Green Economy Journal issue 30

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Issue 30 R29.00 incl VAT 9 772410 645003

Sustainable cities Visioning the future Future Tech Autonomous driving Energy Good news for renewables 11025

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EDITOR: Melissa Baird

CONTRIBUTORS: Dorah Modisa Thea Buckle Thapelo Motlogeloa Dr. Linda Godfrey & Claudia Giacovelli Janine Basson Carl Reynolds

PROOF READER: Narike Lintvelt

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PROJECT MANAGER: Vania Reyneke

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WEB: www.alive2green.com/ publications/green-economy-journal/

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PUBLISHER: Gordon Brown, Alive2Green Projects

PHYSICAL ADDRESS: 1st Floor Cape Media House 28 Main Road Rondebosch 7700 Cape Town TEL: 021 447 4733 FAX: 086 694 7443 REG NUMBER: 2005/003854/07 VAT Number: 4750243448 ISSN NUMBER: 2410-6453 PUBLICATION DATE: May 2018

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Green Economy Journal is audited by ABC Issue 30 R29.00 incl VAT 9 772410 645003

Sustainable cities Visioning the future Future Tech Autonomous driving Energy Good news for renewables 11025

Investing Purpose & profit Water Smart treatment technology

Cover image courtesy, The City of Tshwane

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 organizations or products. Please address any concerns in this regard to the Editor.

The Green Economy Journal is printed on Hi-Q Titan plus paper, manufactured by Evergreen Hansol a leading afforestation member acknowledged by FOA. Hi-Q has Chain of Custody certification, is totally chlorine free, and is PEFC, ISO 14001, ISO 9001 accredited. This paper is FSC certified.

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As we sent this edition of the Green Economy Journal to press, the nationwide bus strike was still on and the lives of thousands of commuters were exponentially worse as a result. Getting to and from work should not be a life-threatening exercise, but for commuters in this country it is. They are robbed, charged extra for transport they must wait hours to take, and – if extremely lucky – arrive at work on time and able to have a productive day.

The cost of the strike has yet to be quantified, but the squabble over percentage points on a spreadsheet has meant the charges are beyond scope, leading to the further degradation of what it is to be a worker in this economy reliant on a public transport system that constantly fails its customers. If Cape Town, for example, had a high-speed, safe train to get commuters from A to B, just imagine the relief on traffic congestion and CO2 emissions, and the general improvement in mood. There simply cannot be a happy, productive workforce without safe and reliable public transport.

At their hub, sustainable cities have systems that support the wellbeing of their people and economy. I interviewed Solly Msimanga, Executive Mayor of Tshwane, to find out how he is leading the city to be an icon of sustainable development (read it on page 12), and on page 15 Green Building Council SA CEO Dorah Modisa shares her insights in to what makes a city thrive.

Moving to the energy landscape on page 18, the recent REIPPPP announcements offers hope for more investment and development of renewable energy in SA and the prospect of creating a new wave of employment to support the growth of the sector. Responsible investing is a trend that is gaining traction as purpose-driven businesses are showing real signs of longevity and profit and doing good for the planet. As long as I have been investing I have looked for funds that are ‘ethical’ and to date have not been offered any that can live up to that promise. For now, the investment sector has as much catching up to do as the public transport system. Read more on page 30.

On the waste front, interesting research has been done on the potential this ‘resource’ can offer – again in terms of job creation and the stimulation of new industries. We unpack this on page 23. The circular economy is a concept that is becoming more real and I will be reporting on some exciting initiatives in the next edition. As VAT has been increased so have certain environmental taxes, but with no clear indication of how this money will be spent. If the plastic bag levy is anything to go by – or the failed REDISA plan for waste tyres – then the South African environment is still on the lowest rung of the ‘ development’ ladder, which is not only disappointing but threatening as it is the very foundation of this country. As Gaylord Nelson, the founder of Earth Day over 40 years ago, said: “The economy is a wholly owned subsidiary of the ecology, not the other way around”. Without its ethical and sustainable management, the realisation of human development will always fall short of the best it can be.

Melissa Baird www.alive2green.com/publications/green-economy-journal/

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Contents

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News and Updates New bio-refinery, crypto-currency, green bonds, biochemistry bursary and a new water licensing application

Sustainability Week The annual go-to event in the city of Tshwane for discussion and networking on all aspects of the green economy and development including the African Capital Cities forum

Interview Lonza Water treatment systems Christian Wichert discusses the solutions their technology offers to various sectors

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Sustainable City spotlight

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REIPPPP

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Waste management

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Mobility

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Recycling focus

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Finance

Interview with Tshwane’s executive mayor speaks about future developments

New decisions will boost the renewable energy sector

Spotlight on Africa’s growing waste problems and their inherent opportunities

Event review of Pioneers Mobility – the cars of the future will drive themselves

PETCO is cleaning up

Examining Environmental, Social and Corporate Governance impacts on investment decisions

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News and Updates

Biorefinery facility launched to address waste challenges The South African government has launched the R37.5 million Biorefinery Industry Development Facility (BIDF) at the Council for Scientific and Industrial Research (CSIR) campus in Durban, set to extract maximum value from biomass waste. The facility is a first for South Africa and will support innovation in a range of industries including forestry, agroprocessing and other biomass-based industries.

The initial focus of the BIDF is the forestry sector. Currently, biorefinery in South

Africa’s pulp and paper industry is practised on a very limited scale. Wood, pulp and paper waste ends up in landfill sites or is burnt, stockpiled or even pumped out to sea. The potential to extract value from it is not realised, which means lost opportunities for the country’s economy.

High-value speciality chemicals can be extracted from sawmill and dust shavings, while mill sludge can be converted into nanocrystalline cellulose, biopolymers and biogas.

The BIDF is accessible to large industry

No to straws At least one billion plastic straws are used and disposed of every day, and consumers are waking up to the terrible impact this has on ocean pollution as this is where the straws mostly end up, destroying marine life.

“Be the change you want to see in the world and say no to plastic straws,” is the strapline used by environmentally conscious and entrepreneurial founders of The Bamboo Project, Daniella Corder and Dylan Oosthuizen.

After their first-hand experience of plastic pollution while travelling and teaching in South-East Asia, Dylan and Daniella have returned to the Cape with a mission: To get rid of the single-use plastic straw and in its place promote the use of reusable, biodegradable and handmade high-quality Vietnamese-imported 20cm bamboo drinking straws.

and small, medium and micro-sized enterprises (SMMEs) for their research and development, analytical and pilotscale testing, evaluation, processing and development of technologies for processing biomass. Some of the equipment at the BIDF is unique in the country, and the facility is home to highly skilled chemists, engineers and biologists who are well versed in technologies for beneficiation and valorisation of biomass.

Source: David Mandaha, CSIR Media Relations Manager dmandaha@csir.co.za

News flash The Guardian in the UK has reported on scientists ting discovering a plastic-ea solve p hel ld cou t tha enzyme es. cris on luti pol stic pla the ay is And in Sweden a highw ble ena l wil t being built tha rge cha ally atic om aut cars to are y the ile wh es elv ms the on it.

Source: www.thebambooproject.co.za

Find your future through biochemistry PAMSA invites applications for bursary programme “As the world grapples with the problem of plastic in its rivers and oceans, the pulp and paper industry is presented with opportunities to find renewable and biodegradable alternatives,” says Jane Molony, Executive Director of the Paper Manufacturers Association of South Africa (PAMSA).

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PAMSA is inviting chemical engineering graduates with a passion for biotechnology and biochemistry to apply for a Master of Engineering (M.Eng.) bursary.

“The focus of our student research programmes has been on improving the use of renewable resources such as wood,

recycled paper, forest residues and mill waste streams,” Jane explains.

For the application criteria, participating institutions and the online application form, visit www.thepaperstory.co.za. The deadline for applications is 25 May 2018.

www.alive2green.com/publications/green-economy-journal/

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News and Updates

CRED: A currency to promote purpose-driven projects This new cryptocurrency has been developed to directly support renewable energy projects, enabling investors to directly contribute towards the increased development of sustainable endeavours. It was launched by Luke Ingraham, certified blockchain expert and founder of Credits.Energy, who has been working with Bitcoin since its start. “One day it occurred to me that although the cryptocurrency world is expanding at a fast pace, we still don’t have a ‘crypto with a purpose’,” Luke explains. “With global warming raising serious issues today, we urgently need something to save the world.”

