environment/2020/apr/08/ human-impact-on-wildlife-to-blame-for-spread-of-viruses-says-study-aoe?utm_term=RWRpdG9yaWFsX0dyZWVuTGlnaHQtMjAwNDA4&utm_ source=esp&utm_medium=Email&CMP=greenlight_email&utm_campaign=GreenLight. 8 Carrington, D. 2020. “Coronavirus: ‘Nature is sending us a message’ says UN environment chief.” Available from: https://amp-theguardian-com.cdn.ampproject. org/c/s/amp.theguardian.com/world/2020/mar/25/coronavirus-nature-is-sending-us-a-message-says-un-environment-chief. 9 Ibid. 10 Root, T. 2020. “The ‘balance of nature’ is an enduring concept. But it’s wrong.” Available from: https://www.nationalgeographic.com/environment/globalwarming/balance-of-nature-explained/.

THA 29-2020

A WINNING PARTNERSHIP SA INDUSTRIAl ENERGY EFFICIENCY PROjECT The SA Industrial Energy Efficiency Project, run since 2010 by the National Cleaner Production Centre (NCPC-SA) and the United Nations Industrial Development organization (UNIDO), has won the global Association of Energy Engineers (AEE) International Energy Project of the Year Award for 2020. The AEE’s International Awards recognize achievements in energy around the world. “Energy Project of the Year: International” covers energy management projects developed and implemented outside the United States. Since itS inception in 2010, the iee project haS aSSiSted induStrial companieS in achieVinG the FolloWinG:

6.5 TWh

6.4 million tCO2e

ZAR 5.3 billion

energy saved

GHG mitigated

cumulative cost savings

For more information about the IEE Project visit: www.ncpc.co.za Email ncpc@csir.co.za to find out how to get help to transform your company’s energy use. The IEE Project is a national partnership initiative with international implementing and funding partners:

the dtic

mineral resources & energy

Department: Trade, Industry and Competition REPUBLIC OF SOUTH AFRICA

Department: Mineral Resources and Energy REPUBLIC OF SOUTH AFRICA

ENERGY

The continued significance of

ENERGY MANAGEMENT

According to the International Energy Agency, “Energy efficiency can play a vital role in economic recovery from the impact of the Covid-19 pandemic and more efficient use of energy could generate an untapped source of fuel, larger than fossil and renewable energy sources combined.” We asked Faith Mkhacwa of the NCPC-SA how South African businesses can make energy efficiency a strategic tool in their 2021 comeback.

outh African energy efficiency initiative, the South African Industrial Energy Efficiency (IEE) Project, recently won the highest international accolade for an energy programme – the International Energy Project of the Year, awarded in October 2020 by the global Association of Energy Engineers (AEE). The IEE Project, which has been led since 2010 by the National Cleaner Production Centre South Africa (NCPC-SA) and the United Nations Industrial Development Organisation (UNIDO), received the award in recognition of its efforts to transform the energy use patterns in South African industry, and mainstream energy management systems across economic sectors. Since its first implementation projects in 2011, the IEE Project team has assisted industrial companies to save 6 500GWh of energy, which translates roughly into the energy required to power 950 000 middleincome homes for a year. With energy generation being such a significant GHG contributor, and energy processes being what they are, these energy savings represent cost avoidance by the participating companies of R5.3 billion and GHG mitigation of 6.4 million tons over the past ten years. But why was this an international award-winning project? And how can this help South African business now? The answer lies in the holistic and integrated approach, based primarily on the concept and principles of energy management. According to Faith Mkhacwa, senior project manager of the IEE Project at the NCPC-SA, the Covid-19 “new reality” requires the strategic management of resources such as energy. “Having an energy efficiency

strategy will enable organisations to cut their energy bills by up to 40%, saving money and mitigating climate change,” she explains. Interactions with industry show that organisations are not always aware of the value of energy efficiency and often focus on investment into energy generation. “This is partly because energy efficiency is invisible – it represents energy not used, and companies do not see potential energy saving as an opportunity they should be investing in. Energy efficiency improvement will support recovery and reduce emissions, making this the perfect time to set higher targets for energy efficiency in industry and create incentives to enable organisations to act boldly.” The multi-party IEE Project is ready to assist in restoring the health of South African industry through energy efficiency. The project team works with and equips industry to tackle practical energy management. This is done though training industry professionals, both in companies and consultants, and partnering with every company that signs up. The IEE Project uses the methodologies aligned to international energy management standard ISO 50001, which drives continuous improvement and sustained energy savings. “It’s a marathon, not a sprint, and the growing savings numbers of the IEE Project are proof that it really works.” Energy management training is offered by the NCPC-SA, which has already trained in excess of 5 000 professionals at technical level and 200 men and women to be IEE experts. Many of the IEE training courses are currently being offered online, at no cost to delegates for the remainder of 2020. Energy efficiency can improve the economic competitiveness of countries and businesses, reduce greenhouse gas emissions and improve quality of life. The challenge, according to the IEA projections up to 2035, is that as much as two-thirds of the energy efficiency potential are likely to remain untapped. “The IEE Project would welcome the opportunity to work with and help organisations emerge from the Covid-19 downturn stronger and with a new resolve to contribute towards climate change mitigation,” concludes Faith. The IEE Project is currently its second phase, which runs until the end of 2021. Other IEE Project phase II partners include the Department of Trade, Industry and Competition, which funds the NCPC-SA, the Department of Energy and Mineral Resources and its agency, the South African National Energy Development Institute (SANEDI). For more information, contact ncpc@csir.co.za or visit www.ncpc.co.za to view case studies and free online tools.

INFRASTRUCTURE

Shifting the goalposts to level up

Green building BY LISA REYNOLDS, CEO, GBCSA*

During World Green Building Week in September 2020, Green Building Council South Africa ran an online webinar about South Africa’s green building heritage. It was the week of National Heritage Day, so the timing seemed apt to reflect on GBCSA’s past challenges and successes over the last 13 years since its inception in 2007.

e were joined by the team that spearheaded the first Green Star certification, awarded in 2009 to Nedbank Head Office Phase 2. The team included Xavier Huyberechts from GLH Architects, Howard Rauff from Nedbank, Marloes Reinink from Solid Green, and Alison Groves from WSP. It was a real trip down memory lane, and as always, remarkable to see what has been achieved considering the initial inertia and measured embrace to green building over the years. We have made significant strides that have contributed to transformation in the built environment. For the Nedbank Phase 2 project, the team persuaded Dulux to manufacture low-VOC paint locally, which converted the whole paint industry in the country. A black water treatment system was also considered for the Nedbank project, but the installation was unsuccessful. Nevertheless, this paved the way for the use of black water treatment systems, which have since been installed successfully for other green buildings. Since then, LED lighting and solar panels have also become mainstream and dramatically more affordable.

Lisa Reynolds, Chief Executive Officer, GBCSA

Over the last 13 years, important shifts have taken place on the economic side of building green. Developers are now understanding the benefits that come from spending more at the beginning of a building project, which leads to savings in the long run. Marloes commented that “resilience” has become a motivating factor over-and-above “building green”, because people, and businesses, want to survive the knock-on effects that come with more frequently-occurring uncertainties such as load shedding and drought. It’s about energy and water security, and also keeping people healthy and productive in buildings (something that Covid-19 has brought to the fore). Xavier Huyberechts emphasised that there has been a shift towards thinking more about operational efficiency. A building is not just a pretty thing to look at – it needs to have resilience built in from the start, and the industry is understanding that now. Something key that became evident through the webinar was that now a 4-Star-rated building is quite easy to attain and can be achieved with minimal to no additional premium. It has become commonplace – which

100th

First Green Star certifications in Africa awarded to One Airport Square in Ghana and FNB Freedom Plaza in Namibia

2015

First Green Star SA certification awarded to Nedbank Head Office Phase 2

2014

Green Building Council South Africa started

2009

2007

Green Star certifications

The first EDGE project was registered

2016

building certification, with a 5-Star Green Star SA Existing Building Performance rating, awarded to Kirstenhof Office Park

200 certifications reached

INFRASTRUCTURE

78 Corlett Drive in Melrose North

No.1 Mutual Place in Sandton

is great – but where is the challenge? This is an indication that it is time to shift the goalposts and create more ambitious targets. I see that the role of the Green Building Council South Africa (GBCSA) is to always be on the aspirational side of the market. When we become the norm, we must pull ahead. In 2009, a Green Star rating was unheard of, so we need to find the “next big thing” that the building industry can boldly strive towards. To align with the world’s targets of achieving Net Zero for all buildings by 2050, we need to shift the status quo significantly. The World Green Building Council’s Cristina Gamboa says that buildings need to move away from being “consumers” and become “prosumers”. Self-sufficiency, netpositive, and regenerative design is certainly the direction we need to go, to achieve a sustainable world in which people and planet thrive: net zero is the next step on this journey. We are currently working with the Australia Green Building Council to conceptualise a new building rating tool, and this is likely to include more ambitious net-zero goals. We will be drafting a single tool that encompasses all types of buildings, to replace the existing individual ones, and 6-Star ratings in future will likely require net-zero carbon as a minimum (which is similar to the Australian tool). Net-zero carbon is easier

to achieve than net-zero water, waste and ecology and it is the one that makes a massive difference in climate change mitigation, so I think it’s a good goalpost to aim for. The new building rating tool will hopefully be ready for launch at Convention in 2021. Next year, GBCSA will also be aiming to launch our new Residential rating tool for existing homes. This will provide a user-friendly, online platform for homeowners to get on board with green building. When I reflect on some of my favourite green building projects over the years, one of the projects which stands out is a community housing project called Belhar Gardens, which received an EDGE rating. Over a year, the occupants save more than the equivalent of one month’s rent due to lower operational costs. It’s something that makes a really big difference for communities and for individuals, which is especially important during these challenging financial times. For me, it’s a reflection of the shift from sustainability and green building being more of a technology-focused and theoretical exercise, to one that has become more human-focused. Finally, we are starting to understand that green buildings are desirable not only for financial reasons but also because they allow people to thrive within their walls.

