Green Economy Journal Issue 48 by GreenEconomyMedia

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BUILDING RESILIENCE Food Systems and Future Shocks CORPORATE SUSTAINABILITY: Putting it in practice FUNDING THE SUN: PPA vs Cash SHEDDING THE LOAD: SA residential energy use

ISSUE 48 | 2021

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PUBLISHER’S NOTE Dear Reader, News this past week, ending Friday 10 September: • RMIPPPP financial close date extended again • DNG litigation postponement granted • New litigation launched by local solar panel assembler complaining of decisions by the DMRE and dtic resulting in an unfair outcome. We are so close to triggering these massive investments into renewables, storage, and gas – and yet so far. The key question is can projects, other than Karpowership’s three projects that are named specifically as a respondent in the DNG application, close in the presence of the DNG application not having been resolved? Surely, the answer will be yes. Because if they lose no one is affected, and if they win, it’s up to the DMRE and Karpowership to appeal or act in accordance with the order. Why should the other bidders be affected? Meanwhile, the new Suntec matter is opening somewhat of a pandora’s box for the DMRE and dtic. Preferred bidder IPPs would all rather procure 100% Chinese-produced panels, because they are cheaper than locally assembled panels. As its widely accepted that the South African assemblers simply cannot meet the full demand for solar panels under the RMIPPPP, IPPs are staring each other down, to see who buckles first and places orders with the expensive South African suppliers, and thereby use up the full available capacity. They are hoping that once local capacity is fully booked by others, they will be allowed to go ahead and order from China. Some people have argued that the DMRE should step in to facilitate a solution. After all, it was their own government’s halt on the REIPPPP that led to many local panel assemblers closing and leaving the country, thus leading to a shortage on local capacity. Suntec Solar now seeks the intervention of the courts, to address what it alleges are unlawful exemptions giving rise to unfair and uncompetitive outcomes between solar panel suppliers.

Gordon Brown, Publisher

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EDITOR: Alexis Knipe alexis@greeneconomy.media JOINT PUBLISHER AND PRODUCER: Gordon Brown gordon@greeneconomy.media JOINT PUBLISHER AND PRODUCER: Danielle Solomons danielle@greeneconomy.media

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EDITOR’S NOTE Commentators are focusing on how governments go about rebuilding their economies once the world has passed through the Covid Crisis. Llewellyn van Wyk tells us The Economist analysts caution that to focus on the quantitative changes only misses something crucial, which is that there are important qualitative changes underway in how policymakers manage the economy. On these measures, the analysts note, the world is in the early stages of a “revolution in economic policymaking” (page 8). Sustainable finance is essential for inclusive growth, as it encompasses both the concepts of green and socially focused finance. Locally, at an intergovernmental level, the Treasury approach is to integrate climate responsiveness into provincial and municipal planning. Read Financing a Sustainable Economy (page 12) and on page 14, we help to make sense of what sustainability should mean in practice. With the adoption of solar PV by businesses now mainstream, a significant consideration for these companies is selecting the most appropriate funding option for their solar project. See page 38 for a comparison on PPAs and cash purchases for solar systems – and the article will lead you to a good read on how solar PV affects the value of your home. Please enter our Read Report boxes to find a wealth of sustaining knowledge streams. Enjoy!

Alexis Knipe, Editor

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.

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NEWS & SNIPPETS

AGRI-FOOD Food security in SA: people, plants and planet

MOBILITY Toyota RAV-4 goes Hybrid

HOUGHT T LEADERSHIP

How to put it back together again

RESPONSIBLE INVESTING

Financing a sustainable economy

14 16

Making sense of sustainability SMART CITIES

Lanseria Airport: set for new heights

mart cities promote S best practice in sustainability

31 32

wartland: use wood S and save trees

Quality testing for the agricultural industry by the Southern African Grain Laboratory NPC

SMART MINING To be ORE not to be

36 38

ENERGY Funding the sun

20 22

WATER Dams: half full or half empty?

ENERGY The role of women in SA’s energy space

PRODUCTION Meet NCPC excellence in resource efficiency

To path to being better stewards of the earth by SRK Consulting

40 41

Smart solutions for people and planet by Veolia Services

From bits to watts

POWER

Residential electricity consumption in SA

CIRCULARITY Waste heat to electricity

WASTE The road to sustainability

SA prepares for Clean-up and Recycling SA Week with Plastics SA

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NEWS & SNIPPETS

RIP NTOMBIFUTHI NTULI SAWEA and the sector, at large, mourns the loss of Princess Ntombifuthi Ntuli, CEO of SAWEA. Fondly known as Ntombi, she leaves behind two young children and an extended family who will no doubt feel the full extent of this loss. Ntombifuthi has steered the wind power sector in her leadership role. During this time, she drew on her depth of knowledge and talents, and crafted over more than 15 years in the energy and related sectors. Ntombifuthi’s leadership was defined by her charismatic yet gentle nature, resilience and determination to successfully steer the industry towards playing a central role in South Africa’s energy transition, while being a uniting force. She built strong bridges throughout the energy sector, founded on her sound logic

JO JOs FOR JOZI

and ability to see the bigger picture. Her lobbying efforts for the country’s transition to cleaner power were underpinned by supportive government policy and smooth procurement, which will help to ensure the sector’s exponential growth for years to come. Her legacy will live on not only through her successes, but also in the hearts of the people that make up this industry. “Ntombi changed the face of the wind industry in our country. She made the industry relatable with her ability to engage with the most stubborn naysayer, helping them to see her point of view and winning everyone over with her charming smile and her calm strength,” said Mercia Grimbeek, Chair of SAWEA. Green Economy Journal extends our heartfelt condolences to Ntombifuthi Ntuli’s friends and family.

CITY CALLS CITIZENS TO CLIMATE ACTION Cape Town has encouraged residents and businesses to join their climate action movement following their recently released Climate Change Strategy. This is to adapt to the impacts of climate change, mitigate climate change, significantly reduce carbon emissions and harness opportunities of the green economy. A few of their mitigation efforts to reduce carbon emissions include driving energy efficiency in municipal operations, moving towards net-zero carbon buildings, procuring energy from Independent Power Producers (IPPs), reducing and diverting waste and building an efficient transport network. Courtesy: Cape Argus

THE BEST MEGAWATT

Joburg Water says its system is under severe pressure, with water demand consistently exceeding supply. Reservoirs are affected across the Gauteng region. Spokesperson, Eleanor Mavimbela, said that the intermittent water supply would continue indefinitely. “Citizens of the City of Johannesburg are urged to use water sparingly as the city is still under level one water restrictions.” Courtesy: Eye Witness News

BY BARRY BREDENKAMP, SANEDI

As the country focuses on improved energy capacity, energy savings must not be forgotten. The IEA regards energy efficiency as the “first fuel”, and we should strive to save every possible kWh before adding new generating capacity. Companies must prioritise energy savings, not just self-generation. While I agree that the new 100MW threshold is great news for the stability of supply and our economic potential, I would like to see every installation targeting a baseline load of 110MW. My take is that there is at least 10% energy savings potential on the demand side of the meter at virtually all proposed installations, before adding additional supply-side capacity. The more energy (consumption) we avoid or save, the smaller the size of the load required to operate those end-use technologies. We urge project developers not to lose focus on first exploring the energy efficiency potential, by setting an “internal” target to save 10MW of electricity for every 100MW of renewable power generation capacity installed. All new build projects come with an environmental cost. Even clean energy projects come with a carbon footprint. If you consider the manufacture and transport of every component required for a solar farm, you can understand how this will add up when companies across the country adopt generation plants. Added to that, it is cheaper to save energy than to generate it. Building new generation capacity is a big investment, regardless of the energy source. There are additional cost and environmental savings to be gained by including energy efficiency in the overall mix. Regardless of how and where power is generated, someone still pays for the megawatt consumed, whereas the avoided megawatt is “free”. In my opinion, the best megawatt is the megawatt not used.