The Credits cryptocurrency and platform app works with mobile mining technology and is presently in its pre-initial coin offering (ICO) stage. The pre-ICO price is 200 Cred = 1 USD. Users can choose the mining power, and the app has an intuitive interface that makes sending, buying and receiving Cred a simple and fast process. “Cred uses a decentralised blockchain that enables participants to keep tabs on their Cred transactions without the worries of centralised monitoring. Moreover, for additional safety, we use the cutting-edge CryptoNight algorithm that is extra anonymous outside of our platform for optimum security,” the company stated.

Source: www.esi-africa.com; https://creds.money

Green bond of the year The City of Cape Town (CoCT) has responded to the drought crisis by launching a green bond worth ZAR1 billion (US$83 million) to finance the city’s water infrastructure.

CoCT identified eligible projects within its capital programme that were already significantly underway, and evaluated them according to the Climate Bonds Standard. This is the first externally certified green bond issued by a South African municipality, and the first to be listed on the Johannesburg Stock Exchange’s green bond division.

Deal highlights: Issuer: City of Cape Town Size: ZAR1 billion ($83 million) Maturity: July 2027 Coupon: 10.17% Use of proceeds: Water capture, storage and distribution infrastructure, alternative water treatment plants, flood defences Deal type: Use of proceeds Lead manager: Rand Merchant Bank External review: Climate Bonds certified, and Moody’s (GB1) Source: www.environmental-finance.com

A new water-use licence system The process for water-use licence applications (WULAs) is improving with an online system being put in place by the Department of Water and Sanitation (DWS), says Jacky Burke, SRK Consulting’s principal environmental scientist and leader of SRK’s WULA Group in Johannesburg, which hosted a workshop on the topic last month.

highlighting the value of making the financial and time investment early in a WUL application so costs can be saved later.

Experts also outlined how applications could benefit from the DWS’s more streamlined and manageable process, while also considering where challenges are being experienced.

The workshop focused on the new electronic water-use licence application and authorisation aystem (EWULAAS),

“EWULAAS certainly promises to be a great improvement on the original paper-based system,” said SRK senior environmental

Above: SRK’s Water Use Licence experts, from left to right: Megan Govender, Jacky Burke, Bjorn Schroder, Avril Owens, Didi Masoabi, Giulia Barr and Angelika Mohr. www.alive2green.com/publications/green-economy-journal/

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scientist Avril Owens. “Among the advantages is the ability to generate a summary of water uses per farm prior to phase one submission, which provides a check and highlights gaps in the application. The submission can also be tracked online, providing more transparency on its progress.”

SRK is maintaining close working links with DWS to help ensure that the system will work.

Source: www.srk.co.za

Above: Jacky Burke, Principal Consultant at SRK Consulting

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Water

Managing water - wiser By: Melissa Baird

Lonza Water Care is a specialty water treatment business providing customised solutions to the industrial, commercial, municipal and surface (ICMS) water treatment markets.

The company offers broad technical expertise with chemical and equipment solutions under the pillar brands of HTH Scientific® and Frexus®. GEJ Editor Melissa Baird spoke to Christian Wichert, Head of Lonza Water Care, about what solutions it offers the industrial and agricultural sectors.

What is your opinion of the water crisis throughout South Africa – and do you have solutions that could help make cities more water resilient?

The current water crisis in the country is a harrowing reality.

It is unfortunate that a crisis of this magnitude is needed to bring non-negotiable water conservation into the spotlight.

At Lonza we focus on water solutions in the agricultural, drinking water and industrial sectors, promoting water reuse and recycling. Many of our products are supplied in a highly concentrated solid form to reduce our “water footprint”. The manufacturing processes used to make these products are also optimised around recycling of process water.

Technology is a vital aspect of water management, especially in the treatment of waste water. What is Lonza’s approach, and how do you work with municipal managers to assist them in choosing the right water treatment?

We agree that technology plays a crucial role in water management.

We have a full range of water treatment disinfection solutions available, ranging from light and functional to fully automated measurement and control systems. Our expertise lies in our ability to tailor-make a complex solution to suit any application, situation and requirements according to individual clients’ needs. Together with municipal managers, our team of water treatment engineers work to provide the best solution for each site.

Looking back over the past 10 years, what do you think could have been done differently to prevent the country’s water crisis?

And looking ahead, what do you see as the key interventions to start fixing the problems?

Although the water crisis had been anticipated, government, industry and water treatment specialists should have worked more closely together to develop and implement contingency plans to mitigate the severity of the situation. Looking ahead, the uncertainty of the effects of global warming and source water pollution necessitates that water efficiency becomes part of our culture and daily focus. Education on water conservation should emphasise that South Africa is an extremely water-stressed country and all of its www.alive2green.com/publications/green-economy-journal/

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dams, rivers and groundwater should be recognised as the limited resources they are.

Does Lonza support research and development of water solutions at South African universities?

Lonza is a global company that works with various universities and research institutes all over the world. We are currently looking into extending these partnerships to local universities and other tertiary institutions.

The construction industry is a heavy water user. What are the solutions for improvement of water usage?

It is always challenging to provide a solution to an industry that is dynamic and not fixed at a specific location. One solution would therefore be to encourage the use of greywater in the various construction processes to promote reuse and recycling of water.

What solutions does Lonza have for water treatment at mines?

The mining industry utilises vast amounts of process water throughout its operations. The South African mining industry forms a large part of Lonza’s customer base through various distributors and partners. We currently provide solutions to the industry in the form of disinfection of service water, process water, effluent, potable and cooling water. We recently launched the Scientific™ C cooling tower product range to expand our offering into the cooling water sector. The range was developed for sites with small to mediumsized cooling towers and is ideal for locations with space constraints.

Like our disinfectants, the Scientific™ C cooling tower product range is solid-based, focusing on sustainability and a reduced water footprint.

The Scientific™ Ultra-S dissolving converts the solid Scientific™ C20V corrosion inhibitor (inside) to an on-demand solution for cooling towers.

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Sustainable Cities

Tshwane House, the City’s municipal headquarters, is a 5-star green rated building

Green City A Tale of a

The City of Tshwane was recently nominated for the Municipality Eco-Logic Award by the Enviropaedia, SA’s only environmental encyclopaedia. GEJ Editor Melissa Baird posed questions to Solly Msimanga, Executive Mayor of Tshwane, regarding the city’s strategic direction and how it intends to be an icon of green development.

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shwane is one of four South African cities to be part of the C40 Cities South Africa 2020 Buildings Programme. Can you tell us more about the programme and what it means for the city?

The C40 South Africa 2020 Building Programme is a new building efficiency (NBE) programme that will be implemented in Tshwane, Cape Town, eThekwini and Johannesburg. Overall the programme is about accelerating and implementing transformational energy policies and programmes for new buildings, working towards net-zero carbon performance. For our city it means going beyond national requirements and business as usual by implementing ambitious carbon reduction targets for all new buildings. As the only city in South Africa that has a Green Building By-Law, it is about setting new trends and showing sustainability leadership.

The City of Tshwane is a member of the Green Building Council of South Africa’s Green Building Leadership Network. You have often stated that Tshwane will be the green building mecca of South Africa. How is the city performing in terms of green buildings?

Tshwane has gained a great deal of exposure and expertise since joining the Green Building Leadership Network and we are proud to have been the first municipality in South Africa to join. The city

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is also a member of the Building Efficiency Accelerator (BEA), a UN sustainable energy-for-all programme aimed at speeding up the adoption of best practice policies and implementation of building efficiency projects, with the goal of doubling the rate of energy efficiency improvement in the building sector by 2030.

We are currently considering becoming part of the “Deep Dive City” for the accelerator programme, which will give us additional support from the coordinating agencies of the programme and ensure a deeper understanding and acceleration of building efficiency. With access to the C40 New Buildings Network we will be able to refine policies, identify capacity-building programmes, ensure stakeholder engagement and work towards the implementation of projects.

The legacy of inefficient buildings still haunts most cities throughout the world. What are City of Tshwane’s plans to transform such buildings?