Buildings need to move away from being “consumers” and become “prosumers”.

300

The pilot Net Zero Tool was introduced and the first Net Zero certified projects were Greenfields Industrial Park, The Estuaries Plaza, Two Dam Sustainable, and Vodafone Site Solution Centre

500 certifications reached

2020

certifications reached including Green Star, EWP, EDGE and Net Zero

2019

Sustainable Precincts tool launched

400

2018

2017

First post-construction EDGE certification awarded to Fourleaf Estate

600 certifications reached, and counting…

2021 (aspirational)

certifications reached

Launch version 2 of the new build rating tool and residential rating tool

AIR

Volatile organic compounds BY NMISA

In South Africa, outdoor and indoor air pollution continues to be perceived as a serious problem, with emissions for sulphur dioxide, particulate matter, nitrogen dioxide, nitrogen oxides, ozone, benzene and VOCs, and the corresponding concentrations, a cause of concern.

ir quality in various areas of the country is affected by pollutants emitted by numerous sources. These sources include power generation activities, industrial processes, waste disposal, transportation (private and public vehicles), biomass burning, domestic fuel burning, landfill sites, wastewater treatment and agriculture. Volatile organic compounds (VOCs) are known for their adverse environmental and health impact. These compounds act as stratospheric

ozone precursors, contributing negatively to climate change and have been stated by World Health Organisation (WHO) to be carcinogens. VOCs have also been monitored globally by World Meteorological Organisation (WMO) /Global Atmospheric Watch (GAW) stations, to understand the lifespan, chemistry, concentration and have international comparability of measurements. There is still ambiguity around VOCs due to a wide range of components falling under this category. Exposure and reactivity of these pollutants tend to be more composition specific.

AIR

Volatile organic compounds (VOCs) are organic chemicals that have a high vapor pressure at ordinary room temperature. Their high vapor pressure results from a low boiling point, which causes large numbers of molecules to evaporate or sublimate from the liquid or solid form of the compound and enter the surrounding air, a trait known as volatility. For example, formaldehyde, which evaporates from paint and releases from materials like resin, has a boiling point of only –19 °C (–2 °F).

In South Africa, Benzene, Toluene, Ethylbenzene, and Xylenes (BTEX) are monitored in various air monitoring stations across the country and are supported by the Department of Environmental Affairs (DEA). Academic institutes and the air monitoring industry are focused on a wide range of these harmful substances. To support all science institutes, regulations with reliable measurement, NMISA’s Gas Analysis Laboratory championed a project of developing VOC reference standard gas mixtures in accordance with the National Environment Management Air Quality Act 2004, 39. The standards sub-groups are non-methane VOCs, hazardous air pollutants and BTEX, ranging from a high concentration to a lower concentration of nmol/mol levels. The reference gas mixtures are used in industry to calibrate instrumentation and harmonise measurement methods. To attain international recognition and comparability of measurement in VOCs, the Gas Analysis Laboratory participated in 5 nmol/mol BTEX needs to be defined in nitrogen CCQM K10, 100nmol/mol BTEX in Nitrogen AMPM-QM S14 interlaboratory comparison and 100 nmol/mol HAPs in nitrogen APMP-QM S12. The laboratory aims to establish new capabilities and resources to fully support the industry with their needs. This means constant development of low uncertainty standards for accurate measurements with traceability to the International System of Units (SI).

Volatile Organic Compounds, when combined with nitrogen oxides, react to form ground-level ozone (smog), which contributes to climate change. Gasoline, Benzene, Formaldehyde, Toluene, Xylene, Styrene, and Perchloroethylene (or Tetrachloroethylene used in dry cleaning) are also rich sources of VOCs.

Store: https://store.nmisa.org/ Facebook: NMISouthAfrica Twitter: @NMISouthAfrica Instagram: @nmisouthafrica LinkedIn: National Metrology Institute of South Africa (NMISA) YouTube: National Metrology Institute of South Africa (NMISA)

www.nmisa.org

FINANCE

PRIVATE CAPITAL While some detractors have argued that ESG investing is simply a bull market phenomenon, increasingly more companies are beginning to integrate ESG strategies into their business models, indicating that the trend is here to stay. So, what role can private capital play in achieving green economy outcomes? BY DEAN ALBOROUGH*

he increasing uptake of environmental, social and governance (ESG) principles represents a paradigm shift in the investment landscape. Through the pandemic, ESG funds have demonstrated equal, if not higher returns and better downside protection. At the beginning of the pandemic, sustainable funds attracted record inflows in the first quarter amid market turmoil, and figures from the Investment Association reveal investors have pumped nearly $4bn into ethical funds in 2020 so far, significantly more than the $3.2bn recorded for the whole of 2019. Two critical roles include acting as a partner to governments and shifting the development trajectory. Private capital can partner with governments to identify and fill financing gaps in sectors where government budgets

are exceeded, with an ability to mobilise international capital. Private capital also acts on behalf of the end investor on the street, with investorsâ&#x20AC;&#x2122; expectations rapidly shifting away from the unsustainable development trajectory set by the industrial revolution, to a new sustainable, lowcarbon and socially inclusive development trajectory. The opportunity for private capital to play a significant role in Africa is immense, not least because the continent faces an annual funding gap of between $500 billion and $1.2 trillion to realise the UN Sustainable Development Goals. Less than 13% of impact investing capital is directed to Africa. This has paved the way for increasing private sector involvement in deploying capital to achieve ESG outcomes across the continent.

FINANCE

The opportunity for private capital to play a significant role in Africa is immense, not least because the continent faces an annual funding gap of between $500 billion and $1.2 trillion to realise the UN Sustainable Development Goals.

Take African Infrastructure Investment Managers’ (AIIM) IDEAS Managed Fund, launched in 1999, which invests in transport, housing, and renewable energy infrastructure in the SADC region. AIIM is a member of Old Mutual Alternative Investments (OMAI), and through its IDEAS Fund, has invested in 28 assets across South Africa’s renewables sector – including large scale solar power plants and wind farms. Together, these assets generate some 24.5% of the total clean energy on South Africa’s grid.

Beyond South Africa, AIIM has also recently acquired a minority stake in BBOXX, a next generation utility platform, providing affordable and reliable clean energy to off-grid communities. As a result of the transaction, BBOXX has since expanded to provide clean energy and other utility services to an additional 250 000 people in Rwanda, Kenya and Democratic Republic of Congo. The impact of such projects spearheaded by the private sector are significant. Over 600-million people in Africa lack access to electricity. High grid connection costs, coupled with an increasing need for power, make off-grid solar a compelling alternative for rural communities with unreliable grid access. Deploying private capital to plug the gap in energy generation helps stimulate economic development in rural and peri-urban communities by creating new markets through the entry point of electricity. Similar ESG principles are making their way onto the government agenda. President Ramaphosa’s recent economic recovery plan, announced on 15th October 2020, committed R1 trillion ($60 billion) in funding towards infrastructure investment over the next four years, including a major increase in energy generation, half of which he intends to generate from renewable sources. There are, however, many challenges in exporting ESG objectives across the continent. The reality is many African nations have not declared national contributions to emissions reductions, placing even greater value on the role of private capital in driving the ESG agenda forward. This

can only be achieved through rvival and sustainable growth. ves client satisfaction is critical to n organisation, Kgomo Engineering

uct-driven. ions, as opposed to being solely rovision of effective and efficient des assurance to its clients through n, Kgomo Engineering continuously ugh decisive leadership and inno-

rnmental developments. commercial, mining, residential and ovide complete designs for indusalists with vast industry experience engineers, as well as certified energy ploys professional project managers

baseline development • Energy and demand• Scoping (due-diligence) study of energy-saving impacts • Independent analysis and reporting

M&V

• Financial-model development and management • Project design, development • Renewable energies and enhancement • Revenue protection baseline development • Energy and demandcleaner productions • Resource efficiency and

• TLBs and excavators • Water tankers • Interlink side tippers • Tipper trucks

Plant hire

• Co- and tri-generation • Waste to energy • Biogas • Solar thermal • Solar PV

Renewable energies

systems (electrical and mechanical) • Installations and maintenance of (electrical and mechanical) • Conceptual and detailed designs • Feasibility studies and mechanical systems • Conditional assessments on electric • Utility bill analysis and verification

KGOMO KGOMO KGOMOENGINEERING ENGINEERING ENGINEERING resource management Energy and