NEWS & SNIPPETS

THE BIG 4 ACCOUNTING FIRMS BALANCE ESG PwC put the demand for ESG advice at the heart of a $12-billion investment plan it recently announced that involves adding 100 000 employees and launching “trust institutes” to train clients in ethics. Deloitte announced a “climate learning programme” for its 330 000 employees. KPMG’s ESG work has included helping Ikea to analyse social and environmental risks linked to the Swedish furniture retailer’s raw materials and advising on the first green bond issued in India. Alongside EY, all four have been at the table as business groups try to thrash out new international standards for measuring sustainability. Courtesy: Financial Times

CO2 LEVELS AFFECT DUNG BEETLES A new study led by Wits University postdoctoral researcher, Dr Claudia Tocco, provides evidence that elevated CO2 levels directly affects the development and survival of tunnelling dung beetles. The study, published in the international journal, Global Change Biology, presents a possible explanation for the current “insect apocalypse” – a global decline in insect populations that is still not well understood. “When raised under CO2 levels predicted for the year 2070, a third fewer beetles emerged and were 14% smaller in size when compared to pre-industrial CO2 levels,” says Tocco. Courtesy: Wits University

UCT AND SASOL: CATALYSTS FOR GREEN JET FUEL The UCT and Sasol have made advancements in the use of commercial iron catalyst, produced cheaply and at large scale at Sasol’s Secunda plant, which would enable conversion of unavoidable or biogenically-derived CO₂ and green hydrogen directly to a variety of green chemicals. The companies said in a statement that the collaboration had revealed that Sasol’s iron catalyst could achieve CO₂ conversions greater than 40%, producing ethylene and light olefins, which could be used as chemical feedstocks, and significant quantities of kerosene-range hydrocarbons (jet fuel). “Conversion of green hydrogen together with CO₂, a process called CO₂ hydrogenation, is gaining significant interest worldwide and is a promising way to produce sustainable aviation fuels and chemicals which have a significantly lower carbon footprint,” says Dr Cathy Dwyer, the vice president: Science Research at Sasol Research and Technology. Courtesy: Business Report

WHEN I GROW UP This is a book about 21 people who are working in clean energy; what they all have in common is that they are passionate about their job, and work on tackling the climate crisis. Meet Swarna who studies the wind to put her turbines in the best locations; Nicolas who flies drones to check for cracks in the blades; and Jos who builds playgrounds from old wind turbines. There are people from all continents who will tell you about their clean energy jobs, what subjects they studied and the skills they needed to be able to do what they do now. SAWEA Chair, Mercia Grimbeek has contributed to @WindEurope’s latest children’s book.

RENEWABLE POWER The City of Cape Town is looking at options to develop Athlone Power Station. Mayco member for Energy and Climate Change, Phindile Maxiti, said the site was considered unsuitable for mixed-use residential purposes, so the emphasis had shifted to looking at uses in line with its existing permit, including for energy and/or industrial use, particularly considering the emerging energy crisis. The power station was decommissioned in 2003 as it was no longer economically viable. Finance and Economic Opportunities MEC David Maynier said the department was collaborating with the City and welcomed its announcement of a Request For Information (RFI) for funding and financing instrument solutions for its Renewable Energy Programme. “This RFI is aimed at development banks and multilateral development funds for projects that the City will own and operate, located on city-owned land and buildings (typically within the City distribution grid), ranging in size from less than 1MW to 100MW per project, with the potential to explore larger-scale projects connected to Eskom’s network.” Courtesy: Shakirah Thebus, Cape Argus

MOBILITY

RAV4

Goes Hybrid 6

Hybrid: noun [hy·brid] a term introduced to the automotive world by Toyota to identify a dual-source powertrain combining a traditional internal combustion petrol engine with a high-current electric motor.

MOBILITY

his revolutionary powertrain technology debuted in 1997 in the Toyota Prius. While the Prius has undoubtedly been the poster child for Hybrid, Toyota has recognised the need to expand this new energy technology to other mainstream model ranges – in pursuit of greater Hybrid adoption and wider market appeal. Recent developments in the global motoring arena have placed a far greater emphasis on New Energy Vehicles (NEV) and alternative propulsion technologies. With the continued development of new energy alternatives and further advancements of battery technology, customers are seeking more advanced drivetrain options and greater levels of efficiency without compromising on their core vehicle requirements. This is where Toyota’s NEV roadmap kicks in. Branded “Towards Carbon Neutral”, this all-encompassing environmental strategy has as its goal, to get to zero emissions by 2050, but with several intermediate milestones in between. And here we’re not just talking emissions produced by a vehicle, Toyota plans to be emission-free throughout the production process (not just for Toyota but our suppliers as well). To this end Toyota South Africa has an initial plan to roll out Hybrid variants on most of its mainstream model ranges. The big news will be the introduction of the locally produced Corolla Cross (in petrol and Hybrid) as from November this year. This, however, is just the start of the electrification programme – the full spectrum of NEVs will be launched when there is sufficient demand and when the infrastructure can support their introduction (watch this space).

The Hybrid pays dividends at the fuel pump too, as the model’s fuel consumption index is listed at mere 4.7 l/100km with CO2 emissions registering 107g/km. A remarkable consumption figure for a 5-seater SUV.

Making Hybrid mainstream

Toyota insignia, Hybrid badging and mud guards also form part of the standard repertoire.

With this change in customer behaviour, we are excited to introduce Hybrid variants of two of our most popular passenger cars – Corolla and RAV4. Both Corolla and RAV4 Hybrid are a first for South Africa and combine all the virtues of their conventional namesakes with the added performance and fuel efficiency of Toyota’s proven Hybrid system.