Most buildings need some level of alteration to be efficient in order to meet the carbon reduction measures of 80% by 2050. It is important that we lead by example by prioritising buildings for retro-fitting, refurbishment and the introduction of zero-carbon energy-generation technology. Most of this work can be done with the support of the BEA programme, and because of other policies www.alive2green.com/publications/green-economy-journal/

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Sustainable Cities in place like the Embedded Generation Policy Guideline, which encourages the generation of renewable energy for own use.

In June 2017, the City of Tshwane took a monumental step and opened the doors of its brand-new headquarters Tshwane House, a 5-star Green Star rated building. Has this investment put you on the green building map, and what benefits are you reaping from it?

The building symbolises the rebirth of the whole city through innovation, excellence and social cohesion. It directly recognises the cultural history of Tshwane and is also the anchor of a new vision for the city, reflecting the Batho Pele principles and inviting its people to interact with each other and share ideas. Being the first of its kind at a municipal level and achieving a Green Star rating for its design, Tshwane House is the pride of the city. It has put the city and its administration on the map.

Besides its magnificent architectural design, one can say the benefits are the building itself – it offers a healthier work environment with improved air quality, a lot of natural light, great outdoor views and space for people to engage with each other more often.

Additional benefits the City of Tshwane will reap from the investment include monetary savings and environmental benefits from better management of resources such as water, energy and waste.

Legislation is turning more and more towards energy-efficient buildings. What measures are you putting in place to ensure sufficient uptake of the prescribed regulatory standards? What is the contribution of the Green Building By-Law in all of this?

We will be working with a range of stakeholders to educate potential and current building developers on the negative impacts of inefficient buildings, as well as on building standards and codes and why compliance is required. We will also showcase successful pilot projects and encourage the courageous uptake of green building practices by would-be building developers based on the success stories shared.

The City of Tshwane Green Building By-Law – the only green building by-law in South Africa – is currently under revision and will be made more attractive to incentivise green building developers to take it up in Tshwane. A schedule of incentives will be drawn up and communicated widely among significant networks such as Property Owners Association of South Africa (POSA), Green Building Council of South Africa (GBCSA), Green Building Design Group (GBDG), Pretoria Institute of Architects (PIA), Retail Association of South Africa (RASA), national and provincial Public Works departments and the City of Tshwane’s Group Property, which deals with municipal buildings.

Annually the Executive Mayor, Cllr Solly Msimanga, hosts Mayors of African Capital Cities to focus on the co-joined themes of sustainability and responsible leadership

Above: As a sustainability champion, the Executive Mayor hits the streets of the CBD determined to prove that cycling is a viable alternative mode of transport Above right: The Council Chambers of Tshwane House is elegant in its simplicity www.alive2green.com/publications/green-economy-journal/

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city

Green Building

The pulse of a

By: Dorah Modisa, CEO of the Green Building Council (GBCSA)

Cities are at the heart of any nation, and with the rapid increase of urbanisation I have often wondered: How do we make them sustainable and resilient? My previous experience as the head of the City Sustainability Unit at the City of Tshwane (CoT) has given me unique insight into this question.

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have seen how competing mandates for South African municipalities make it difficult for city administrators to directly prioritise sustainability initiatives. However, that is the wrong way of looking at it, because sustainability needs to be integrated into the fabric of decision-making through a series of bold and measurable goals, namely: • Develop spatial plans that are people-focused and take the aspect of liveability and mixed use into consideration.

• Work with National Treasury to review the revenue and incentives structure of municipalities to de-couple city revenue from coalbased electricity income, as this remains a tricky factor in enabling the adoption of renewable energy solutions at local government level.

• Get back to basics and actively engage with citizens, not via a rigid consultation session where a political head would address a group of community members in a town hall, but rather a real activation process where small projects are done at different localities by residents. Such projects create a sense of joint implementation and generate an appetite to do more.

• Get the by-laws and policy frameworks with clear monitoring and verification systems in place. This will ensure focused interventions while providing certainty to the private sector.

• Integrate efficiency savings in all municipal infrastructure programmes, especially electricity supply, water supply, housing development and roads and transport.

Collaboration is key At the GBCSA we work closely with property stakeholders to advance sustainability. This has taught me a few lessons I would like to share with city leaders. Firstly, I would advise city leaders to open their doors and encourage collaboration. The sector is rich with great ideas, there is financial muscle to get more done, and collaborative platforms are a critical piece of the puzzle. Secondly, city leaders need to develop an appetite to be the first at anything and be bold in decision-making. www.alive2green.com/publications/green-economy-journal/

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There are so many examples of how a great decision made with great partners can completely transform city spaces.

The place-making concept The GBCSA has positioned itself as a catalyst and driver of the green building movement – not just in South Africa but across the African continent – and it is a key stakeholder in driving transformation of the built environment. Each year we push the built environment sector further and further towards maximum efficiencies within the green building chain, from the initial decision-making point throughout the construction and operation/use of a building to the ultimate demolition. The GBCSA’s role is more than green building certification standards – we will enhance our efforts in the performance monitoring and continual improvement of buildings and partnership with relevant stakeholders at all stages.

On my daily commute from Pretoria to Johannesburg on the Gautrain, I have gained further insight into what city administrators can do to improve the experience for commuters. Most parts of our cities are not built with people in mind, and through my exploration of the place-making concept I see the need to enhance advocacy for people-centred development, such as improving the design of pavements so that more pedestrians can walk in comfort.

We need well thought-out goals, collaboration, innovation and good governance to shift the experience of the built environment.

While there are quick wins that city leaders and administrators can gain, there is a clear need to begin designing cities around people’s needs – and those of future generations.

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We need well thought-out goals, collaboration, innovation and good governance to shift the experience of the built environment.

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Development

Wetlands offer valuable

ecosystem services By: Thea Buckle

Promoting resilient communities with sustainable local economies is a core focus for ICLEI, an organisation of the world’s largest and oldest global network of cities and subnational governments dedicated to sustainable development. Established in 1990, it serves a movement of over 1 500 cities plus local and subnational governments in over 85 countries across the world. In South Africa they have been working on guidelines for municipal approaches to wetland management – a vital function in the better management of water resources.

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he Local Action for Biodiversity: Wetlands South Africa (LAB: Wetlands SA) Project is one of ICLEI’s flagship projects currently being implemented in nine district and two metropolitan municipalities across South Africa. The project district municipalities are Amathole, Bojanala Platinum, Eden, Ehlanzeni, Frances Baard, iLembe, Overberg, Waterberg and West Rand, and the metropolitan municipalities are Buffalo City and Ekurhuleni. The project is funded by the United States Agency for International Development (USAID).

The value of wetlands The LAB: Wetlands SA Project aims to enhance the protection afforded to wetlands to ensure that the valuable ecosystem services such as flood attenuation, stream flow regulation and water purification that wetlands provide continue to support municipalities across the country. This promotes resilient communities with sustainable local economies in the face of climate change.

The project has three main objectives: 1. Improve local government knowledge and understanding of the value of wetlands.

2. Initiate the process of mainstreaming wetlands into local government planning and decision-making.

3. Develop and implement on-the-ground wetlands projects within the project municipalities.

Raising awareness In action since October 2014, several key deliverables have been achieved. The first set relate to the improved knowledge component of the project and included a Wetlands Awareness Raising Workshop

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and the development of a Wetlands Report for each municipality.

The workshops highlighted the value of wetlands in terms of the services that wetlands naturally provide, and why wetlands should be included in municipal planning.

During these workshops, one of the key concerns raised by stakeholders was a lack of consolidated data to support effective management of wetlands. To address this, ICLEI supported each of the municipalities with developing a Wetlands Report. Each report captures all the freely available wetlands information from various stakeholders in each municipality into one consolidated document.

The Wetlands Reports are important as they not only provide an initial source of information to support planning around wetlands within the municipality but also act as a gap analysis, highlighting what information is still required in order to improve decisionmaking around wetlands.

Strategy and action To achieve the second objective of the project and address the identified gaps in wetland management, ICLEI supported each of the project municipalities with the development of a tailor-made Wetland Strategy and Action Plan (WSAP). These have largely been mainstreamed into the municipal Integrated Development Plans (IDPs) and directly support improved wetland management within each municipality. The process of developing the WSAPs relied heavily on two ICLEI-developed guidelines: the National Biodiversity Strategy and Action Plan Guidelines as well as the Wetland Strategy and Action Plan Guidelines.