KGOMO ENGINEERING

ons, with innovative pricing models. ally tailored engineering and energy fied and competent team, offering of collective experience by a highly Kgomo Kgomo Kgomo Engineering Engineering Engineering (Pty) (Pty) (Pty) Ltd Ltd isLtd is a 100% ais100% a 100% mo black Engineering provides 40-plus black black youth-owned, youth-owned, youth-owned, and and and dynamically dynamically dynamically Tiermanaged, 2managed, energy-services company, managed, engineering, engineering, engineering, procurement, procurement, procurement,

Sustaining Sustaining Sustaining power. power. power. Serving Serving Serving landscapes landscapes landscapes SUITE OF SERVICES

Engineering services

for the projects it engages in.

and management withpower. locals on an as-when-needed basislandscapes Sustaining Serving

construction construction construction and and and management management management company. company. company. The The firm The firm firm specialises specialises specialises in in measurement in measurement measurement and and us Engineering industries. (Pty) Ltd is a 100%and mo verification verification verification (M&V), (M&V), (M&V), energy energy energy management management management engineering services, spanning youth-owned, and dynamically and and and engineering engineering engineering services, services, services, spanning spanning spanning cation (M&V), energy management various various various industries. industries. industries. aged, engineering, procurement,

irm specialises in measurement and ruction and management company. AsAs a As Tier aand Tier a Tier 2 energy-services 2 energy-services 2 energy-services company, company, company, ruction management company. irm specialises in measurement and Kgomo Kgomo Kgomo Engineering Engineering Engineering provides provides provides 40-plus 40-plus 40-plus aged, engineering, procurement, cation (M&V), energy management years years years ofof collective of collective collective experience experience experience byby a by highly a highly a highly youth-owned, and dynamically engineering services, spanning qualified qualified qualified and and and competent competent competent team, team, team, offering offering offering mo (Pty) Ltd is a and 100% specially specially specially tailored tailored tailored engineering engineering engineering and and energy energy energy us Engineering industries.

employing employing employing highly highly highly skilled skilled skilled and and and competent competent competent • M&V • M&V • M&V plan plan plan development development development professionals professionals professionals who who who specialise specialise specialise inin providing in providing providing • Project • Project • Project performance performance performance and and and certification certification certification • 12 Stakeholder engagement Kgomo Engineering strives to partner • Section innovative innovative innovative and and and cost-effective cost-effective cost-effective solutions. solutions. solutions. • Section • Section 12 income 12 income income tax tax incentives tax incentives incentives

of the organisation. For this reason,

• Cost control

By By building By building building a sustainable aissustainable aembodied sustainable organisation organisation organisation Project Project management management management and management knowledge in the ethos Project employing highly skilled and competent • scheduling M&V plan development that that that seeks seeks seeks toto alleviate to alleviate alleviate the the generational the generational generational • Project • Project • Project scheduling scheduling and and and planning planning planning • Resource allocation poverty cycle, the transfer of skills and professionals who specialise in providing • allocation Project performance and certificati poverty poverty poverty cycle, cycle, cycle, the the transfer the transfer transfer ofof skills of skills skills and and and • Resource • Resource • Resource allocation allocation • Project scheduling and planning that seeksisto alleviate the generational knowledge knowledge knowledge is embodied embodied is embodied inin the in the ethos the ethos ethos and and management management innovative and cost-effective solutions. and •management Section 12 income tax incentives Project management Byof building a sustainable organisation of the of the organisation. the organisation. organisation. For For this For this reason, this reason, reason, • Cost • Cost • Cost control control control Kgomo Kgomo Kgomo Engineering Engineering Engineering strives strives strives toto partner to partner partner • Stakeholder • Stakeholder • Stakeholder engagement engagement engagement By building a sustainable organisation Project management with with with locals locals locals onon an on an as-when-needed an as-when-needed as-when-needed basis basis basis and and and management management •management Section 12 income tax incentives innovative and cost-effective solutions. that seeks to italleviate the generational • Project scheduling and planning for for the for the projects the projects projects it engages engages it engages in. in.in. • Project performance and certificati

professionals specialise providing poverty cycle, who the transfer ofin skills and Engineering • Resource allocation Engineering Engineering services services services • M&V plan development employing highly skilled and competent SUITE SUITE SUITE OF OF OF SERVICES SERVICES SERVICES • Utility • Utility bill bill analysis bill analysis analysis and and and verification verification verification knowledge is embodied in the ethos • Utility and management solutions, solutions, solutions, with with with innovative innovative innovative pricing pricing pricing models. models. models. of the organisation. For this reason, • Conditional • Conditional • Conditional assessments assessments assessments on on on electrical electrical • Cost control electrical and and and mechanical mechanical mechanical systems systems systems Energy Energy Energy and and and Tier 2 energy-services company, Kgomo Engineering strives to partner • Stakeholder engagement It It employs employs It employs professional professional professional project project project managers managers managers resource • Feasibility • Feasibility • Feasibility studies studies studies resource resource management management management mo and Engineering provides 40-plus with locals on an as-when-needed basis and management and and engineers, engineers, engineers, asas well as well well asas certified as certified certified energy energy energy • Resource • Conceptual • Conceptual • Conceptual and and and detailed detailed detailed designs designs designs • Resource • Resource efficiency efficiency efficiency and and and ofspecialists collective experience by a highly for the projects it engages in. specialists specialists with with with vast vast vast industry industry industry experience experience experience (electrical (electrical (electrical and and and mechanical) mechanical) mechanical) cleaner cleaner cleaner productions productions productions to provide to provide provide complete complete complete designs designs designs for for indusfor indusindus• Installations • Installations • Installations and and and maintenance maintenance maintenance ofof of • Energy • Energy • Energy and and and demanddemanddemandfiedtoand competent team, offering Engineering services trial, trial, trial, commercial, commercial, commercial, mining, mining, mining, residential residential residential and and SUITE systems systems systems (electrical (electrical and and and mechanical) mechanical) mechanical) baseline baseline baseline development development development ally tailored engineering and energyand OF SERVICES •(electrical Utility bill analysis and verification governmental governmental governmental developments. developments. developments. • Revenue • Revenue • Revenue protection protection protection ons, with innovative pricing models. • Conditional assessments on electric and and and enhancement enhancement enhancement Renewable Renewable Renewable energies energies energies and mechanical systems and Through Through Through decisive decisive decisive leadership leadership leadership and and and innoinnoinno•Energy Renewable • Renewable • Renewable energies energies energies • Solar • Solar • Solar PVPVPV ploys professional project managers • thermal Feasibility studies management vation, vation, vation, Kgomo Kgomo Kgomo Engineering Engineering Engineering continuously continuously continuously •resource Project • Project • Project design, design, design, development development development • Solar • Solar • Solar thermal thermal provides provides provides assurance assurance assurance to itsto its clients its clients clients through through through • and and and management management management • Biogas • Biogas • Biogas engineers, as well asto certified energy • Conceptual and detailed designs Resource efficiency and the the provision the provision provision of effective of effective effective and and and efficient efficient efficient • Financial-model •cleaner Financial-model • Financial-model development development development • Waste • Waste • Waste toto energy to energy energy and mechanical) alists with vastofindustry experience (electrical productions solutions, solutions, solutions, asas opposed as opposed opposed toto being to being being solely solely solely • Co• Co• and Coand and tri-generation tri-generation tri-generation ovide complete designs for indus• Installations and maintenance of • Energy and demandproduct-driven. product-driven. product-driven. M&V M&V M&V commercial, mining, residential and systems (electrical and mechanical) baseline development • Independent • Independent • Independent analysis analysis analysis and and and reporting reporting reporting Plant Plant Plant hire hire hire rnmental developments. • of Revenue protection AsAs an As an organisation, an organisation, organisation, Kgomo Kgomo Kgomo Engineering Engineering Engineering of energy-saving of energy-saving energy-saving impacts impacts impacts • Tipper • Tipper • Tipper trucks trucks trucks believes believes believes client client client satisfaction satisfaction satisfaction is is critical critical is critical toto to • Scoping •and Scoping • Scoping (due-diligence) (due-diligence) (due-diligence) study study study • Interlink • Interlink • Interlink side side side tippers tippers tippers energies enhancement Renewable its survival its survival survival and and and sustainable sustainable sustainable growth. growth. growth. •• Energy •Renewable Energy • Energy and and demandand demanddemand• Water • Water • Water tankers tankers ughitsdecisive leadership and innoenergies •tankers Solar PV That That That can can only can only only bebe achieved be achieved achieved through through through baseline baseline baseline development development development • TLBs • TLBs • TLBs and and and excavators excavators excavators n, Kgomo Engineering continuously • Project design, development • Solar thermal des assurance to its clients through and management • Biogas rovision of effective and efficient • Financial-model development • Waste to energy ions, as opposed to being solely • Co- and tri-generation uct-driven. M&V • Independent analysis and reporting Plant hire info@narekgomo.co.za info@narekgomo.co.za info@narekgomo.co.za | 082 | 082 | 652 082 652 6337 652 6337 6337 | Plot | Plot | Plot 25, 25, Second 25, Second Second Road, Road, Road, Hillcrest Hillcrest Hillcrest Agricultural Agricultural Agricultural Holdings, Holdings, Holdings, Putfontein, Putfontein, Putfontein, 1513 1513 1513 n organisation, Kgomo Engineering of energy-saving impacts • Tipper trucks ves client satisfaction is critical to • Scoping (due-diligence) study • Interlink side tippers rvival and sustainable growth. • Energy and demand• Water tankers

Sustaining power. Serving landscapes

KGOMO ENGINEERING

FINANCE

The reality is many African nations have not declared national contributions to emissions reductions, placing even greater value on the role of private capital in driving the ESG agenda forward.

extends to other areas of high carbon-emitting fuel sources. South Africa has historically anchored itself to a reliance on coal, which is expected to account for just under half of its energy mix by 2040. Zambia has a dependence on coal exports. Both countries face significant economic risks as the world transitions away from coal power generation.