The RAV4 Hybrid Based on Toyota’s angular fifth-generation sport utility, the RAV4 Hybrid combines a punchy 2.5-litre Hybrid powertrain with the popular TNGAbased 5-seater SUV. The A25A-FXS engine is shared with other global Toyota and Lexus stablemates, such as the Lexus ES and NX300h and the acclaimed Camry Hybrid. It boasts many of the same technologies shared by the Corolla Hybrid, in a larger displacement four-cylinder offering. Featuring an “undersquare” design with Toyota D-4S port and direct-injection, the Atkinson cycle engine generates 131kW and 221Nm in “ICE” state. The electric motor punches out 88kW and 202Nm (at maximum state of charge) to deliver a total system output of 160kW. Power is transmitted to the front wheels via a CVT transmission, which seamlessly integrates the two drive sources – and delivers an ultra-refined drive. Smooth punchy acceleration, low NVH levels and superb refinement, are some of the standout features of the RAV4 Hybrid.

One grade, one spec The RAV4 Hybrid is offered in tweaked GX trim – which strikes a balance between core convenience spec, value for money and luxury convenience. The RAV4 Hybrid boasts LED head and taillamps complete with DRLs up front, rain-sensing wipers, heated and power-operated side mirrors and keyless entry. Occupants are well catered for with dual-zone climate control, three 12-volt power outlets and multiple cupholders. Driver convenience is boosted Cruise Control, an auto-dimming rear-view mirror, multi-information display and a tilt and telescopic steering wheel finished in leather and incorporating steering switches. The infotainment system centres around Toyota’s touchscreen interface, delivering sound output through six speakers while interfacing via three USB inputs, Bluetooth and Apple CarPlay/Android Auto mediums. Driver support systems include Park Distance Control (PDC), ABS, EBD, VSC, Trailer Sway Control (TSC), Hill Assist Control (HAC) and Drive Mode Select (Eco/Normal/Power). A full complement of airbags is present, including side and curtain variants, as well as an anti-theft system. The RAV4 Hybrid rides on 17-inch alloy wheels with 225-65-R17 rubber joined by a full-size spare wheel. Roof rails, a rear spoiler, blue

Colours and coverings A total of eight exterior hues are available: Glacier White, Pearl White, Chromium Silver, Graphite Grey, Caribbean Blue, Cinnabar Red, Urban Khaki and Moonlight Ocean metallic. The interior is finished off in a textured-black textile trim.

Pricing package RAV4 GX Hybrid CVT: R555 300 The pricing has been set at a very competitive level in anticipation of future government support on New Energy Vehicles (NEV). Toyota South Africa Motors’ strategy is to make Hybrid models attainable and offer customers an attractive product package – leveraging the benefits of Hybrid technology – without paying significant premiums in order to experience it.

Peace of mind A six-services or 90 000km service plan is standard with service intervals pegged at 15 000km/12-months. Toyota’s standard three-year/100 000km warranty is included and customers have the additional peace of mind of an eight-year/195 000km Hybrid battery warranty. Service and warranty plan extensions can also be purchased from any Toyota dealer (220 outlets).

THOUGHT LEADERSHIP

How To Put It

BACK TOGETHER AGAIN Humpty Dumpty sat on a wall, Humpty Dumpty had a great fall. Four-score Men and Four-score more, Could not make Humpty Dumpty where he was before Samuel Arnold Juveline Amusements, 17971 BY LLEWELLYN VAN WYK, B. ARCH; MSC. (APPLIED), URBAN ANALYST

umpty Dumpty is a character in an English nursery rhyme, probably originally a riddle and one of the best known in the English-speaking world. He is typically portrayed as an anthropomorphic egg, though he is not explicitly described as such. Its origins are obscure, and several theories have been advanced to suggest original meanings. I thought it particularly appropriate to describe the following article – what are the impacts of Covid on the global economy and how does it recover.

Impact and Response Many commentators and economists are focusing on how governments go about rebuilding their national and city economies once the world has passed through what Christopher Joye calls the Global Virus Crisis (GVC). 2 According to The Economist, policy response has generally been swift and decisive.3 Globally central banks have cut interest rates since January 2020 and have launched new and substantial quantitative-easing schemes

(creating money to buy bonds) while politicians are opening the fiscal taps to support the economy. In the US, America’s Congress passed a bill that boosts spending by twice as much as President Barack Obama’s package in 2009. Britain, France, and other countries have made credit guarantees worth as much as 15% of GDP, seeking to prevent a cascade of defaults. On the most conservative measure, the global stimulus from government spending this year will exceed 2% of global GDP, a much bigger push than was seen in 2007-09. Even Germany, whose fiscal rectitude is a cultural cliché, is spending more.4 The analysts at The Economist caution though that to focus just on the quantitative changes misses something crucial which is that there are important qualitative changes under way in how policymakers manage the economy – the responsibilities they have assumed for themselves, what is seen as a legitimate action and what is not, and the criteria used to judge policy success or failure. On these measures, the analysts note,

THOUGHT LEADERSHIP

the world is in the early stages of a “revolution in economic policymaking”. Central banks have in effect pledged to print as much money as necessary to keep down government-borrowing costs. The European Central Bank is promising to buy everything that governments might issue thereby reducing the gap in borrowing costs between weaker and stronger euro-zone members, which widened in the early days of the pandemic.

Main Street assistance programme in the history of the United States”, comparing it favourably with Wall Street bailouts a decade ago. To that end the analysts note that governments across the rich world are channelling vast sums to firms, providing them with grants and cheap loans to preserve jobs and keep their doors open. In some cases, the government is paying the wages of people who cannot work safely: the EU has embraced this policy, while the British state will pay up to 80% of the wages of furloughed workers. The American package includes loans to small businesses that will be forgiven if workers are not laid off. Households across the rich world are being given temporary relief on mortgages, other debts, rent and utility bills. In America people will also be sent cheques worth up to $1 200. Most economists support these measures. Nominally they are temporary, designed to hold the economy in an induced coma until the pandemic passes, at which point the world is supposed to revert to the status quo ante. But history suggests that a return to pre-Covid-19 days is unlikely.

The analysts note that politicians, too, are ripping up the rulebook. In past recessions enterprises could go bankrupt and people too become unemployed. Even in normal economic times, roughly 8% of businesses in OECD countries go under each year, while 10% or so of the workforce lose a job. Now governments hope to stop this from happening entirely. President Emmanuel Macron reflects the view of many when he vows that no firm will “face the risk of bankruptcy” because of the pandemic. Boris Johnson, Britain’s prime minister, contrasts his government’s response with the one during the last financial crisis: “Everybody said we bailed out the banks and we didn’t look after the people who really suffered”. Larry Kudlow, the director of America’s National Economic Council, calls America’s fiscal stimulus “the single largest

THOUGHT LEADERSHIP Two lessons stand out. The first lesson is that governmental control over the economy takes a large step-up during periods of crisis. The second is that the forces encouraging governments to retain and expand economic control are stronger than the forces encouraging them to relinquish it, meaning that a “temporary” expansion of state power tends to become permanent.5