In addition to these key project outputs, there are a number still to come which directly benefit municipalities. They include Wetland Management Guidelines as well as Finance Mechanisms (which will www.alive2green.com/publications/green-economy-journal/

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Development

support the development of project proposals for implementing pilot wetlands projects on the ground).

Local action drives global change “ICLEI was founded by cities for cities,” says Kobie Brand, ICLEI Africa’s Regional Director. “We believe that local action drives global change and that the leadership of local and regional governments can make a major difference.

Membership of ICLEI distinguishes a subnational government as a leader in the field of sustainability, but also brings a range of benefits.

These include access to international events, connection to a global cities network, participation in development programmes, as well as to access to ICLEI’s leading tools and resources.

“Underlying all of our work in Africa is an understanding of the shared challenges we face, challenges that require integrated African solutions,” Brand adds. “The tools, techniques, methodologies and services we offer have been developed within the region and refined from global ICLEI practices to suit the African context.”

ICLEI Africa serves its members from offices based in Cape Town and has a growing membership base of more than 100 cities and subnational governments from 22 countries in sub-Saharan Africa. It has a specific focus on urban planning and infrastructure; climate change, energy and resilience; biodiversity and naturebased solutions; water and sanitation and urban food systems. The projects underpinning these themes are designed to strengthen local leadership and promote good governance, foster innovative partnerships and enable new finance options. ICLEI Africa’s work is conducted by a dynamic and passionate team of highly skilled professionals.

For further information on: ICLEI Africa and how to become a member, please visit www.africa.iclei.org The LAB Wetlands SA Project, please visit www.cbc.iclei.org/ project/lab-wetlands-sa www.alive2green.com/publications/green-economy-journal/

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Guidance for cooperation around biodiversity ICLEI and the Secretariat of the United Nations Convention on Biological Diversity have published guidelines to ensure an integrated approach in the development and implementation of national, subnational and local Biodiversity Strategies and Action Plans.

You can download them at: www.cbc.iclei.org/project/bsap-guidelines

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Renewable Energy

REIPPPP: A sign of the future of energy By: Thapelo Motlogeloa

Globally, renewable energy (RE) has gained a great deal of momentum as a result of the changing global energy system we’ve become accustomed to since the beginning of the Industrial Age. There has been an increased uptake of RE technology, including biomass, wind energy, biofuels, solar photovoltaics (PV), hydroelectricity, landfill gas, concentrated solar power (CSP) and geothermal energy. This global transition has been driven by government policy support, cheaper renewable energy technologies and the need to cap and reduce carbon emissions. In South Africa, policymakers’ commitment to reducing carbon emissions at the conference of the parties (COP) has led to the creation of the renewable energy independent power producer procurement programme (REIPPPP).

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outh Africa’s energy generation capacity has been dominated by coal generation, which represents more than 85% of total generation capacity, further supplemented by the only nuclear facility on the continent, the Koeberg power station, which contributes approximately 5% of the country’s total generation capacity. Given the context of the evolving global energy generation model, this presents South Africa and the rest of the continent with the opportunity to adopt newer, cheaper, low-carbon energy generation technologies that are more decentralised compared to conventional generation technologies.

Renewable energy generation now contributes 5% to South Africa’s energy mix, as a result of: • proactive government leadership in procuring renewable energy generation • above-average increases in electricity generated by Eskom • falling renewable energy technology prices • global commitment to reducing carbon emissions.

New procurement model REIPPPP is the policy mechanism the government uses to procure renewable energy generation capacity in a competitive bidding process in line with the national Integrated Resource Plan (IRP).

The procurement programme includes an element of economic development that aims to address and stimulate localisation, job creation, ownership and top management participation and socioeconomic projects. The aim is to create a local diversified export-led energy industry.

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The structure of REIPPPP provides an example of how a country can procure renewable energy at scale, achieving significant tariff decreases with each successive procurement round while attempting to develop a local sector that is inclusive. While this model of procurement has been successful in driving prices down, it represents an opportunity for South Africa to define and begin to implement how it wants our future energy model and sector to look like and operate.

Energy generation becoming more decentralised The current global energy transition is undeniable. Corporations, local and national governments, communities and investors are beginning to realise and act on this current transition. Oil majors are disinvesting in traditional generation technologies, redirecting their capital to renewable and gas energy. Energy generation is becoming more decentralised, and rapid technology advancements are causing battery storage prices to fall at similar rates as that of solar photovoltaics.

By improving current policy mechanisms, South Africa has a great opportunity to build an energy sector that is wholly owned by South Africans and is inclusive at all levels of the value chain. Similar to the creation of the telecoms sector that birthed MTN and Vodacom in the early ’90s, there is a great opportunity to participate in the creation of companies that will scale to that magnitude. To achieve this, the relevant economic participants need to coordinate themselves.

This includes not only policymakers and private capital, but also entrepreneurs, development finance institutions, the Department of Energy and the Department of Trade and Industry. www.alive2green.com/publications/green-economy-journal/

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Renewable Energy

Diversified energy generation The REIPPPP model of procurement and other similar ones offer an opportunity not just for creating a renewable energy sector that is local, and that includes women-owned and black participation, community ownership and involvement. Implemented strategically, these policy tools also ensure that capital is allocated efficiently.

When all economic participants coordinate in a focused strategic way, South Africa can use this model of procurement to create brand-new companies that will be able compete in foreign markets, contribute to the country’s trade balance, and participate in and influence the global narrative.

South Africa’s most recent IRP document and the National Development Plan advocate increased investment in a diversified energy generation mix. This will see higher proportions of renewables and the introduction of gas in the energy generation mix.

Energy as service rather than commodity Global energy trends show us that our future energy plans will have to consider and include the integration of battery storage technologies, electric vehicles, demand management technologies and utility business models that will transition from energy as a commodity to energy as a service.

As we move towards this world, it is important to improve the current economic development policy tools we have and use them to find, fund and support entrepreneurs who have the skills and risk appetite to build these companies. Policymakers, as well as public and private funding institutions, need to coordinate better to ensure that South Africa’s long-term strategic goals are realised.

A future model for energy production Different countries have different strategies and plans about how their future energy systems will look like, influenced by each nation’s www.alive2green.com/publications/green-economy-journal/

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By improving current policy mechanisms, South Africa has a great opportunity to build an energy sector that is wholly owned by South Africans and is inclusive at all levels of the value chain.

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natural resources, geographic location, income levels, education levels, investment in research and development, access to capital, etc. The aim for any country should be to use the most optimal combination of these variables to achieve outcomes that will achieve the most benefit for their economy.

South Africa’s entrepreneurs, investors, financiers, policymakers, education institutions, employees and executives are required to use this global energy transition as an opportunity to responsibly move the country’s energy system to a future model that will be competitive in a global context, contribute to exports, lead to employment opportunities, include community participation, and allow innovation in solving socio-economic development problems.

The current procurement policy model that is implemented in the REIPPPP needs to be refined to intentionally produce these broader country strategic outcomes. It needs to be replicated in other economic sectors to produce new start-ups across the economy that will grow big enough to participate and compete globally at massive scale as the world transitions towards the Fourth Industrial Revolution.

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Production

Do more with less The United Nations’ Sustainable Development Goals (SDGs) were set out in 2015 with the aim of ending poverty and hunger by 2030. These 17 goals recognise the connection between people and planet and show how organisations of all kinds can take steps to address issues of poverty and climate change.

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he National Cleaner Production Centre South Africa (NCPC-SA) set out to show organisations how to use Resource Efficient and Cleaner Production (RECP) principles as an effective tool for meeting and reporting on the SDGs.

What is RECP? Businesses and other organisations that adopt RECP “do more with less”, meaning they increase their materials and energy efficiency, which drives improved productivity. This raises their competitiveness, while at the same time reducing the amount of pollution and waste they generate. All this is directly aligned to the call of the SDGs. A recent NCPC-SA report helps organisations to understand the context of the SDGs and RECP for their businesses and provides them with a guide for implementation of an effective SDG communication plan.

Aligning the Goals with RECP The report looked at each of the 17 goals and highlighted a subset with particular relevance for RECP. Six goals relating to resources, production, industry and climate were prioritised. These were evaluated in terms of the opportunities, risks and activities that require attention from RECP organisations.