Many investors have positions in fossil fuels that are difficult to move away from in the short or medium-term. We are now confronted with the challenge of how to transition from these assets in a swift and nonvolatile way, whilst also protecting the jobs and livelihoods of those who work within the industries. Fossil fuels are not simply limited to power generation, there is an entire supply chain at work – from exploration to transport and pipelines to port terminals. Despite the difficulties in driving ESG objectives, institutional investors across the globe acknowledge that ESG risk management is here to stay. Increasing calls to implement common reporting standards on ESG performance as a way of accurately measuring progress further this message. In many ways, Covid-19 has been the wake-up call some investors needed to realise the value of integrating ESG principles in their portfolios. As nations across Africa battle mounting debts, contractions in GDP and loan defaults, the role of the private sector in driving the ESG agenda forward is now more important than ever. The investing landscape is changing at an incredibly swift pace and CIO’s should be aware of these seismic shifts now, putting money to work with strong ESG risk management and identifying the evergrowing investment opportunities in green economy assets.

*Dean Alborough is Head of ESG at Old Mutual Alternative Investments.

Harnessing the power of ESG risk premia Socially responsible investing (SRI) has undergone a profound evolution since its origins in colonial America, where religious groups abstained from investing their endowment funds into anything associated with the slave trade. Centuries later, it transformed into mutual funds screening out investments that were directly or indirectly associated with gambling, alcohol and tobacco. SRI was further used as a tool to express the moral values of institutional investors and their support for historical movements. As a case in point, during the apartheid regime in South Africa, many global mutual funds screened out companies that were engaging in business in the country. At the dawn of the 21st century came a heightened global awareness of the myriad of acute challenges we face as a planet, ranging from climate change, socio-economic inequalities, and the rise of unjust and exploitative institutions. This heightened the awareness of the need to introduce responsible investing methodologies that were significantly more extensive and far-reaching than the traditional screening approach. The term Environmental, Social and Governance (ESG) investing was first coined by the United Nations Global Compact in 2004 and involved the systematic integration of these factors into the investment processes of financial institutions. ESG investing has since gathered significant momentum and continues to gain traction in line with the fundamental shift in investor perceptions as they recognise the material impact ESG factors can have on investment returns. Risk premia strategies have been used for decades in systematic investing as a method for harvesting excess returns. This is achieved by investing in factors that have been proven academically and in practice to provide the investor with a positive payoff for undertaking the risk associated with each factor. Commonly used risk premia include the value risk premium, which is the excess return derived from companies that are trading at a low price relative to their fundamental value; the momentum risk premium, which

favours stocks that have displayed a sustained positive return trajectory over a given period; and the market risk premium, which is the differential between the market yield and the risk-free rate of return. These factors have all been proven to yield higher long-term risk-adjusted returns. The overwhelming evidence confirms that using ESG factors in the portfolio construction and security selection process based on factor analysis and risk premia strategies allows investors to yield additional risk-adjusted returns. The logic that value-creating ESG-related practices contribute to company outperformance upholds the thesis. For instance, a well-managed company that adheres to environmental and social regulations is less likely to face litigation, the higher costs associated with the management and disposal of hazardous waste and elevated employee injury rates. ESG factors provide insight into the factors may provide better insight into the probability distribution of company returns in the same way as the traditional risk premia incorporated in classical asset pricing frameworks. Also, ESG factors are strong candidates for inclusion in long-term factor investing. They display strong explanatory power over a wide range of securities, offer a positive payoff over reasonably long horizons, have a significantly low correlation with other factors and, above all, they make intuitive and economic sense. In identifying ESG factors as risk premia, the systematic investor needs to move beyond traditional screening methodologies and policy implementation towards a rules-based, scalable and measurable ESG integration strategy. To do so requires practical, quantifiable metrics that can be readily integrated into an existing investment process, together with other strategies to construct a well-diversified portfolio. The last decade has seen ESG find a permanent place in everyday investing. Its rise in popularity has shown no signs of slowing down, with Bank of America forecasting a “tsunami of assets”, as much as $20 trillion, flowing into ESG funds in the US alone over the next two decades. Source: Prescient

PROTECTING NATURAL RESOURCES AND IMPROVING LIVES Sibanye-Stillwaterâ&#x20AC;&#x2122;s vision is to create superior value for all our stakeholders through responsible mining of our mineral resources. The company has crafted an Environmental, Social and Governance (ESG) strategy to define the principles and requirements to meet Sibanye-Stillwaterâ&#x20AC;&#x2122;s vision. The ESG Strategy content is guided by our voluntary subscriptions to:

Every year the issue of the environment and climate change looms ever larger over companies that wish to build a sustainable future in business. It is a problem unlikely to recede unless strong and decisive action is taken. At Sibanye-Stillwater, we have drawn up our own ESG strategy, inclusive of environmental management, with one of our core intents being to protect natural resources and improve

life. It is about sustainable use and sourcing through increased environmental consciousness, continual improvement and minimising environmental impact as part of a measured transition to a low carbon future. The Company is grappling with an environmental conundrum as our South African operations are supplied 93% of their energy needs in the form of coal-fired

Our mining improves lives | Visit www.sibanyestillwater.com

electricity at an annual cost of approximately R6.5bn. We are dependent on the national power utility, Eskom, which is struggling to provide affordable, reliable and low-carbon electricity. This means we have had to rethink our energy use and supply mix with a view to improving energy security, cost and addressing the issue of carbon-intensity.

ENVIRONMENT

SOCIAL

GOVERNANCE

OUR ENERGY AND DECARBONISATION STRATEGY HAS FOUR LEVERS: For a start, there is energy intelligence and active advocacy. Energy challenges, such as rising electricity cost and security of supply, cannot be addressed in isolation. Through the Energy Intensive Users Group of Southern Africa (EIUG), Sibanye-Stillwater, as one of 29 members, seeks to advocate for an enabling energy supply industry, inclusive of reliable supply at competitive prices with a just transition to a lower carbon future. The EIUG engages with the government, NERSA and Eskom, as well as working with other organisations such as Business Unity South Africa (BUSA) and the Minerals Council of South Africa. This first lever also focuses on internal advocacy, inclusive of policy, strategy and target setting. During target development, consideration to Sustainable Development Goal (SDG) 7, Affordable and Clean Energy, and SDG 13, Climate Action, which call for increasing the share of renewable energy in the energy mix by 2030, doubling the rate of improving energy efficiency and decarbonisation, will be taken into consideration. We will continue to drive our already established Science Based Target Initiative targeted at reducing the absolute Scope 1 and 2 GHG emissions in line with the level of decarbonisation required to keep global temperature increases below two degrees Celsius. The second lever is demand side management. Drawing guidance

from the ISO 50001 standard, the Energy and Decarbonisation Strategy will also drive improved energy and carbon management through the stringent target setting, technology deployment and real-time, predictive and prescriptive digital analytics. The appointment of energy service companies to assist with energy optimisation and productivity initiatives â&#x20AC;&#x201C; like the optimisation of water pumping, compressed air and refrigeration circuits has been instrumental in the continuous reduction of our energy consumption, carbon footprint and carbon tax payable. The Company has achieved an absolute electricity consumption improvement of 2-3% annually, since our existence. The third lever is strategic energy sourcing. Considering how we source our energy through alternative energy sources has not only become the responsible option, but an imperative. Strategic energy sourcing seeks to match and optimise electricity supply projects and commercial terms with our long-term energy needs and decarbonisation objectives. Solar photovoltaic projects are an obvious opportunity given our available land and abundant solar resources, with our first 50MW project in development near our mining complexes in the West Rand. Energy trading is another future consideration. One of our implemented tactical

interventions is the extraction of underground methane to the surface at our Beatrix South operation which is then used to generate electricity and carbon credits. Lastly, there is decarbonisation which stipulates how we can accelerate our decarbonisation pathway beyond the positive influences of demand side management and strategic energy sourcing. It includes specific interventions to decarbonise carbon-intensive operations and other mechanisms such as carbon trading to offset the Companyâ&#x20AC;&#x2122;s carbon footprint. A practical example is the recent electrification of the Beatrix coalfired boilers. It also promotes a responsible carbon tax regime that balances the climate change imperative and the financial sustainability of our operations. All in all, Sibanye-Stillwater is a company that recognises the real risks of climate change and our obligations as a responsible operator in helping mitigate through sustainable energy use and sourcing. A long-term view is the need to ensure the transition to a carbon-free future but with strong and decisive action in the short-term as the world cannot afford to wait any longer.