Road to Recovery The extent of the economic damage and the time it will take for the economy to recover is subject to a high degree of speculation, and new models have been created to project a recovery trajectory. For example, the recovery can be V-shaped (after the downward fall the recovery will follow a straight line back to the original growth trajectory); U-shaped recovery (like V-shaped but with a longer turnaround period); VU shaped recovery (an initial pop, or sugar hit (the V), which is then superseded by a second, much slower growth phase (the U) due to a huge increase in debt repayment burdens and big creative destruction-induced output gaps (or excess productive capacity) as the virus forces the global economy to effectively rewire itself ); Z-shaped (recovery follows the V-shaped trajectory but overshoots the original trajectory due to pent-up demand before falling back to the original trajectory); W-shaped (recovery begins buts fall back before climbing back up again); and L-shaped (growth recovers but ends up lower than that of the pre-C-19 economic growth). In a survey of 106 economists and real estate experts conducted by Pulsenomics and Zillow, 41% of panellists expect the US recovery to follow a “U” shape, with the recession lasting several quarters before returning to growth.6 This prediction is in line with how the experts expect the US economy to recover overall. Forty-one percent said they think economic recovery will follow a “U” shape, and 33% say it will be a bumpy, multi-year return to trend growth. Both patterns are characterised first by a sharp decline and then match how experts see transaction volume recovering, with the consensus generally being a more gradual journey back to normal.

Whatever the final shape may turn out to be, Eswar Prasad and Ethan Wu, writing for the Brookings Institution, warns, “The world economy is on the precipice of its worst crisis since World War II. As the newly updated Brookings-FT TIGER (Tracking Indexes for the Global Economic Recovery) makes clear, economic activity, financial markets, and private-sector confidence are all cratering. And if international cooperation remains at its current level, a far more severe collapse is yet to come.” 7

A wide variety of economic and survey data suggest that the economy will recover slowly even after the government begins to ease limits on public gatherings and allow certain shuttered restaurants and shops to reopen. Many economists and business owners say there will be no rapid economic rebound until people feel confident that their risks of contracting the coronavirus have fallen, either through widespread testing or a vaccine.8 Prasad and Wu argue that while the current extraordinarily sharp downturn could prove to be relatively brief, with economic activity snapping back to previous levels once the Covid-19 contagion curve is flattened, there is good reason to worry that the world economy is heading into a deep, protracted recession. In their view much will depend on the pandemic’s trajectory and whether policymakers’ responses are sufficient to contain the damage while rebuilding consumer and business confidence. They do not believe that a rapid recovery is likely due to ravaged demand, extensive disruptions to manufacturing supply chains, and a financial crisis already underway.

They, like many other commentators, draw a distinction between the 2008-09 crash, and Covid-19. Unlike the 2008-09 crash, which was triggered by liquidity shortages in financial markets, they point out that the Covid-19 crisis involves fundamental solvency issues for firms and industries well beyond the financial sector. In addition, they note, the current shock is simultaneous and universal. During and immediately following the 2008 crisis, some emerging markets, not least China, and India, continued to register strong growth, pulling the rest of the world economy along. But this time, no economy is immune, and no country will be able to lead an export-driven recovery. Today’s collapse has increased deflationary and financial risks in the advanced economies and struck a significant blow to commodity exporters. On top of it all, oil prices are plunging even more than they otherwise would, due in large part to Saudi Arabia and Russia flooding the market. In their view all told, the economic and financial carnage wrought by the coronavirus could leave deep, lasting scars on the global economy. While they recognise that central banks are stepping up to the challenge, they point out that central banks cannot offset the fall in consumer demand or stimulate investment by themselves. With both conventional and unconventional monetary-policy tools already stretched to the limit, fiscal policymakers will have to do more. They suggest that well-targeted fiscal measures can soften the blow to consumers and businesses-especially small and medium-size enterprises, which typically have minimal financial buffers-thereby helping to sustain

THOUGHT LEADERSHIP employment and demand. In these desperate times, such measures should be fully embraced by all governments that currently benefit from low borrowing costs, even if they already have high levels of public debt. They also emphasise that low- and middle-income countries who have inadequate health systems will need substantial support from the international community, potentially including concessionary debt relief. But there is an elephant in the room: unfortunately, the world’s inability so far to forge a common front attest to the erosion of international cooperation, which is further damaging business and consumer confidence. They too, like many other commentators, call for this to change. The world urgently needs honest and transparent informationsharing by national leaders, coupled with aggressive steps to contain the pandemic, extensive stimulus to mitigate the economic fallout, and a carefully calibrated strategy to restart economic activity as soon as it is safe to do so.

The embedding of Zoom, or cheap video conference technology, may dissipate the value of face-to-face meetings and result in a permanent decrease in the demand for expensive business-related travel and accommodation.

Christopher Joye agrees with the sentiments expressed by Prasad and Wu. Joye sees the global economy being burdened by a great deal more public and private debt because of the enormous fiscal policy responses, which will need to be serviced through tax revenue and corporate/ household earnings. This he argues will drag on future global growth after the initial pop in activity as businesses restart and the working-age population gets back into their day-jobs. On the matter of whether this precipitates a sovereign debt crisis he believes that ultimately the central banks can cauterise this problem by continuing to do what they are currently doing: i.e., funding their domestic treasuries by buying government bonds via quantitative easing (QE). After all, he notes, central banks were originally created to fund governments

during times of war (that term again), and that is arguably where the world finds itself now in terms of response. On the question of inflationary shock, he expects the deflationary impulse of the GVC via the huge sudden increase in labour supply to overwhelm the inflationary impulse of the crisis over the short-to-medium term (i.e., in the next year or two) noting that the near-term inflation pressures obviously come through supply-chain rigidities as labour is taken temporarily offline. He does foresee a key consequence of the GVC as compelling much greater internalisation of supply-chains, especially those that service critical infrastructure and security-sensitive goods and services. In terms of changes, it is suggested that the GVC will result in a permanent economic damage akin to a form of creative destruction where the virus kills off weak companies as well as unproductive employees. This he suggests is because many businesses will come back looking different, shedding low quality workers, and closing unprofitable activities/subsidiaries. Some industries will be permanently changed in both positive and negative ways, for example, entire communities are being forced to get much more comfortable with online shopping and the associated delivery process, reducing at the margin the demand for traditional retailing. The cinema industry will be irreversibly damaged as consumption shifts away from theatres to on-demand digital platforms like Apple and Netflix, which will turn allow these distributors to capture more of the value-chain in the same way Amazon did with bricks and mortar retailing. The commercial property sector is also likely to feel this change as there is a possibility of a permanent decrease in the demand for both office and retail space. Many companies may conclude they can save overhead by remaining disaggregated (i.e., not renting office space). This will result in a decline in the value of commercial properties, and the risk associated with commercial property debt could increase sharply. Commercial property lenders’ LVRs might suddenly jump because of this. Indeed, he argues that a lot of distress in commercial property debt portfolios can be expected over the next 12 months. The embedding of Zoom, or cheap video conference technology, may dissipate the value of face-to-face meetings and result in a permanent decrease in the demand for expensive business-related travel and accommodation, adversely impacting airlines and hotels, as companies seek to enhance their operating efficiencies. All this creative destruction could result in unemployment rates not returning any time soon to their pre-GVC levels which will, in turn, place downward pressure on wages. Ultimately, he concludes that this will result in a battle between the shock of the new – a virus that derails life as we knew it – and the opportunities presented by the gigantic stimulus afforded by fiscal and monetary policy.9