In addition to this, one further goal – Decent Work and Economic Growth – was included.

In spite of a relatively lower RECP alignment, this goal’s critical importance from a South African perspective means it deserves special consideration in the manufacturing/RECP context.

Sustainable Development Goal 12 – Responsible Consumption and Production – for example, sets out the objective of decoupling economic growth from natural resource use, which is fundamental to sustainable development. The principles of RECP align to this goal through processes to reduce, reuse and recycle water, raw materials, non-renewable minerals, by-products and waste.

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Benefits for companies Incorporating the SDGs into a corporate communications strategy can have various positive consequences and benefits for a company, including: • Provides a credible and effective lens through which to communicate • Drives reputation • Demonstrates leadership and corporate responsibility • Helps to change behaviours and perceptions • Demonstrates relevance for funders and corporate partners • Shows certain large customers that the company is “on the same page” as they are.

Based on the SDG alignment exercise, NCPC-SA established a framework that companies can follow to develop their own SDG-aligned communications strategy. The framework breaks each of the seven goals down and explains how the various indicators in each Goal can be used to identify or introduce actions or interventions that are relevant and aligned.

The framework explains which items should be included in which (internal and external) communication platforms so as to be most effective.

Reporting on sustainability The NCPC-SA advocates reporting on non-financial performance use globally recognised frameworks or methodologies, as companies that measure these activities are far more likely to implement and maintain successful, sustainable business practices. These companies are also more likely to enjoy reputational benefits and benefit from preferential supplier agreements.

The incorporation of a credible SDG alignment strategy in internal or external communications is itself a form of reporting. By using the Goals to set objectives and measure and manage performance, companies are in effect reporting against the SDGs as a framework. NCPC-SA further encourages the inclusion of SDG-aligned reporting frameworks or standards within any company’s existing sustainability, carbon footprint or integrated reports.

NCPC-SA recognises the power of the SDGs as a unifying global force of positive change. The principles of RECP are meaningfully aligned with the SDGs, and companies that understand and implement an RECP-SDG alignment narrative will be well poised to take advantage of the various associated opportunities. www.alive2green.com/publications/green-economy-journal/

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EVENTS

The African city mayors at Sustainability Week 2017.

Developing resilient African cities

The premier sustainability event for city leaders across Africa takes place from 5-7 June 2018 at the CSIR International Convention Centre (ICC) in the City of Tshwane.

Sustainability Week 2018 covers every angle of sustainable development in Africa – from the macro view of Africa’s capital cities to the micro view of the people impacted by sustainable development.

Africa’s capital cities heed the call The African Capital Cities Sustainability Forum (ACCSF) is a significant part of the overall event and has attracted mayors from Cairo to Kampala, from Windhoek to Ouagadougou, in response to the invitation to be part of a powerful, growing network that has at its centre the vision to achieve sustainable development goals.

This year is no exception, and a diverse array of mayors is expected to share how they are responding to the numerous challenges threatening growth and development in African cities.

Rapid urbanisation, energy and water access and stresses, sanitation, the global economic slowdown, rising unemployment and social inequities, trade facilitation, connectivity, land and biodiversity degradation, and the growing impacts of climate change require shared knowledge and strong innovation to help guide the way to a resilient future.

The audience will have the opportunity to glean the most up-to-date insights for sustainable urban development directly from the leaders of more than 30 African capital cities, all in one day.

Sustainable Cities Africa Whereas the first day of Sustainability Week is about hearing what challenges and opportunities are presented by sustainable urban development, the second day is about how to deal with them. Drawing on the insights derived from the ACCSF, on 6 June Sustainable Cities Africa presents technical solutions to the challenges faced by cities tasked with leading pro-poor, climate-resilient social and economic transformation.

The first session, Financing the City, is about the relationship between responsible leadership and project funding. Making cities safe and sustainable means ensuring access to safe and affordable housing, upgrading slum settlements, investing in public transport, creating green public spaces, and improving urban planning and management in a way that is both participatory and inclusive.

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Sustainable solutions such as public transit systems and energyefficient buildings need a strong financial model behind them to come to life.

The second session, The City of the People, recognises that the more than 200 million people who live in informal human settlements in Africa are vulnerable to poverty, food insecurity, social violence, fire, flooding and disease. For cities to be inclusive, safe, resilient and sustainable, these informal settlements must be upgraded in a way that enhances economic and social opportunities, so that people have access to decent housing as well as decent work.

The third session, The City of Commerce, Industry and Science, focuses on how companies can achieve competitive advantage through balancing sustainable development goals with the highest economic, social and governance performance standards – while fostering the technological innovation that will allow Africa to join the Fourth Industrial Revolution.

Sustainability Week Seminars The third day of Sustainability Week drills down into the practical and technical details of achieving sustainable outcomes in an array of interconnected industries, including energy, water, agriculture, tourism, infrastructure, transport and waste.

This day also hosts the Green Building Council’s eagerly anticipated Green Building Conference, showcasing the latest developments in green building techniques. It’s a particularly appropriate conference for the City of Tshwane, which has embraced green building as part of its commitment to sustainable development (read our interview with Tshwane Mayor Solly Msimanga on page 12).

To find out more about Sustainability Week 2018, visit sustainabilityweek.co.za and www.africancapitalcities.org.

Join the conversation on Facebook @SustainabilityWeekSA and on Twitter @SustainWeekSA. www.alive2green.com/publications/green-economy-journal/

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Waste

Africa’s

Waste Management Crisis By: Dr Linda Godfrey and Claudia Giacovelli

While developed countries around the world strive to decouple development from resource consumption and waste generation, transition to a circular economy, and harness the opportunities of the Fourth Industrial Revolution, developing countries are still grappling with basic waste management issues. Africa is no exception, plagued by a number of challenges compounded by a future of unprecedented growth.

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n 2015, the United Nations Environment Programme (UNEP) launched the first edition of the Global Waste Management Outlook (GWMO).

The Africa Waste Management Outlook provides regional information, including trends, challenges and insights that can be used by the public and private sector to support evidencebased decision-making. While reliable and comprehensive waste data remains a challenge for all African countries, the Africa WMO provides a snapshot of the state of solid waste management on the continent – and a call for action.

The hazards of waste The poor management of waste in Africa is causing significant environmental, social and economic impacts. With average collection coverage of only 55%, municipal solid waste collection services are inadequate in most African countries. Indiscriminate dumping of waste in urban areas is common across Africa, while 19 of the world’s 50 biggest dumpsites are located in Africa, all in sub-Saharan Africa.

Uncontrolled dumping of waste is causing pollution of land and water, with severe impacts on human health and wellbeing. Studies in Africa show that communities living and working in proximity to open dumping of waste display symptoms of respiratory, gastrointestinal and dermatological illnesses, and are at greater risk of contracting diseases such as cholera and malaria. Uncontrolled dumping can also cause direct physical harm. The past year has seen more than 100 people killed in waste landslides – at the Koshe landfill in Addis Ababa, Ethiopia, in March 2017, and the Hulene landfill in Maputo, Mozambique, in February 2018. More than two thirds of those killed were women, many of whom informally picked for food and recyclables.

A growing problem Unless immediate action is taken, these waste management challenges will become increasingly difficult to handle. Africa is set to undergo a major social and economic transformation over the next century as its population explodes, cities urbanise, and consumer purchasing habits change. This is expected to lead to exponential growth in waste generation, which will put considerable strain on already constrained public and private sector waste services and infrastructure. In fact, the rate of growth in waste generation in Africa is expected to be so significant that any decrease in waste generation expected in other regions of the world will be overshadowed.

There is therefore an urgent need for African countries to prioritise the waste management agenda. This will require social and technological innovation, as well as investment in services and infrastructure on a scale never before seen in Africa.

Currently, only 4% of municipal solid waste (MSW) is thought to be recycled in Africa. There is a long road ahead for Africa to realise the GWMO’s vision of achieving “safe disposal of residual waste to sanitary engineered landfills, while maximising the recovery of secondary resources from these waste streams through social and technological innovations appropriate for Africa.”