TRANSPORT

Give our planet a second life

Repurpose electric vehicle batteries BY LANCE DICKERSON AND FELIX VON BORMANN*

The mass rollout of electric vehicles may have been a pipe dream a few decades ago, but with various European cities setting near-term deadlines on the phasing out of fossil-fuel combustion engines, there’s no turning back the clock. The planet – the only one we have – depends on it.

owever, it is in the far East that we find the shining light of electric vehicle (EV) mobility. Chinese city Shenzhen leads the charge, with nearly its entire taxi and bus fleet having been converted to electrical. In addition to that, by last year, over 60 000 light delivery vehicles, or 35% of the government’s fleet, were electric. Shenzhen City [pictured above], as a smart mobility torch-bearer, has given the rest of the world a blueprint to fast-track their earth-friendly

mobility transformation. Subsidies create near cost parity between EVs and combustion vehicles, subsidies for charging infrastructure have resulted in a rapidly growing network, road restrictions incentivise the use of no-emission vehicles, preferential electricity rates and mandated district targets have driven this rapid transformation. Looking ahead, market forces are expected to take over the EV economy they created. The ramifications for the global trade system are highly complex and

TRANSPORT

Much like EVs, for all the existing supply chains and industry at stake, the inevitable transformation to cleaner, or green, power sources cannot be turned back.

worth many billions of dollars. Much of our modern history has depended on oil and the associated geopolitical implications. However, despite denialists’ fervent objections, the global warming evidence continues to stack up and that to safeguard our planet, there can be no further delays in pursuing clean, or green, mobility and – importantly – power. Wind and solar power continue to become more affordable and efficient, and South Africa’s government recently reaffirmed its commitment to renewable energy as an important part of the country’s energy mix over the medium and long term. Much like EVs, for all the existing supply chains and industry at stake, the inevitable transformation to cleaner, or green, power sources cannot be turned back. But it’s not all roses. EVs run off lithium-ion batteries. These batteries are replaced after a few years in the vehicle when the output of the battery cannot justify its weight in the vehicle. At this point, the battery is replaced with a new one. Various estimates and industry experts had predicted that by this year, China would produce 500 000 metric tons of used lithium-ion batteries. By 2030, they say, this number will reach 2-million metric tons. Most of these will end up in landfills. As demand for the ingredients that make these batteries surges – mines need to keep up and extract these metals from the earth – our ability to dispose of used batteries or recycle them has not kept pace. It is a bitter irony that an advancement in technology, one that should be celebrated for its low emission and green motivation, should itself become a culprit in producing waste that’s harmful to the planet. The world has taken note of this imbalance. In March this year, a bill called the “Battery and Critical Minerals Recycling Act of 2020” was introduced in the Senate in the US. It seeks to boost the Federal Government’s investment in lithium-ion battery recycling.

A chance at a second life However, there is a critical fact about used EV batteries themselves that holds the key to two environmental questions: first, what can we do to keep used EV batteries out of landfills, and then, how can we provide energy storage with lithium-ion performance without providing further

strain on the environment? The answer lies in repurposing old EV batteries for stationary energy storage. As mentioned already – there comes a time in every EV life that the output of its battery does not justify its weight: after all, EVs need to move. However, for stationary storage, for uninterrupted power supply (UPS) systems or backup to provide constant power from renewable energy sources, weight does not matter. The next obvious question is whether the used batteries are sub-par, meaning repurposing the cells for stationary storage is simply a case of transporting waste from one place to another. The answer is unequivocal – used EV lithium-ion batteries have at least a further 3 500 to 5 000 cycles in them, providing a lifespan of about 10 to 15 years, all the while exploiting the performance of lithium-ion, but at a significantly reduced cost. Automotive cells are built to tolerate higher temperatures during operation before damage starts occurring. This higher temperature tolerance allows higher discharge currents. This is significantly higher than batteries built for storage. Limiting discharge in the repurposed batteries translates to longer battery life. The obvious ramifications of repurposing these EV batteries and giving them a second life is that it gives the planet a breather. Instead of competing with the EV sector for raw materials to build new batteries, repurposing the tons of existing used batteries takes the pressure off mining activities and the subsequent supply chains, all of which carry a heavy carbon burden. In South Africa, which buys in Rands, the business case is compelling, not least because our government has finally seen the light regarding cleaning up our coal-based power grid, but also because the grid is so unreliable and unpredictable that more and more businesses and households are investing in battery backup. This gives them access to lithium-ion performance at a more attractive price point. We have an opportunity to contribute to the problem of discarded EV batteries in a proactive and carbon-friendly manner. Second life batteries are to energy what recycling is to household and business consumption – a sustainable alternative to give our planet a breathing chance.

*Lance Dickerson, former Executive at MTN in Ghana and Nigeria, and Felix von Bormann, former engineering consultant for Sprint in the US, founded REVOV in 2016, an energy storage solutions company that sells carry-case sized second life lithium-ion battery solutions as single units or in powerful systems of up to 200 batteries.

LEBALELO WATER USER ASSOCIATION

IMPROVING LIVES THROUGH WATER Lebalelo Water User Association (LWUA) was established in 2002 with members comprising of the Department of Water and Sanitation (DWS) and mining companies in the Eastern Limb. Lebalelo is mainly responsible for the provisioning of bulk raw water to the mining companies and local Government. In the fight against Covid-19, Lebalelo supported Government through the delivery of water tanks to 70 villages and 47 schools in the Fetakgomo Tubatse Local Municipality. LWUA is a public private sector institution that is well positioned to collaborate with Government in providing bulk raw and potable water to defined areas in the Bushveld Igneous Complex.

info@lebalelo.co.za Tel: 012 348 4654 www.lebalelo.co.za Head Office 8 Charbury Road Lynnwood Manor Pretoria, 0081 Operations Office Farm Havercroft 99KT Modubeng Maroke, 1154

WATER

Introducing Lebalelo

Water User Association

Established in 2002, Lebalelo provides bulk raw water to the Department of Water and Sanitation and mining companies in the Limpopo province. Lebalelo recognises that to deliver against its mandate of “Improving lives through Water” it must prioritise the wellness of the communities in the area of its operations. The Journal spoke to them to find out how they manage to do so with excellence. Who is Lebalelo?

Lebalelo supports government to fight Covid-19

Water User Associations (WUA) are co-operative associations of water users established under the National Water Act to undertake waterrelated activities for the mutual benefit of all their members. Within the associations, members co-operate and pool resources to address local water-related needs and priorities. Shortly after establishment in 2002, Lebalelo constructed and commissioned bulk raw water infrastructure to support its members. The Scheme (Figure 1) currently comprises a 110km pipeline from the Olifants river, passing along the various mines, as well as an abstraction weir, settling ponds, pump stations, and storage reservoirs. In 2007, Lebalelo supported the government with the raising of the Flag Boshielo dam wall to increase its yield and extended its bulk raw water infrastructure past Steelpoort to Mototolo mine and later also to Booysendal to accommodate additional members.

To fight the spread of the Covid-19 virus, people are required to wash their hands regularly and to have access to drinking water. The Department in collaboration with the Sekhukhune District Municipality (SDM), partnered with Lebalelo to supply water to communities that are continuously affected by the lack of sustainable water supply in the Fetakgomo Tubatse and Makhuduthamaga local municipalities. The Department of Basic Education (DBE) also approached Lebalelo for assistance in supplying water tanks to schools in both municipalities and to fill the water tanks with safe and clean water. Lebalelo took up the challenge and responded, by: • Providing water tanks, with a capacity of 10 000 litres each, for 70 villages and smaller tanks to 47 schools in the Fetakgomo Tubatse and Makhuduthamaga local municipalities • Purchasing six water tankers and hiring an additional three for the use of Sekhukhune District Municipality to supply water to the villages •D rilling and repairing several boreholes in identified villages

Figure 1: Lebalelo pipeline and other assets

Lebalelo’s community involvement There are roughly 105 communities in Lebalelo’s area of operations. These communities encompass a wide variety of people, cultures and geographies, most of which experience significant socio economic challenges, such as unemployment, lack of skills and development opportunities, high secondary school dropout rates, high HIV/Aids infection rates, electricity supply issues, the proximity of shops/food sources and sparse cell phone reception. Key to Lebalelo’s revised business strategy is the socio-economic development of the region in which it operates. Lebalelo, in collaboration with the government and the mining sector, is facilitating the establishment of a socio-economic development collaboration forum to drive economic upliftment within the area.

Water is an essential commodity for both domestic needs and economic growth. This crisis has again highlighted the plight of our most vulnerable communities. Lebalelo’s rapid response to the Covid crisis highlighted its ability to further support and collaborate with government around bulk raw and potable water provisioning to defined areas in the Bushveld Igneous Complex.

Integrated water solution Lebalelo has developed a concept study that looks at an integrated solution to implement bulk raw and potable water to water users in the northern and eastern limb of the Limpopo province. Currently, there are discussions with government around the feasibility thereof.

FOOD SECURITY

RENEWED AT 75 The UN’s food agency was born in the wake of catastrophe. Three-quarters of a century later, its mission has been made more relevant to the world at large by another global scourge. BY DR QU DONGYU, UNITED NATIONS (FAO)*

won’t deny it: when I took over as Director-General of the Food and Agriculture Organisation of the United Nations (FAO) last year, I could barely contain my emotion. FAO’s foundation, after all, had preceded – if only by a matter of days – that of the United Nations itself. That I, born into a Chinese peasant family, would come to lead such a venerable institution was awe-inspiring enough. What I did not expect was that a short while into my tenure, the

world would be confronted with a challenge on a scale not seen since the end of World War II. The Covid-19 pandemic has not only taken a toll on human lives and health, it also threatens the livelihoods of hundreds of millions of people across the world. Food security, until recently a rather foreign concept to many living in well-to-do countries, would suddenly grab news headlines globally and claim the agenda at many high-level events.