As the world tries to deal with the ongoing challenges of Covid-19, it is worth reminding ourselves that infrastructure investment and climate action are both urgently need, and that with the right approach, both goals can be achieved simultaneously. This article provides some indications of what the right approach may be. CLICK HERE TO CONTINUE READING ARTICLE

REFERENCES 1 Opie, J. and Opie, P., ed. (1997) [1951]. The Oxford Dictionary of Nursery Rhymes (2nd ed.). Oxford: Oxford University Press. p. 254. ISBN 978-0-19-860088-6. . 2 Joye, C. 2020. “Calling a ‘VU’ shaped recovery: and creative destruction induced by GVC.” Coolabah Capital Investments, 7 April 2020. . 3 Briefing, 2020. “Rich countries try radical economic policies to counter covid-19.” The Economist, Mar 26, 2020. . 4 Briefing, 2020. “Rich countries try radical economic policies to counter covid-19.” The Economist, May 26, 2020. . 5 Briefing, 2020. “Rich countries try radical economic policies to counter COVID-19.” The Economist, March 26, 2020. . 6 Olsen, S. 2020. “Experts: Spring’s missing home sales will be added in coming years. Zillow, June 3, 2020. . 7 Prasad, E. and Wu, E., 2020. “Anatomy of the coronavirus collapse.” The Brookings Institution, Monday, April 13, 2020. . 8 Tankersley, J. 2020. “Economic pain will persist long after lockdowns end.” The New York Times, 13 April 2020. . 9 Joye, C. 2020. “Calling a ‘VU’ shaped recovery and creative destruction induced by GVC.” Coolabah Capital Investments, 7 April 2020.

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Financing a SUSTAINABLE ECONOMY Sustainable finance plays a pivotal role in enabling environmentally appropriate social development and creating new economic opportunities in the green economy.

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he South African national greenhouse gas inventory highlights that electricity generation from fossil fuels contributes some 45% of South African emissions. It follows, therefore, that to address climate-related risks in the country it is essential to reduce electricityrelated emissions. The scale and reach of this problem is multifaceted and requires financial resources, structural and socio-economic reforms. Sustainable finance is essential for balanced and inclusive growth, based on the identification and mitigation of risks as well as the search for economic opportunities that are socially, environmentally and economically beneficial. It encompasses both the concepts of green- and socially-focused finance. The Intergovernmental Panel on Climate Change, the OECD and others have estimated that trillions of new dollars will be needed each year, up to 2030, for investments in energy, transport, water and telecommunications infrastructure to sustain growth and mitigate climate effects. An additional USD600bn a year would likely be needed to make these investments compatible with holding the average global warming to 2°C. The Climate Policy Initiative1 has estimated the South African economic transition risks at an aggregated R2tn (of which 60% has already been incurred)2. A further R362bn may result from infrastructure investments currently being contemplated that may not be economically viable in a low-carbon transition. Many of the transition risks identified result from transitions in the global economy and cannot be prevented by any national government but require rapid adaptation by all players public and private. In 2017, the Task Force on Climate-related Financial Disclosures3 published recommendations to increase understanding of the financial risks related to climate change. It recommended to the G20 that for financial disclosure,

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global warming scenarios should be used to model the potential risks to economic systems. Systematic and credible disclosure is needed to enable improved pricing and risk distribution and the identification of economic opportunities associated with climate risk mitigation and adaptation.

TREASURY APPROACH Addressing both climate change and South Africa’s development agenda will require the reallocation of capital, the mobilisation of new financial resources and the strategic realignment of existing resources (public and private) over the short, medium and long term. Government has recognised the need for a just transition4 and various government agencies and departments, including Treasury and the National Planning Commission, are working to understand what is needed and stimulate the creation of new jobs. By mobilising private sector funding of new and more sustainable projects, such as through the Renewable Energy Independent Power Producer Programme (REIPPP), Treasury facilitates the shifting of green infrastructure investment off the national balance sheet into the private sector.5

The Climate Policy Initiative has estimated the South African economic transition risks at an aggregated R2tn.

DEVELOPMENT DIALOGUE | A Trade & Industrial Policy Strategies seminaar on the key priorities and challenges for a just transition in Emalaheni and Steve Tshwete – What does mining closure mean for workers, their jobs and livelihoods? [August 2021]

REFERENCES 1 Climate Policy Initiative: https://climatepolicyinitiative.org 2 USD125bn at January 2019 exchange rates 3 Established by the Financial Stability Board at the request of the G20 finance ministers and central banks 4 Just transition accommodates the needs of communities, which may be negatively affected through the loss of jobs or activities because of a move to a lower carbon economy 5 Eskom power purchase agreements are an exception

RESPONSIBLE INVESTING Treasury seeks to protect the economy and unlock opportunities that will enhance the country’s adaptability to the rapidly changing climate and realise socio-economic benefits from the transition to a lower carbon, greener economy and build resilience to create a safer financial sector that better serves South Africa. It is pursuing policies to ensure all financial institutions embed and improve their capability for identifying, managing and disclosing the environmental and social risks in their portfolios through strengthening the regulatory framework and encouraging the uptake of leading practice. Treasury capital appraisal guidelines, which are under review, will incorporate climate resilience. Fiscal allocations to support ecologically sustainable development through the Department of Environmental Affairs, Forestry and Fisheries are complemented with funding for public transport, clean energy and energy efficiency, water conservation and demand management.

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Environmental and social risks and opportunities

At an intergovernmental level, the Treasury approach is to integrate climate responsiveness into provincial and municipal planning. This includes ensuring climate change responsive budgeting through guidelines for provincial medium-term expenditure frameworks and built environment performance plans for metropolitan municipalities. Through a progressive integration and system reform, provinces and municipalities can create an intergovernmental project pipeline. Accelerating the implementation of the 2015 Paris Climate Agreement requires clear financing strategies that work to mobilise resources from both public and private sectors. Treasury is working with local and international partners to leverage climate change funding. The Department of Agriculture and Treasury is working closely with the local insurance industry on an agricultural insurance product. *Excerpt from Financing a Sustainable Economy report

FINANCING A SUSTAINABLE ECONOMY | National Treasury Technical Report [2020] This paper sets out the research and resultant recommendations of a process to establish minimum practice and standards about climate change as well as emerging environmental and social risks. The study focuses on the need for South Africa to mobilise the financial resources now to address this challenge, both for the benefit of its citizens and to meet its global obligations. REPORT RECOMMENDATIONS To adopt the following definition of sustainable finance in South Africa: Sustainable finance encompasses financial models, products, markets and ethical practices to deliver resilience and long-term value in each of the economic, environmental and social aspects and thereby contribute to the delivery of the sustainable development goals and climate resilience. This can be achieved by: • Evaluating portfolio as well as transaction-level environmental and social risk exposure and opportunities, using science-based methodologies and best-practice norms • Linking these to products, activities and capital allocations • Maximising opportunities to mitigate risk and achieve benefits in each of the social and environmental and economic aspects • Contributing to the delivery of the sustainable development goals. SA’s climate change response