Growing a secondary resources economy in Africa could unlock millions of dollars of secondary resources into the economy every year. Unlocking these resources back into the African economy creates opportunities to grow and strengthen local manufacturing, thereby creating jobs, addressing unemployment, and building local and regional economies. If done responsibly and sustainably, at the same time it will minimise environmental and human health impacts associated with the current poor solid waste management practices evident across the African continent.

Dr Linda Godfrey is a principal researcher at CSIR, specialising in integrated waste management. Claudia Giacovelli is a project management officer at UNEP, specialising in climate change and waste management. For more information, contact LGodfrey@csir.co.za or claudia.giacovelli@un.org. www.alive2green.com/publications/green-economy-journal/

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Future tech

The Mobility Pioneers event was held at Muffatwerk in Munich in February 2018.

Autonomous driving – just around the corner By: Melissa Baird

I was fortunate enough to attend my second Pioneers event, held in Munich, Germany.

Its focus: Game-changing technologies set to govern the future of mobility. To get there I took a bus from Vienna in Austria, thinking I would use the time to catch up on things. What I didn’t expect was a 10-hour journey complicated by log-jam traffic and punctuated by the bus driver’s union regulations that require him to stop for 30 minutes every six hours no matter what. The journey ended with a road-side stranding in subzero temperatures on a snowy highway just outside of Munich. What would autonomous driving have to offer this crisis, I wondered, and would technology ever be able to outsmart the weather?

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Future tech

About Pioneers Founded in 2009 in Vienna, Pioneers establishes and facilitates direct, meaningful business relationships between start-ups, corporate executives and investors to champion growth and innovation. It is the ultimate one-stop hub for global tech innovators to access high-value, curated and qualified information about new and Series A European start-ups. Its annual flagship event takes place in the 500-year-old Hofburg Imperial Palace in Vienna from 24-25 May. The award-winning event will unite a community of 2 500 founders, investors, executives and public-sector representatives from over 100 nations. www.pioneers.io

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s ever, the organisers of this Pioneers event curated a stage of mind-blowing innovators who are grasping the future with all their imagination and combining blue-sky solutions with the very best of technology to create products and services that will provide a variety of solutions to redefine our concept of mobility. The future looks like a space-age version of the present, with plans for flying cars and artificial intelligence geared up to not only drive you around but map your route, monitor environmental conditions and sort out a few of your administrative tasks like the best PA. Linked to these innovations are increased security interfaces and new solutions for machineto-machine payment that will enable transactions to happen in real time and with absolute transparency thanks to blockchain technology.

The event was opened by European Commission Vice-President Maroš Šefčovič, who leads the project team Energy Union. In a video address, he said: “Thanks to your ideas, today’s kids might never have to learn to drive,” adding: “The concept of car accidents might be something they learn about in their history books. Air pollution could sound like a medieval epidemic to them.”

Certainly, the acceleration towards clean, connected and automated mobility could bring reductions in carbon emissions and an increase in road safety – but how will consumers feel about getting into a car that drives itself?

Rise of the machines More than 20 start-up pitches were presented, each with their own game-changing technology and inspired solutions for the future of transport. The overall winner was Swiss start-up embotech, which has developed software that enables a car to literally drive itself and is already being explored by top vehicle manufacturers in Europe. www.alive2green.com/publications/green-economy-journal/

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Electric cars were also under the spotlight and opinion is that autonomous driving will go hand in hand with electric vehicles, making human drivers obsolete in the process.

In his 2014 book The Rough Ride to the Future, scientist and futurist James Lovelock predicts the role artificial intelligence (AI) will play in changing the face of future humanity, noting how AI is already integral in our lives. He points out that aeroplanes are already able to fly themselves, but consumers can’t accept the fact that no pilot is required – we are not quite ready to hand over to a machine, no matter how smart it is.

Changing consumer perspectives is obvious and key to mass acceptance of the driverless car. Christoph Stadeler, Facebook’s Head of Automotive Strategy, delivered a keynote address reflecting on the role this social media megalith can play. However, with all high-tech solutions the threat of hacking into systems to steal information or conduct fraudulent payments is ever-present. It is dangerous territory, but therein offers opportunities for high-tech security innovations.

Stadeler said that the four main things driving automation are connectivity, electrification, shared mobility and autonomy with the number one interface being your mobile phone. This makes consumer centric software a necessity; consider a smart car that offers a range of digital services with mobility an added extra.

A revolution in transport Peter Campbell, renowned British motoring journalist from the Financial Times, said, “Driverless cars will bring a revolution in transport,” and begs the question: “Why would anyone ever buy a car again?” Consider the freedom of movement these cars will give to the elderly, the disabled and millions of carless commuters, not to mention the reduction in road accidents. Worldwide millions of people are killed every year due to human misjudgement on the roads – could automated cars solve this?

The innovators leading the development of the software for autonomous cars believe so. This new way of driving will soon be making headlines despite the barriers to uptake that currently exist, including outdated legislative rules and regulations that have not caught up with new technology yet. Despite these barriers, my sense is the future of clean, connected and automated mobility is just around the corner.

Future Mobility Pioneers to keep an eye on Electrification winner: ChargeX Electric supercar: Rimac Automobili Connectivity winner: High Mobility Cyber Security: Karamba Security Blockchain technology: Slovakian developers FinID Shared-use technology: Getaway

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Recycling

Partners in

PET

recycling By: Janine Basson

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ETCO, its associate member Oasis Water, and Extrupet – the biggest recycler of PET bottle materials in Africa – are transporting 15 metric tonnes (MT) of baled bottles to the Extrupet facility in Gauteng for processing.

As our nation faces the impact of drought in many of our provinces, the demand for plastic bottles is at an all-time high in the Western Cape because of the convenience PET bottles offer to collect, save and consume bottled water. Local recycling capacity in the province is at maximum production and is unable to process the additional influx of bottles. To prevent PET bottles needlessly ending up in landfills, three companies have joined forces to overcome the challenge.

As PETCO’s contracted recycling partner, Extrupet has a fibreproducing plant in Milnerton in Cape Town and a Bottle-2-Bottle plant in Wadeville, Johannesburg, where recycled PET plastic bottles are used to manufacture new bottles for many food-grade applications or

Naas du Preez (Oasis Water) and Cheri Scholtz (PETCO CEO) in front of baled bottles en route to Johannesburg to be recycled. www.alive2green.com/publications/green-economy-journal/

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Recycling recycled into a myriad of new and useful products such as polyester fibre for duvets and pillows, jeans and T-shirts, and reusable shopping bags. This process has made South Africa a self-sufficient manufacturer of polyester fibre, no longer reliant on imports.

Chandru Wadhwani, Joint Managing Director of Extrupet and PETCO board member, says: “The pressing driver here is to ensure that the extra volume of PET bottles that have found their way to the Western Cape on the back of the water crisis find a home in a recycled product. By way of scale, when we load 15MT of bottles on the truck being sponsored by Oasis Water, that means half a million bottles that will be recycled that otherwise wouldn’t have been. For me this is the ultimate value of this initiative, and companies like Oasis Water need to be commended – they set the perfect example of what extended producer responsibility entails.

But for the support of companies like Oasis Water, these bottles

would ultimately be landfilled, or worse, end up in the oceans.”

Naas du Preez, Group Director of Oasis Water, adds: “With the influx of bottled water into Cape Town, we believe that as a responsible brand we must also assist and be depended upon to take care of the environment, so we have sponsored the transport as a sign of goodwill. We are challenging fellow bottlers and players in the industry to do the same and assist with keeping recycling responsible.”

For the time being, PETCO is monitoring the situation closely to determine whether additional transportation will be needed to ease the burden on the Western Cape’s recycling capacity, and encourages other companies to offer financial support should additional transport become necessary.

For a list of drop-off sites for recycling, visit petco.co.za/droughtrecycling.

The polyethylene terephthalate (PET) recycling company PETCO has made massive strides in increasing recycling rates in South Africa in recent years, resulting in a PET bottle recycling rate of 55% in 2016 – that means more than 90 000 tonnes of PET, or two billion bottles, being recycled each year.

PETCO CEO Cheri Scholtz says this effectively means they are currently recycling more than half of all post-consumer PET bottles in the market, and more bottles are being recycled than those going into landfill. “Through the remarkable network of people, companies and organisations we work with, we created more than 60 000 income opportunities for small and micro-collectors, changing their lives and those of their families in immeasurable ways, and injecting almost R900 million into the economy to date.”