FOOD SECURITY

Let’s return to 1945, the year FAO was founded: a third of the victims of World War II had died of malnutrition and associated diseases. Famines had decimated populations over the previous decades. So nations came together, and FAO was established on 16 October 1945. Its founders invested in the new institution the world’s aspiration – to help the world rebuild and expand agriculture, and to end hunger forever. Today’s crisis may be less tangibly apocalyptic. But the numbers are no less staggering. Even before Covid-19 hit, nearly 700-million people were undernourished. The economic disruption linked to the pandemic may add another 130 million or so to these. In the early days of the pandemic, when shelves went empty; when fruit-pickers went missing; when markets fell silent, we realised that we were taking these services, and the people that provide them, for granted. The moral imperative to feed the world – safely, durably, with dignity for all – is as urgent now as it was after the War. I am aware, as I write these lines, that the analogy with 1945 can only get us so far. Back then, the crisis was one of production. FAO’s first years were largely focused on expanding the output of farms, boosting yields, supporting mechanisation and irrigation schemes. Over subsequent decades, this vision became immensely more complex, enriched with environmental and sustainability concerns. A more holistic understanding of development set in. Until the mid-2010s, the world was making impressive progress in reducing hunger. But it has since been rising again. Conflict and extreme weather patterns are to blame, at least in part. What we now need is smart, systemic action to get the food to those who need it and improve it for those who have it. Action to prevent crops from rotting in the field, for lack of efficient supply chains. Action to enhance the use of digital tools and artificial intelligence, so as to predict threats to harvest, automatically trigger crop insurance and cut climate risk. Action to rescue biodiversity from relentless erosion. Action to turn cities into the farms of tomorrow. Action by governments to implement policies that make healthy diets more accessible. Action by agencies like

mine to turn to think-tanks and action-tanks rolled into one, linking up with the research community and the private sector to unleash the power of innovation. So at 75, FAO is far from thinking of riding off into the sunset. We are not day-dreaming either. Covid-19 has made it abundantly clear that our mission is as relevant as when our founders created FAO in 1945. Cataclysms spur renewal. The pandemic has reminded everyone that food security and nutritious diets matter to all. This is why FAO is today embarking on the next chapter in its story with a renewed sense of purpose. On the structural side, a flatter leadership structure and a modular approach allow for a more rapid reaction when crises hit. A comprehensive and holistic Covid-19 Response and Recovery Programme proactively and sustainably addresses the socio-economic impacts of the pandemic, mitigating the immediate pressures, while strengthening the long-term resilience of food systems and livelihoods. Our Hand-in-Hand matchmaking initiative accelerates agricultural transformation and sustainable rural development in countries that have the highest rates of poverty and hunger. It is supported by a geospatial platform designed as an open-source public good that is already aggregating vast amounts of food security data. The position of a Chief Scientist has been established to sharpen up knowledge generation and drive scientific partnerships geared to the Sustainable Development Goals. The newly reformed FAO is more inclusive, efficient and dynamic, focusing on what we have designated as the “Four betters”: better production, better nutrition, a better environment, a better life. We strongly believe that the future is made of such gestures – by ourselves, by our partners, by civil society. It takes vast numbers to achieve Zero Hunger. Indeed, it takes all of us. *Dr QU Dongyu is the Director-General of the Food and Agriculture Organisation of the United Nations.

CUSTOMER

Sustainability

practices crucial for food producers

The worldâ&#x20AC;&#x2122;s population is expected to increase by more than 35% by 2050. Food producers must find ways to support this growth, while minimising their environmental impact and adapting to disruptions brought on by climate change. The Green Economy Journal talks to McCain Foods South Africa about their sustainability practises within the food and beverages sector. 30

CUSTOMER

McCain’s Sustainability Strategy The company’s sustainability journey is underpinned by its purpose to celebrate real connections through delicious, planet-friendly food.

olleen Francis, category and marketing director at McCain Foods South Africa says that in South Africa specifically, the Covid-19 pandemic has highlighted shortcomings in the country’s food supply chain and has shone a spotlight on food security and the plight of vulnerable communities. It is now more important than ever for food producers and supply chains to accelerate efforts to build a sustainable future – one in which they produce less waste, address food security, and adapt to changing consumer behaviours and disruptions in the food supply chain. With this in mind, McCain recently released its 2019 Sustainability Report, in which it outlines its sustainability commitments in alignment with the United Nation’s key Sustainable Development Goals (SDGs), which the company believes it can make a positive contribution to by 2030. “We’ve mapped our key sustainability initiatives to the 17 SDGs and identified seven goals where we believe we can maximise our resources and relationships to the greatest effect globally and in South Africa to address and mitigate these challenges,” says Francois Tasmowski, Senior Director, McCain Global CSR.

By delivering its Global Sustainability Strategy, McCain aims to make a positive contribution to these seven global goals. Tasmowski outlines the United Nations SDGs below and how the company aims to make a positive contribution to them in South Africa: Zero hunger (SDG 2): Ending hunger, food security and malnutrition for all, will require continued and focused efforts. We have ongoing community feeding programmes with Food Forward SA as well as regional beneficiaries, while we also assess the opportunity to launch a pilot project, leveraging sweet potato to address malnutrition and support local livelihoods. Clean water (SDG 6): We have committed to a 15% improvement in water-use efficiency in our two potato and vegetable processing plants in South Africa by 2025. We will be contributing significantly in funding towards the Safe Water Project in Delmas, which will positively impact the lives of the people in the community. Clean energy (SDG 7): To reduce our carbon footprint, we have planned solar panels at both the Springs and Delmas sites, which will result in a reduction of 9 000 tons of CO2 emissions. Economic growth (SDG 8): Increasing labour productivity is essential for financial growth. We promote this by stimulating employment and developing knowledge and employability skills in rural areas. In South Africa, we will also finalise 225 learnership and graduate programmes by 2025. Responsible production (SDG 12): McCain has committed to four goals in support of promoting smart and sustainable farming in South Africa, which it intends to achieve by 2025. These include reducing average transport distance from farm to plant by 16%; increasing potato crop usage from the current 93% to 97% through a combination of varietal and local speciality potato production; implementing optimised soil irrigation systems on 1 500 hectares per year; and increasing the number of Good Agricultural Practices (GAP)-certified growers from 39% to 100% by 2025. Climate action (SDG 13): This is one of the single largest threats to humanity as well as the business. The company’s sustainability journey is underpinned by its purpose to celebrate real connections through delicious, planet-friendly food. This articulates our belief that connecting people through delicious food that is produced responsibly is how we create enjoyment today and a more sustainable planet tomorrow. Partnerships for the goals (SDG 17): We aim to establish and evaluate partnerships for onsite solar and wind generation in our plants in South Africa. We will also continue to identify new projects that will help us reach our 2030 target such as our partnership with Pick n Pay in their participation in the global 10 x 20 x 30, which aims to reduce food waste.

A large focus for McCain is also to partner with its growers to provide advice and help to future-proof their operations when it comes to sustainable practices. Tasmowski adds that the company’s sustainability journey is underpinned by its purpose to celebrate real connections through delicious, planet-friendly food. “This articulates our belief that connecting people through delicious food that is produced responsibly is how we create enjoyment today and a more sustainable planet tomorrow.” This sentiment is summed up in the words of McCain’s President and CEO, Max Koeune: “I believe we must move into an era of increased positive action, continuing to grow with our customers, while reducing our environmental footprint and driving new models of sustainable farming.”

Gamtoos Irrigation Board is passionate about service delivery and the effective provision of water to all users at an affordable price. We are proactive in the face of environmental and socio-economic challenges, and are working hard to transform, preserve and protect our water scheme. Water is the lifeblood of agricultural production in the Gamtoos River Valley. By supplying both our established commercial agricultural users and our emerging farmers, we are helping to ensure food security for our people.

www.gamtooswater.co.za

We are moving forward.

WATER

The Forex Generator

that needs saving

In the Gamtoos River Valley, where the Kouga Dam reached new lows of around six percent of total capacity, the Gamtoos Irrigation Board (GIB) has been working hard to ensure that commercial agricultural users, the small towns of Hankey and Patensie, and the Nelson Mandela Bay Municipality receive their annual water allocations.

“T

he provision of water is now both a health issue and an economic one,” says the CEO of Gamtoos Irrigation Board (GIB), Rienette Colesky. “Our communities need continuous water supply to adhere to the basic hygiene guidelines required in the fight against the coronavirus, and we are largely dependent on agriculture for our collective socio-economic survival.”

Agro-economic impact With farmers only receiving 20% of their standard quota for the current water year, which began in July, food production is under severe pressure in the Valley. But, Colesky explains, the impact of sound water management goes beyond the regional boundaries and has a ripple effect on the South African economy as a whole. “Water security is a critical component of the entire agricultural produce export value chain. As a forex generator, it contributes to our local, regional and national economy.” With the economy already reeling from the impact of Covid-19 and the national lockdown, Colesky says an urgent, collective effort in terms of resource planning by all stakeholders – from regional to national level – is critical for a sustainable future. “We need partnerships between government and civil society. As an irrigation board, we have built a good relationship with the Department of Water Affairs and we keep one another accountable in our respective roles and responsibilities.”