Barriers to sustainable finance

Defining sustainable finance

Conclusion of report

SOUTH AFRICA’S GREENEST BONDS The earliest green bonds issued in South Africa were for clean energy infrastructure and local government initiatives: 2012 The Industrial Development Corporation issued a R5bn bond for investment in clean energy infrastructure. 2014 The City of Johannesburg was the first local municipality to list a green bond on the JSE – a R1.46bn issuance to finance initiatives, such as biogas-to-energy and the Solar Geyser Initiative. The City of Cape Town’s R1bn Green Bond will fund projects aligned with the City’s Climate Change Strategy, including measures to secure long-term water availability. 2017 The Johannesburg Stock Exchange opened a Green Bond segment on the exchange. The first bond issuance, by Growthpoint, was a R1.1bn bond for five, seven or 10 years. 2019 Nedbank became the first bank to list a green bond on the JSE, with proceeds ring-fenced for renewable energy. It attracted R5.5bn in bids and increased the size of the issue from R1bn to R1.7bn. 2020 Standard Bank sold a 10-year USD200m green bond to the International Finance Corporation via the London Stock Exchange.

RESPONSIBLE INVESTING

Making sense of

SUSTAINABILITY

The “sustainability” term remains amorphous, so even after agreeing to address it, innovative leaders still need to decide what it means and then set strategy for it. BY LUX RESEARCH

ustainable development is growth that meets the needs of the present without compromising the ability of future generations to meet their own needs. To help make sense of what sustainability should mean in practice, we address three of the most common questions on the topic. Asking and answering these questions lays the groundwork for developing a sustainability strategy.

1. SHOULD YOU BOTHER WITH SUSTAINABILITY AT ALL?

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Some company leaders do still wonder if the term is more a marketing buzzword than a real strategic priority. The answer here is clear: Over the past few years, numerous stakeholders have begun to demand sustainability, showing that this trend will last and is not a passing fad. Investors have shown increased interest in environmental and social impact. In a presentation on quantifying megatrends, Director Cosmin Laslau notes that “climate and sustainability” has become arguably the most important trend for shareholders. Companies with the highest environmental, social, and governance (ESG) scores have seen aboveaverage growth over the previous five years. Even more telling was State Street Global Advisors calling out three companies for poor ESG performance. With shareholders making these moves, business leaders need to respond. Consumer preferences have shifted from wanting sustainability to demanding it, and these preferences have had major impacts on established businesses. Fast fashion brand Forever 21 filed for bankruptcy, in part due to its poor response to customers’ concerns about the waste produced from “fast fashion.” Entire products can be upended – plastic straws have been removed from many establishments after a video of a plastic straw stuck in a turtle’s nose went viral in 2018. These issues matter to consumers and are driving product choices, so many consumer-facing brands are committing to sustainability goals – and pushing their suppliers to do the same. Employees now strive to work for more environmentally friendly companies and are increasingly taking action to improve their workplaces – amicably or not. Failure to hold to important values can lead to significant backlash from employees – more than 300 Amazon employees protested

Amazon’s climate and social practices, even with a warning that they could be fired for doing so. Attracting and retaining top talent requires taking values like impact and inclusion seriously.

2. HOW DO YOU SET THE RIGHT GOALS? Here, the answer is different for each organisation – ranging from the Ellen MacArthur Foundation’s New Plastic Economy to utilities striving to reduce methane emissions, to governments aiming to become leaders in Li-ion battery and EV manufacturing. To determine your targets, consider these key approaches: • Use fewer resources. Cutting down on resource inputs, from water to energy to raw materials, is a clear way to reduce impact. For instance, while companies are taking a myriad of approaches to achieve sustainable packaging goals, a simple strategy is to merely reduce packaging used. Unilever, for example, aims to reduce its virgin plastic packaging used by 50% by 2025, targeting multiuse packs and “no plastic” products. • Reduce emissions. Cutting back on releases of harmful by-products, most notably CO2 and other greenhouse gases, is another objective. Emission reduction can manifest in numerous ways: Light-weighting results in fewer emissions from transportation; switching to renewable sources makes energy use greener, and reusing materials or products curtails the impact of manufacturing. However, sometimes changing the process entirely moves the needle the most. Current ammonia production is as energy-efficient as possible, but there is significant interest in altering the traditional Haber-Bosch process, including adding carbon capture, using green hydrogen, or switching entirely to electrochemical synthesis, with big impacts on emissions. • Reduce waste. Even with a reduction in resources used, there will always be waste, which can have its own negative effects. Companies can focus on reducing waste and developing a “circular economy” – from increasing recycling rates for plastic packaging to using food waste as a feedstock for feed and fertilising. However, the efforts to develop a circular economy extend beyond consumer-produced waste like food and packaging to addressing end-of-life issues with energy technologies, such as lithium-ion batteries and wind turbine blades.

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RESPONSIBLE INVESTING 3. HOW DO YOU INCORPORATE SUSTAINABILITY INTO YOUR STRATEGY?

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This article is an excerpt from

Which sustainability strategies?

Appeasing investors

Using fewer resources

Improving operations

Serving consumers

Reducing emissions

Helping customers

Attracting and retaining employees

Minimising waste

Finding new business targets

S&P 500’s growth from 2014 to 2019.

MAKING SENSE OF “SUSTAINABILITY” Report by Lux Research

Lux Research uniquely combines technical expertise and business insights with a proprietary platform, using advanced analytics and data science to surface true leading indicators.

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What sustainability goals?

For this strategy, the value proposition is in the new top-line growth opportunities it can generate. All told, this three-step process of assessing the drivers of sustainability, selecting the relevant goals, and aligning to business strategy provides a roadmap for companies looking to get their heads around what sustainability means for their business – and focusing on the substance of what it means for strategy. The exact answers will be different for each organisation but asking the right questions and taking a structured approach can place your team on a solid path.