For more information, email janine.basson@petco.co.za, or call 0860 147 738 / 021 794 6300.

Follow PETCO on Twitter, Instagram, YouTube and Facebook: 1isPET.

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Manufacturing Indaba 2018 Attend a one day conference to come to grips with the Fourth Industrial Revolution

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he Sandton Convention Centre in Johannesburg will be abuzz on the 21st June 2018 due to the one day conference that will focus exclusively on the Internet of Things (IoT) and Industry 4.0, otherwise known as the “Fourth Industrial Revolution”.

The event will reveal how these revolutionary technologies impact manufacturers and will provide attendees with the knowledge they need to understand how the latest global trends will affect the manufacturing industry. An annual 12% increase on average is expected on the number of connected Internet of Things (IoT) devices worldwide, which means the current number of approximately 27 billion will increase to 125 billion in 2030.

This emerging IoT movement not only has a significant impact on almost all aspects of the manufacturing industry, but on all facets of the economy as a whole. As the Fourth Industrial Revolution gains momentum, decision-makers from public and private sectors are confronted with a new set of uncertainties regarding the future of production.

Smart technologies are transcending computing capabilities associated with the digital revolution, transforming the physical world through robotics and innovative production methodologies; enhancing human beings on a physical, mental, and experiential front; and permeating the environment to facilitate greater interconnectivity, monitoring, and efficiency of resource utilisation. Rapidly emerging technologies, such as the Internet of Things, Artificial Intelligence (AI), wearables, robotics and additive manufacturing, are spurring the development of new production techniques and business models that will fundamentally transform global production.

Furthermore, these technologies have the capacity to foster new, more distributed and collaborative supply chains. Together, the speed and scope of change contribute to the complexity of existing challenges associated with the tasks of developing and implementing industrial strategies that promote productivity and inclusive growth.* As the premise of this year’s conference, discussions centered around IoT will cover the fundamentals of connect, collect, compute and create, highlighting how manufacturers can capitalise on these innovations to optimise operations, create unique business models and solutions and enhance their ability to collate and use data through advanced, autonomous computation methodologies. * Source - Insight report World Economic Forum – Readiness for the Future of Production to launch IoT / Industry 4.0 Conference. www.alive2green.com/publications/green-economy-journal/

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Investment

Making capital great again By: Carl Reynolds

The much maligned “capitalist system” is blamed for pretty much everything that goes wrong in the world, and to be sure it is guilty of plenty yet is not often recognised for the progress and general good we benefit from daily. That it has been twisted and manipulated for the benefit of a few is obvious, and clearly this needs to be rectified.

However, the system might not be to blame – and indeed could offer up a solution.

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onsider that capital used to be nothing more than livestock, land and gold. Any endeavour to employ these was in the interest of addressing a (largely) social issue or need. In the absence of a welfare state, the owners of the capital were vested in the pursuit of a sustainable social structure. Communities, employers, families and individuals relied on each other for support and survival.

The corruption of this system can broadly (with apologies for brevity) be ascribed to the pursuit of unlimited profit without accountability for failures. Social and community values became separated from capital in the pursuit of profit.

The question is: How do we get back to a financial system that serves society effectively – and how long will this take?

Underpinning the answer is behaviour change, which is never really achieved without decent incentivisation.

Enter ESG ESG refers to the environmental, social and corporate governance aspects of any business. To a large degree this has always been considered as separate and secondary to the financial performance of a company – particularly when the pressure from financial markets, which invest in companies, is focused on short-term results.

Companies are also legally beholden only to their shareholders, not society as a whole. In the interest of short-term performance measurement, companies are often called upon to make decisions that have negative environmental or social impacts. (This particular problem is being effectively addressed by the B Corp movement. B Corps are for-profit companies certified by the non-profit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. Read more at www.bcorporation.net.)

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The origins of ESG It can be traced as far back as the early church policies of negative screening for their portfolios (no gambling, no alcohol, etc). However, it really came into the spotlight in the ’80s during the Exxon Valdez oil disaster when shareholders began asking questions about how to avoid future incidents and risk to share value. The sanctions against South Africa during the apartheid era are also a prime example of this thinking. The United Nations-supported Principles for Responsible Investment (PRI) Initiative is an international network of investors working together to put the six Principles for Responsible Investment into practice. Today UNPRI boasts a membership representing assets under management in excess of US$70 trillion – up from US$5 trillion a mere 10 years ago!

Find out more at www.unpri.org/pri.

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A company committed to the sustainability journey will be more efficient and more resilient to change and therefore a better investment in the long run.

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Development Purpose and profit Good corporate citizenry does exist, and many companies are either purpose-driven or have excellent leadership with an interest in more than just their own bottom line. Things got very interesting when data started being tracked around the financial performance of companies with high levels of ESG awareness and management as opposed to those without. Slowly the case emerges and the evidence grows increasingly convincing that active ESG management can be directly linked to superior financial performance. Here we have the ingredients for an incentivisation strategy that considers purpose as well as profit – a truly exciting prospect.

Responsible investment The responsible investment movement is growing, and more funds are seeing the opportunities for superior returns as well as making a lasting and positive impact on the world. These banks, pension and investment funds employ ESG criteria to a much greater extent than in the past. As the movement expands, so do the support structures around it as well as the various tools for enabling responsible investment practices.

The investment world has most certainly become more interesting in the past few years, with funds identifying areas of particular interest for maximum impact, and industries and regions developing their own ESG identities, so we have to develop ESG strategies and tools to cater for them. Green bonds and social or environmental impact bonds are some of the innovative financial structures emerging to deal with very specific challenges such as climate change, energy and social issues.

Increased efficiency and resilience ESG indicators are varied and numerous. The key to any successful strategy is materiality, and tracking the issues that matter to your business, which will inevitably vary from case to case. The result will always be the same, however – a company that is more in tune with its broader stakeholder base. A company committed to the sustainability journey will be more efficient and more resilient to change and therefore a better investment in the long run. The logic is clear: Investors not paying due attention to ESG management within their portfolios are not taking their fiduciary duties seriously.

The evidence is overwhelming. The tools are available. The groundswell of demand for change in society is deafening. Not only has capital become way more sexy, it is most probably the single most transformative power of our time.

KudosAfrica This sustainability rating and services provider is focused on African businesses. Their goal is to direct investment capital towards responsible and sustainable African enterprises by encouraging companies to improve their ESG performance.

KudosAfrica has developed a unique rating methodology, incorporating international best practice, in the assessment of sustainability. It enables existing unlisted businesses to address the need for increased ESG awareness and management while making them more profitable and attractive to the investment world.

Find out more at www.kudosafrica.com.

www.alive2green.com/publications/green-economy-journal/

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Agriculture

Something old =

Something new Leading biodynamic wine estate Avondale, situated on the slopes of the Klein Drakenstein Mountains to the south of Paarl in the Western Cape, has become the first winery in South Africa to introduce ancient practice of Qvevri into the cellar. This marks another milestone on this family-owned winery’s pioneering journey of sustainable organic viticulture and natural winemaking, with the slogan “Slow wines, naturally made”.

We spoke to proprietor Johnathan Grieve about this unique method of fermentation and discovered a whole lot more about organic, biodynamic wine farming.

You’ve introduced the ancient practice of fermenting your wines in clay vessels called Qvevri to your cellar – please describe this process and how it differs from the modern approach?

Most wineries ferment in closed stainless steel containers that prevent oxygen penetration into the wine and at the same time reduce any risk of spoiling the wines by over-oxygenation. Stainless steel is easily available, can be built to size, and most importantly be manufactured to huge specifications. Qvevri vessels, on the other hand, are much smaller, hand-crafted, and produced by only a handful of masters in the world.

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The difference from a fermentation perspective is that in Qvevri’s case the clay is porous, allowing oxygen to penetrate the wine during fermentation and ageing. This in turn allows the development of both tannin structure and flavour spectrums that you would not get in the modern materials communally found in wineries.

The other commonly used vessels that have a similar process of microoxygenation as Qvevri are oak barrels. The major difference, however, is that these barrels impart the oak character to the wines. Qvevri does not have this influence, but rather allows the grape flavours to shine – and the end result is wines with really bright fruit and clarity.