Water management strategy An active management strategy to conserve what remains of the Kouga Dam’s contents has seen GIB supplying water for four days of the week and closing the sluices from the dam on the remaining days. “We are releasing 25% of the average historical percentage for the given month, and the dam level seems to be inching upwards in response to this strategy,” says Colesky. The lack of water has certainly had a constraining effect on both the GIB’s and local agriculture’s operations, although both were deemed essential services and continued with minimal restrictions throughout the national lockdown.

“The peak of the pandemic was reckoned to be reached during our annual dry period when parts of the canal system are shut down for annual maintenance. To waste as little water as possible, we carried out only essential maintenance, to prolong the life of the Gamtoos water scheme.” The state-subsidised National Resource Management Programmes, for which GIB is an implementing agent in the Eastern Cape, were put on hold until June and much of the annual funding was re-allocated to the government’s emergency Covid-19 relief schemes.

Planning for the future As far as GIB’s core business is concerned, Colesky says the Board used this year to put systems in place to better monitor the state of the canal system and to protect and repair large sections where necessary. “It’s one of the things that sets us apart,” she says. “We maintain – and improve – the infrastructure we have, to avoid costly problems in the future.” As the only Eastern Cape irrigation board identified for transformation to a water users’ association under the National Water Act by the Department of Water and Sanitation, the organisation is doing something right. “Under this new structure, which is a co-operative association of individual water users, we will be tasked with a broader responsibility for additional water resources, including boreholes and the like. “Our hydrological boundaries will also change with a possible increase in our area of responsibility. But what won’t change is our passion for water and people,” adds Colesky.

COUNCIL FOR GEOSCIENCE October 2020 2020 November The Council for Geoscience (CGS) is the national custodian responsible for the collection, compilation and curation of all onshore and oﬀshore geoscience data and information. The CGS aims to use this information and knowledge to develop geoscience solutions to real-world challenges in South Africa. GEOSCIENCE MAPPING

ENGINEERING GEOLOGY AND GEOHAZARDS

Geoscience mapping is the core function of the CGS and aims to develop fundamental geoscience knowledge using an integrated and multidisciplinary approach as well as innovation that merges several onshore and oﬀshore geoscience themes such as geology, geotechnical studies, geochemistry, geophysics and economic geology for mineral and energy resources and their mineralising systems information to boost sustainable exploration for economic growth.

As the custodian of the national seismological network, the CGS monitors and maintains a geohazard inventory for South Africa. This information is primarily used in developing eﬀective and novel geohazard mitigation solutions for safe and judicious land use. Modern artiﬁcial intelligence techniques are applied in subsidence mapping and seismic hazards characterization.

WORLD CLASS FACILITIES The geoscience functions are supported by a multi-faceted laboratory that performs a wide range of analytical services such as petrography, whole rock geochemistry, petrophysics, coal science and hydrochemistry. The CGS also manages a geoscience museum, library, bookshop, and national core repository which are used by the scientiﬁc community and the general public.

AFRICAN FOOTPRINT AND OTHER COLLABORATIONS As the permanent secretariat of the Organisation of African Geological Surveys (OAGS), the CGS has an impressive footprint in the African continent where various geoscience services have been rendered in line with global standards, international policy and governance. The CGS also collaborates with various academic institutions and science councils around the world.

WATER AND ENVIRONMENT The CGS carries out hydrogeological studies and aquifer modelling and is also responsible for environmental geoscience research which aims to provide sustainable solutions to monitor and mitigate the impact of geology and mining activities on the health of the environment including its inhabitants.

CGS AT WORK • The CGS is undertaking integrated and multidisciplinary geoscience mapping programme across South Africa. • Some of the recent projects include: - Multidisciplinary geoenvironmental baseline investigations in the Southern Karoo for possible shale gas development, which uncovered previously undeﬁned groundwater aquifers. - Regional soil geochemical sampling and detailed follow-up surveys, particularly within the Northern Cape, North West and Mpumalanga provinces. - Geothermal energy and carbon capture and storage research, which aims to expand the current renewable energy mix of South Africa and decrease the carbon footprint. - Ground stability and geotechnical assessments for infrastructure development in the Northern Cape and Free State Provinces.

CONTACT US @CGS_RSA I I Our head oﬃce is located at: 280 Pretoria Street, Pretoria, 0184 I Tel: +27 (0)12 841 1911 I Email: info@geoscience.org.za I Web: www.geoscience.org.za

CARBON CAPTURE, UTILISATION AND STORAGE A JUST TRANSITION TO A LOWER CARBON ENERGY ECONOMY

outh Africa (SA) has a coal derived energy economy that was brought about by plentiful indigenous coal resources, and upon which has been based the development of the national economy over the last century. Moreover, during 2012 the coal mining industry employed 91,605 individuals or 17% of the total mining workforce1. Furthermore, coal-fired power stations produce about 90% of the country’s electricity. Thus the importance of the coal sector in SA. However, the combustion of fossil fuels leads to the emission of carbon dioxide (CO2) into the atmosphere and consequently the anthropogenic forcing of climate change. The emissions of such greenhouse gases is a global concern and consequently any programme to mitigate these emissions must be done in concert with global actions. In this regard, the South African Government has reaffirmed its international commitment toward climate change mitigation and has made an undertaking to reduce the nation’s CO2 emissions by nearly 50% by 2030. This will be achieved through energy efficiency and the implementation of alternative lowcarbon energy sources. With extensive coal reserves and current infra-structure, SA will however still rely heavily on coal-fired energy generation in the medium to long-term as it undertakes a just energy transition journey toward this low-carbon economy. The South African government has also committed the country in adopting a “Just Transition” to a low carbon economy as captured in the recently adopted Integrated Resource Plan (IRP2019). Such transformation can be influenced by the existing infra-structure, political factors and demand. Transition to a low-carbon energy economy is inevitable, however such a change must be in the form of a Just Transition. The International Trade Union Confederation defines a Just Transition as that which “…secures the future and livelihoods of workers and their communities in the transition to a low-carbon economy. Carbon Capture, Utilisation and Storage (CCUS) forms part of that Just Transition. CCUS is a new industry in SA for the mitigation of CO 2 emissions into the atmosphere. It is expected that CCUS could mitigate up to 20% of South Africa’s total CO2 emissions. The purpose of this technology is to assist SA to meet its international obligations pertaining to its greenhousegas emission limitation target in an effort to ameliorate global climate change.

CAPTURED CARBON DIOXIDE

UTILISATION Commercial Products Chemicals Ethanol Synthetic Fuels Fertilisers Enhanced Oil/Gas Recovery Enhanced Plant Growth Concrete Curing Construction Materials CCUS can be trifurcated into its main components, namely, Capture of CO 2 from the flue gases of say a power station; Utilisation of CO2 as a feedstock to produce high value commercial products; and Storage whereby the CO2 is safely and permanently stored in deep geological formations. The Capture of CO2 aims to produce an approximate 98% concentration of CO2. The Utilisation of CO2 is not new, it being used for example in the food industry (e.g. carbonated drinks) and fire extinguishers. The South African industry use of CO2 is approximately 200 tonnes per year. Globally it has been shown that CO2 may also be used as feedstock for chemicals, synthetic fuels and fertilisers. This recycling of CO2 can be further de-carbonised by making use of renewable energy. Products can be manufactured when renewable energy is available and stored for future use. The Council for Geoscience is implementing the CCUS project by conducting research that aims to identify geological storage media that would be appropriate for storing CO2. This work is funded by the SA Government and the World Bank. The International Energy Agency has previously stated that globally the lowest cost of mitigating CO2 emissions into the atmosphere must include Carbon Capture and Storage. However, since the Paris Agreement (hold temperature increase to significantly lower than 2oC) Carbon Capture and Storage is essential. 1

SA Statistics

STORAGE Regulatory Compliance Deep Geological Storage Usually 1-2km Deep Safe & Permanent Mineralisation

The South African Bureau of Standards, in conjunction with the International Standards Organisation, is currently developing standards for Carbon Capture and Storage in SA. The national and industry benefits of a complete set of CCUS standards will steer the development and operation of this new industry in SA and thereby ensure 1) that newly created jobs comply with health and safety issues, 2) public health and safety during the operation of the plant, 3) quantification and verification of the permanency of CO2 stored in compliance with international reporting requirements, 4) apposite risk management 5) that the industry conforms to at least minimum operational norms thereby guiding the industry in the development and roll-out of this new sector 6) that leakage from the above-ground operations and sub-surface geological storage is minimised. The CCUS project participates in international organisations and the consequent high international profile of the South African Programme has led to financial and in-kind support for the local Programme. Such support has come from South African government and industry, Norway, UK, EU, Carbon Sequestration Leadership Forum, and the Global Carbon Capture and Storage Institute. More recently the World Bank has made available a grant of $US23 million for the pilot storage project. Following the current Pilot Carbon Dioxide Storage Project, it is scheduled that a fully integrated demonstration project will be underway during 2030.