Source: Lux Executive Summit Global 2019

Taking action is important, but there still needs to be a business case for the specific moves you make toward your goals. To develop a strategy that aligns with overall business goals, consider the following options to identify a value proposition. • Make your operations more sustainable. All companies can work to manage the impact of their factories, offices, and logistics, often finding financial benefits in doing so. Much of the focus here is on reduced emissions – can you use a low-carbon fuel, can you electrify, can you use less material to reduce energy needs? Global delivery service company, UPS recently announced plans to invest $450-million in deploying 6 000 natural gas vehicles (NGVs), reducing its carbon footprint through an economically viable approach. The business value proposition here is in cutting the operational cost associated with energy usage (and potentially saving on a carbon tax bill). • Help your customers become more sustainable. Another strategy is less in operations and more in product development – more sustainable solutions for customers that allow them to improve their operations and products (for businesses) or reduce their own personal impact (for consumers). Examples include offering bio-based and recycled materials or selling consumer products in reusable packaging. The value proposition here is to protect or grow market share – or even gain first-mover advantage – as downstream demand shifts to prioritise sustainability. • Tap into new business opportunities created by the sustainability trend. Apart from improving existing products for existing customers, there are opportunities to develop products for new markets that are emerging due to the sustainability trend. These targets can range from new battery materials for energy storage to alternative proteins that offer a lower environmental footprint than meat.

Why address sustainability?

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CORPORATE GOVERNANCE, INTEGRATED REPORTING AND ENVIRONMENTAL DISCLOSURE: Evidence from the South African Context | a Sustainability article by MDPI [June 2020] This research aims to investigate the influence of sustainability-related issues of a sample of South African listed companies on the JSE regarding environmental disclosure, after the mandatory preparation of integrated reporting. Integrated reporting (IR) can be identified as an innovative form of corporate reporting that seeks to combine financial, social, and environmental information. The movement of IR is strongly linked to sustainability issues, as it can represent how an organisation creates and sustains value and to bring together economic, social, and environmental factors in response to the recent needs related to the global financial downturn, environmental goals, and the call for greater transparency of corporate reporting. In addition to sustainability reporting, IR promises to radically change the management approach to business strategy and value creation.

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SMART CITIES

LANSERIA INTERNATIONAL AIRPORT: set for new heights Lanseria is set to be converted into one of Gauteng’s first smart cities. The project will include a business gateway, a three-tower precinct and a corporate estate. In addition to new Gautrain routes connecting to Joburg CBD and OR Tambo International, state-of-theart, multi-use smart facilities will stretch from Lanseria in Gauteng to Hartbeespoort Dam in the North West. (meetings, incentives, conventions and exhibitions or events) with smallscale conferencing and wedding venues being common; and mining/ quarrying operations. Lanseria Airport has embarked on a strategy of positioning itself as the future green international airport fit for a smart city.

GREEN INITIATIVES

ith additional investment in road and freight infrastructure development, the Lanseria International Airport Mega City is set to become a manufacturing, logistics, and business hub. Significant development over the past decade at Lanseria airport – initially an executive airstrip for corporate travellers and now hosts flights to Cape Town and Durban on a daily basis – has seen a marked increase in industrial activity in the area in recent years. Its near proximity to the country’s economic epicentre and the planned mega smart city development, sets Lanseria on the path to being a noteworthy and desired industrial and entrepreneurial node, with the planned multipurpose residential development affording residents true work-life balance with less time spent commuting. A Regional Node ‘Provincial Area of Focus’ is identified for the Lanseria Airport. This demonstrates the will for integrated economic development and spatial restructuring at Lanseria, which includes the addition of a future Gautrain station, BRT lines and the PWV5 as a road, freight and public transport route. The West Rand District Municipality will create new industries, new economic nodes and a new city will be anchored around the Lanseria Airport and the Maropeng World Heritage Site. It was precisely for this reason that the wider Lanseria Airport area was ear-marked as a potential nodal project that should be prioritised as a basis for creating more urban prospect for these marginalised communities. At present, the main economic drivers within the Greater Lanseria area are Lanseria Airport; a widespread but uncoordinated agricultural sector; a tourism and leisure industry based on the Cradle of Humankind, MICE

We have a strong sense of community responsibility and believe we are who we are because of the community that surrounds us. We have developed a strong programme of community investment and play an active role in developing the communities that surround us. Our focus is primarily on health care and education with infrastructure development as the main driver. Our aim is to invest in young people, and we believe that a firm foundation is needed for the future leaders and workforce that will take the country forward. We have invested a sizeable amount of funds in early childhood development programs (ECD) and primary schools.

Water Lanseria Airport appointed a service provider to abstract treated water from the Waste Water Treatment Works (WWTW) for irrigating its gardens. A tanker is used for abstracting water from the WWTW for irrigation of the garden at the fire department, security complex and parking areas. Lanseria has a car wash for car rentals that uses recycled water. The airport has installed a filtration system that recycles water for daily car washes.

Worm farming Lanseria Airport has embarked on a zero-waste to landfill policy. While striving to archive this goal, we have introduced worm farming and we also sort waste at source. Our food outlets are encouraged to separate food waste from the rest of the waste streams to avoid contamination of the worm feeds. The worm farm diet is raw vegetables, fruit peels, tea bags and eggshells. The feedstock should not contain any acidic foods. We have recently extended our worm farm from 4.5m to 6m long. The Lanseria Airport worm farm has the following properties: • Size: 6m long and 1.45m wide • Fed on average 21.07 kg of food every week • Feeding process takes an average of two hours every week • The worm farm produces 5.55 litres of worm tea on a weekly basis • The tea is used as a fertilizer

SMART CITIES

promote best practice in

URBAN SUSTAINABILITY

A smart city is much more than a city that is digitally enabled and brimming with technology. It is a city that leverages innovation to achieve its desired outcomes – and here innovation does not necessarily mean only technology.

his is the view of Carshif Talip, expertise leader, urban planning and land infrastructure at Zutari. “A smart city is a city where opportunity, amenity, safety, resilience, inclusivity and prosperity are imperatives, and innovation across financing, design, construction, operations and governance is embraced by all stakeholders to achieve these imperatives.” President Ramaphosa announced in his 2021 State of the Nation Address that the masterplan for the proposed Lanseria Smart City had been completed in November last year. The project is a joint initiative of the Presidency, the Office of the Gauteng Premier, Tshwane, Johannesburg and Mogale. It is based on best practice in urban sustainability and the principles underpinning the smart city concept. The fact that innovation is such an integral part of smart cities makes for a natural fit between smart cities and sustainability. The emphasis on digital platforms also enables data collection, and the availability of large data sets is one of the first steps towards optimisation. Proper planning is the answer to rapid urbanisation, inadequate infrastructure and polarised development. Equally important is an

integrated approach, as with the Lanseria Smart City. “A siloed approach, whether that be across the various spheres of government, the private and public sectors or even within a municipal entity itself, needs to be eliminated if we are to be successful,” urges Talip. Each stakeholder needs to have their role and contribution clearly defined and have the necessary resources to deliver. Finally, a measure of agility and fluidity needs to be built in. “Planning, in essence, is designing a path based on a predicted future. If that future changes, and one just has to look at how unpredictable 2020 was due to the Covid19 pandemic, the plan needs to be sufficiently adaptable to respond to change,” stresses Talip. In terms of the impact of Covid-19 on future urban planning requirements, one positive outcome has been that flexible working arrangements are now possible. “The need for large swathes of office space will certainly be challenged, and tenants will demand more flexible arrangements from their landlords,” notes Talip. While there will always be a brick-and-mortar component to retail, there is certainly a move towards online retail. These two phenomena could challenge planning concepts

SMART CITIES like centralising commercial areas, and even the concept of what a CBD looks like. This might have a profound impact on what cities look like in the future. Another impact of Covid-19 has been the disruption of global supply chains. What will be interesting to see in the long term is if governments around the world – who anticipate more severe pandemics in future – shift towards self-reliance rather than global imports. Therefore, governments might consider reigniting primary and secondary economic sectors such as mining, agriculture and manufacturing. “Should this happen, we could expect shifts in urban migration that could impact planning requirements,” predicts Talip.