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Agriculture

Avondale is a leading biodynamic estate producing some of our best naturally made wines from organic viticulture practices. What are some of the defining practices that differentiate yours from ‘conventional viticulture’ as practiced elsewhere in the Western Cape?

At Avondale we practise sustainable and natural viticulture in line with our ethos Terra Est Vita – Soil is Life. We know that for the land and the business to thrive, every aspect of our living system must also thrive. In everything that we do, we uphold the key principle of Life.

We grow our vines in one-hectare blocks where cultivars are matched to soil types. Soils are balanced and re-mineralised according the particular block of vines’ specific nutritional needs, and blocks are irrigated separately based on their requirements. The focus of all this careful individual attention is on quality, not quantity. We never pressurise our vines or employ stressful practices to boost the vineyards’ outputs. Each hectare block yields between four and eight tonnes of balanced, healthy grapes, providing us with the ideal fruits to make premium quality, extraordinary wines approved by Mother Nature.

As with all clay amphorae, or vessels, natural micro-oxygenation is a key aspect of working with Qvevri. Although Qvevri’s lower firing temperature makes the vessels more porous, this is countered by the application of a beeswax lining, and the fact that each Qvevri is buried in soil for stability.

The Qvevri at Avondale each hold between 800 and 1 000 litres, and because they are handmade vessels each one is unique and slightly different in shape and size. We have learned from the amphorae and fermenting our Chenin Blanc in three ways: whole-bunch, de-stemmed with skins, and lastly pure-pressed juice. Naturally the reds will only make use of whole-bunch and de-stemmed methods. For now we’re really enjoying experimenting to see what characters the Qvevri bring to the wine.

The Qvevri are new for us, but they are also a progression from our use of locally hand-crafted clay amphora, which we have been utilising for years, and tie in perfectly with our natural winemaking philosophy.

What are the distinguishing qualities this approach brings to the wine?

There are major differences in the end result for the wines fermented in Qvevri. The main one is that it allows Avondale to really champion the fruit-driven quality of the grapes. This means that the wines coming from the Qvevri are beautifully elegant and show huge amounts of bright fruit character underpinned by the core minerality of the grapes.

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We know that for the land and the business to thrive, every aspect of our living system must also thrive.

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Agriculture

Organic and biodynamic viticulture entails that there is no synthetic chemicals or fertilisers used in our production – rather, we work with nature to get the desired results. There many examples of using nature to do the work for us, but the most obvious of this is our use of a flock of ducks to control snails on the estate.

Although Avondale is definitely an organic farm, we go even further than that, in that we adhere to a system called biodynamics. Biodynamic agriculture is a method of organic farming that was originally developed by the 19th-century Austrian philosopher, social reformer, architect and esotericist Rudolf Steiner. It employs a holistic understanding of agricultural processes and treats soil fertility and plant growth as ecologically interrelated tasks.

Although biodynamics also emphasises the use of manures and composts and excludes the use of artificial chemicals on soil and plants, the approach includes the utilisation of energies and an astrological sowing and planting calendar in order to utilise the natural rhythms of the universe.

Our natural system is based on three pillars – organics, biodynamics and modern science.

Avondale’s BioLOGIC® farming combines these three pillars, starting with the soil and working towards creating a balance that will sustain both macro elements and micro life in the soil. So, although we are certified organic and practise biodynamic agriculture, we go beyond both these beneficial systems of natural farming by also using the best 21st-century science, technology and knowledge to enhance sustainability.

Our state-of-the-art, 500-ton capacity cellar was built three storeys deep in a dry riverbed. It is a gravity-flow facility that ensures the grapes are moved with the minimum of mechanical intervention.

Our cellar is specially designed to receive and vinify the harvests of each separate block. This enables us to fine-tune the ageing and blending of our wines in an exceptional way.

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We have no need to regulate or adjust our wines in any artificial way, so no enzymes, catalysing agents or softeners are used in the production of Avondale wines. We make use of only natural yeast fermentation and adhere to strict international organic certification standards.

Meticulous processing enables us to make wines that are particularly low in sulphur – less than half the norm – and all our wines are vegan friendly.

We practice slow wine-making that gives our wines the time they need to develop to their fullest potential. This ensures that by the time they reach the wine-lover, they are immediately accessible and delicious, while still bold enough in stamina and character to enjoy a long life in the bottle.

We are inspired to handcraft our organically made, premium-quality wines to ultimately offer customers an extraordinary experience approved

by Mother Nature.

How does the addition of Qvevri into your wine-making integrate with your biodynamic and natural philosophy?

Qvevri is new for us, but it is also a progression from our use of locally hand-crafted clay amphorae, which we have been utilising for years, and tie in perfectly with our natural wine-making philosophy.

Years ago, we dug up clay on the farm and got a local potter to handcraft and fire our first amphorae. Nothing suits Avondale’s ethos of slow, traditional wine-making better than these clay vessels, hewn from the earth, with a heritage that stretches back thousands of years to Ancient Greece and Rome. Using Qvevri is a natural continuation of his project Qvevri, or amphorae, are the original vessels wine were made in thousands of years ago. Because they are made from clay, hand-crafted and allow micro-oxygenation to occur, it enhances the purity of fruit in the wines. The vessels allow the grapes to be the star of the show, nurture the fruit/minerality, and most importantly creates truly bright wines. www.alive2green.com/publications/green-economy-journal/

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Agriculture Amphora wines make a notable, fruit-driven contribution to a number of Avondale’s premium wines, such as Cyclus 2014, which has a 20% portion of amphora wine, and Anima 2015, which has a 15% portion of amphora wine.

These accreditations have definitely opened certain markets for us. In these markets you have to have third-party certification, but other markets are more interested in the quality of the product.

Has the adoption of these more authentic and natural approaches been well received by your markets, and will the addition of Qvevri resonate with your customers?

It’s been an incredible journey from being a conventional producer 20 years ago to the organic and biodynamic approach we have today. At the start we shifted our philosophies because we felt it was the best way to get true character and individual wines that express where they are form. This was before organic became a big trend and it’s been amazing to see how the trend has grown and shows no signs of slowing down.

The Qvevri and natural philosophy simply enhance what we are currently doing. We’ve already seen the huge interest in the wines and the overall natural approach to what is Avondale.

Do you see your approach at Avondale as continuing to be unique in the Western Cape, giving you a competitive advantage, or are you laying down a blueprint for others to follow, perhaps believing that ecologically intelligent wines considerately farmed and produced according to time-honoured methods could become what defines and differentiates the whole region in the future?

I believe Avondale will always be unique and different as we continue to build our natural approach, always adding and developing the methodology of producing extraordinary wines approved by Mother Nature.

This said, I would like to think there are a lot of lessons to be learned on how to farm naturally. In this regard we do various educational tours, lectures and sharing of knowledge through my blog, www.biologicwine. co.za . The blog is a platform to post various topics and practical knowledge on how we farm. We believe that the closer we get to nature the better the end product will be, and of course we would like all farmers to have access to learn from our experiences and lessons.

Avondale also offers various experiences on the estate so that each and every one of our customers can come and learn from what we do, ranging from tastings to eco-wine safaris, which consist of a tour through the farm to meet our ducks and their Duck Mobile, through to cellar tours and seeing the Qvevri while sampling the produce. Naturally this can all be followed by either lunch or dinner at FABER, our farm-to-table dining experience.

Have you sought globally recognised accreditations, and to what extent have these certifications assisted you with wine sales in SA and abroad?

Our holistic way of working with nature ensures that Avondale’s 100 hectares of vineyards meet the global standards for organic farming accreditation. The Dutch-based company Control Union, one of Europe’s leading certification authorities, independently audits and certifies both Avondale’s vineyards and cellar. Avondale is accredited according to two organic standards – the USDA NOP for the United States and EU organic regulation for the EU.

Find us at Lustigan Road, Klein Drakenstein, Paarl GPS Coordinates: 33°45’55.92”South x 19°00’04.50”EAST Phone: +27 21 863 1976 Email: wine@avondalewine.co.za You are welcome from Monday to Sunday: 10h00 – 16h00

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Dr Reckson Mulidzi, Research Team Manager: Soil & Water Science at ARC Infruitec-Nietvoorbij, showing cash crops irrigated with treated winery wastewater.

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