CONTACT US @CGS_RSA I I Our head office is located at: 280 Pretoria Street, Pretoria, 0184 I Tel: +27 (0)12 841 1911 I Email: info@geoscience.org.za I Web: www.geoscience.org.za

OPINION

Eskom’s RMPPP: The warning light is on, and it’s flashing BY NORMAN JACKSON

Eskom’s plan to bridge the short-term supply gap being experienced now, is the procurement of 2 000MW of capacity via the Risk Mitigation Independent Power Producer Procurement Programme. All was looking good and a tender of three-to-five years was expected. I had a vision of a massive ship or two off the coast, feeding harbour-based power barges with natural gas.

Bloomberg via Getty Images

OPINION

spoke to energy expert, Clyde Mallinson, for an update on the Risk Mitigation Independent Power Producer Procurement Programme (RMI4P) and his alternative suggestion . According to Mallinson, the RMI4P’s technical specification seems to be written around gas or petroleum generators, and the Power Purchase Agreement (PPA) has changed from a three-to-five-year to a 20-year PPA. For those who are not energy experts, you would typically use a gas or petroleum generator for a short-term contract, as it has a relatively low capital cost but high operating cost, whereas on a long-term contract you would typically use renewables (wind and solar) and storage, which has a much higher capital cost but very low operating cost. Mallinson says that Eskom is currently using diesel generators to assist in the energy supply shortage at a cost of approximately R3.40/kWh, the tender for the gas solution should come in at about R1.70/kWh, which is about half the cost. The present average Eskom selling price is less than R1.10/kWh, however. A short-term solution that costs half the current solution and is much greener has my vote, any day of the week. A thermal solution is not a long-term solution, as Eskom are still losing money. This article is not about which energy solution is the best or who should get what, we all agree we need a mix of coal, nuclear, wind, solar, gas, others and energy storage. It is about what technology to use now to increase our multifaceted and complex generation capacity that should be seen holistically and not from the perspective of individual power stations. It is about what can do the job in the most cost-effective way. Lazard has just recently issued its 2020 internationally recognised technologies report on the . I have converted the US$ prices into rands using an ROE $1.00 = ZAR16.00: LCOE – Gas combined cycle: Utilisation factor of 55-70% and a natural gas cost of $7.00/MMBtu. (R1.12 to R1.60/kWh) LCOE – Wind: Capacity factor of 31-36%. (R0.75 to R1.23/kWh) LCOE – Solar PV (crystalline and single axis tracker): Capacity factor of 27-29%. (Utility-scale cost of R0.72 and commercial rooftop cost of R2.18/kWh) LCOE – Solar and energy storage: Storage of four hours per kW. (R1.30 to R2.24/kWh) Presently Eskom’s pumped storage projects are not being used to stabilise the grid or peaking stations, but rather as a generator that discharges during the week and charges on the weekend. This means we actually have available storage capacity, what we urgently need is energy generation, and wind and solar PV is the obvious lowest cost choice for a long-term PPA.

When elephants fight, it is the grass that suffers the most. -African proverb

If we use Mallison’s immediate requirement calculation of 3 000MW of solar, 2 000MW of wind and 3 000MWh of additional storage and we use the low-end figures from Lazard, we should get tenders starting at R0.82/kWh. This assumes the RMI4P tender was written for all technologies and each project was seen as part of an overall solution. Using this approach Eskom could make a profit from the power procured under the RMI4P. As stated previously, this is not about bashing gas, I love natural gas. It is the cheaper immediate alternative that we have at the moment – greener, and cheap to store. There are some amazing technologies around gas and it must be one of the world’s best energy sources. My issue is that we do not have the gas infrastructure nor the immediately available resources in

It is about what technology to use now to increase our multifaceted and complex generation capacity that should be seen holistically and not from the perspective of individual power stations.

South Africa, and we would be replacing locally mined coal with imported gas - especially when arguably, South Africa has the best-combined solar PV and wind resources in the world, and an abundance of natural energy storage resources such as vanadium.

The warning light is now flashing! So why does gas appear to be favoured in the government’s 2019 IRP with up to 8GW? Well, when we have a flashing warning light and we assume the warning light is not faulty, we enter into the realm of speculation. I love speculation because it shows either a person’s knowledge on the subject or the vividity of their imagination. Let’s have a look at the most flighted conspiracy theories as to why government would favour gas. 1) Mozambique jihadist onslaught There is an old African proverb saying, “When elephants fight, it is the grass that suffers the most”. The last resource you want a third-world country to discover is a large gas or petroleum deposit. Mozambique is about to become the world’s fourth-biggest gas producer and that fact attracts the superpowers to either take control or create the biggest business opportunity, which is war. The first two elephants are “Wagner”, a Russian Mercenary company, and the other elephant calls itself “Jihadist”, which is a lie, they are internationally paid mercenaries and thugs, hiding behind a religious banner. Our neighbour, Mozambique, needs customers for its gas. It needs to pay for the elephant and associated costs in its corner. 2) Russian roulette South Africa and Russia are both members of BRICS and the relationship must be a little icy since Russia was “left at the altar” with the failed nuclear deal. Russia thought the marriage occurred, but South Africa contended that the marriage was not consummated, which is ironic from a Russian perspective, as they believe South Africa tied the knot with them. Russia’s Gazprom would be a significant player in South Africa’s gas business, and the international relationship would be warmer. 3) A new SOE feeding trough There seems to be a direct link between previous SOE fraudulent tenderers and political party funders. The newly established national petroleum company is a state-owned enterprise (SOE) that wants to be to gas and petroleum what Eskom is to electricity. The existing SOE “feeding troughs” are empty and a new SOE with no fraudulent tender history will be required to undertake “mega gas infrastructure projects” with public funds. I am sure political parties are feeling the pinch when it comes to fund-raising. So what do you think is the best conspiracy theory? Point one, two or three or all of the above. “May you live in interesting times.” – A traditional Chinese curse.

ENERGY

SA is heading towards a

WINDY GREEN FUTURE

– once again

BY NTOMBIFUTHI NTULI, SAWEA*

We are catching our breath after a momentous couple of months behind us, with the promise of exponential progress ahead. Policy and clear direction from government signals the reawakening of our country’s wind industry that indicates a return to the heady days of 2011 to 2014, when we witnessed ongoing procurement of clean power and rolling investment that helped drive the economy during that period.

he 10th annual Windaba conference, which was hosted in October 2020, as a virtual event for the first time, saw hundreds of local and international renewable energy players gathering online amongst thought leaders that are geared to support the industry to deliver 14.4GW of wind over the next decade. We are certain that our industry is ready to step up and deliver. In light of the enormous progress that has been made over the last 12 months, specifically with regards to policy, we believe that the stage is set for the next decade of wind power. The shift kicked off about a year ago with the approval of the Integrated Resource Plan 2019, which allocates 1.6GW per annum from 2022 to 2030 to wind energy, and we now have a clear path for procurement of additional new generation capacity clearly outlined in the Section 34 Ministerial Determination that was gazetted in September 2020, by the Mineral Resources and Energy Minister Gwede Mantashe. The determination allows for the procurement of more renewable energy from Independent Power Producers (IPPs), which brings us one giant step closer to a new round of renewable power procurement that has the potential to unlock R40-billion annual investment, from the wind energy industry alone. Just as exciting was President Ramaphosa’s confirmation that this procurement will allow for the development of 1 180MW of new electricity capacity, indicating government’s commitment to unlocking growth and investment in the ailing economy, exacerbated by the Covid-19 pandemic. Additionally, the President has noted the role that the sector has to play in the government’s economic recovery strategy. Further evidence of positive change comes from Public Enterprises Minister Hon. Pravin Gordhan’s recent keynote address on governments’ intent and commitment to implement an Independent Transmission Grid System and Market Operator (ITSMO) in South Africa. Renewable power has a key role to play to rebuild the country, as a significant catalyst of economic growth. We are therefore encouraged that our sector is being recognised for its delivery of clean power that is affordable, as

A new round of renewable power procurement has the potential to unlock R40-billion annual investment from the wind industry.

well as wind and solar’s ability to be delivered within an 18-24-month period. Additionally, clean technology is seen to be offering hope for our country to meet energy demand on a localised level and even to fulfil our international obligation to decarbonise our power sector. We have been just as heartened by Eskom’s CEO, Andre de Ruyter, who addressed industry sector leaders on the same platform and reiterated Gordhan’s sentiment. He drew on the availability of “Green Financing” as a vehicle for investment and specifically to draw finance to the overhaul of the country’s national grid, to make ITSMO a reality. He also praised the recent Ministerial determinations that allocate the procurement of 11 800MW of new generation capacity that is to be deployed by wind and solar generation, which could be built in between 18 and 36 months. De Ruyter has previously acknowledged the global shift to renewable energy and the competitive pricing of this technology, while delivering on reduced emissions and jobs. To this end, the utility has established a Just Energy Transition office, to engage workers and communities. It is certainly encouraging that the country’s power utility is quoted acknowledging the environmental benefits of clean power and it cannot continue to violate regulations or ignore the threat of climate change. *Ntombifuthi Ntuli is the CEO of the South African Wind Energy Association (SAWEA).

Economy G

journal

ENQUIRIES

For advertising enquiries: ads@greeneconomy.media For editorial enquiries: info@greeneconomy.media