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THE GREATER LANSERIA MASTERPLAN | Tomorrow’s sustainable city today The brief for the Greater Lanseria Masterplan is to be a truly post-apartheid city based on best practice in terms of urban sustainability and the principles underpinning the smart city. It is to be inclusive of the broadly defined South African socio-economic spectrum and must stimulate a vibrant, mixed-urban economy. Activity zones should be compact in their spatial extent; they must also be complex in their mix of urban uses. Living at higher residential densities within patterns of more intense urbanity make it possible to achieve far higher levels of efficiency in terms of infrastructural services and public transport systems. It increases the evenness and efficacy with which social services and amenities are provided. The design of the inclusionary city starts with the importance of the public environment and the way a “responsive architecture” defines the natural surveillance of that environment: the tenets of safe city design apply and a people-first, rather than a car-first mentality leads the design process. Highly permeable, safe pedestrian and cycle systems need to be augmented with a comprehensive, street system defined less by class of traffic function and more by networked connectivity that is future-proofed as urban mobility rapidly reinvents itself. An important aspect of the city economy is its infrastructural investment, not simply in how it is funded but also the inclusion of myriad upstream and downstream aspects of its economic chain. Much of the contemporary thinking regarding urban sustainability recognises this as well as the more obvious aspects of energy-efficiency and the striving for carbon-neutral systems. The inclusionary economy It is necessary to see the design of the public environment as one of the most important generators for spawning economic cross-over. This means embracing inclusion rather than simplistic models of separation and specialisation as has been the case. How the energies of one investment into the urban system are harnessed through careful urban design to spawn other opportunities is a vital aspect of the layout and enablement of activity zones, be this at the city-scale of, for example, an airport or a logistics hub, or the more localised scale of an open-air market. While incremental delivery of service delivery must be paced according to residential demand, early-warning systems must be put in place to ensure “just-in-time” delivery of comprehensively managed facilities. An open-ended approach An interdisciplinary planning approach proposes a group of new utilities to undertake: • Waste-to-energy using pyrolysis • Regional waste-sorting and recycling • Biogas production • Smart-grid power • Instituting district cooling as a utility • Harvesting fertiliser value from waste treatment • Water treatment and polishing • Waterless/less-water-based sewer systems • Harvesting water at scale • Replenishment of the ground-water system • Augmenting energy production with water-pumping systems • Instituting a variety of green industries • Green building • Renewable energy

SMART CITIES: WHEN DIGITAL TECHNOLOGY MAKES URBAN AREAS MORE ATTRACTIVE AND COMPETITIVE.

Relying on its worldwide expertise in water, waste and energy management, Veolia utilizes cutting-edge technologies to bring utilities to the next level. www.veolia.co.za info.southafrica@veolia.com 011 663 3600

SMART CITIES

SMARTER SOLUTIONS for people and planet

The pressure of ensuring that cities remain attractive and liveable for citizens, while adhering to sustainability principles, is creating considerable stumbling blocks for those in charge. BY VEOLIA SERVICES SOUTHERN AFRICA

he challenge of delivering acceptable levels of public services is becoming increasingly difficult in Southern Africa with increased urbanisation, a lack of clean water and decent sanitation, aging infrastructure, and the spiralling costs of energy production (not to mention its harmful effects on the environment). The current way of existing in businesses, homes and cities is largely unsustainable and indicates a recipe for disaster if it continues in this way. The move toward a smart city aims to find solutions to increasingly scarce resources while at the same time, addressing sustainability. At the heart of the smart city is its users; citizens, businesses, local governments and decisionmakers, who must be armed with the necessary digital tools and innovation to create more sustainable cities. As a partner to cities, governments and other civil organisations, Veolia aims to assist with addressing these challenges through the provision of innovative solutions. It is our belief that the use of technology and data is an opportunity to make informed decisions about city resources and ultimately, deliver a better quality of life for its citizens. A smart city means smarter networks. Veolia’s solutions aim to address the above challenges and simultaneously support the transformation toward smart cities through infrastructure upgrades, technological advancement and digital systems. Veolia can help on three levels of integration in the move toward smart cities: • Smart operations • Smart services • Smart ecosystem With the African continent facing major water shortages, the re-use of wastewater seems to be the most sensible and under-utilised solution that will aid cities in becoming smarter. This means improving water efficiency for the benefit of the city and its residents, using data and technologies as enablers, increasing efficiency of potable water networks and irrigation networks, to enhance the reuse of water, allow deferred investments in water production plants and optimisation in pipe renewal, as well as

preserve resources (energy and water) by improving leakage management and enabling demand response programmes. With more than 350 proprietary technologies covering every key stage in the water treatment process, Veolia is a globally recognised player in the field. Furthermore, we’ve adopted a digital approach to improving operational performance and customer satisfaction. We have the capacity to measure, simulate and communicate in real-time to ensure continued efficiencies, helping to contribute toward quality of life and further development of the smart city through the delivery of smart services. Another smart solution that requires no introduction but is vital for sustainability is energy optimisation. As with our water audits, we have developed tools to conduct energy assessments as well. First, a comprehensive energy audit will be conducted to determine any potential savings in, for example, a large corporate building. A baseline will also be determined and through these, the implementation of the actions will occur. Veolia can assist with onsite operations and maintenance as well as monitoring to ensure that set targets are achieved. A clean city is a smart city, and Veolia’s waste expertise can assist with sustainable changes in waste management. Responsible waste management not only means adhering to the principles of the circular economy – reducing, reusing and recycling, but providing services that turn waste into value. Our solutions range from recycling services, through to the safe treatment and disposal of hazardous waste. In recent years, waste disposal has become a contentious issue for many large corporations and Veolia has made it our business to assist with beneficial reuse solutions and to maximise valuable by-product recovery from waste. The implementation of smart solutions in the drive toward a smart city may seem daunting, not to mention a seemingly expensive exercise. It also requires the buy-in of all stakeholders to ensure its success. Veolia’s unmatched knowledge, expertise and digital capabilities offers value-added solutions that can protect both people and the planet.

WATER

DAMS OR HALF EMPTY HALF FULL

Unlocking water security in South Africa Whether it was Sydney and Melbourne in Australia, Chennai in India, Barcelona in Spain or São Paulo in Brazil, we have seen that, too often, water crises occur because societies don’t take action until it is already too late. BY MIKE MULLER, WISA*

outh Africa had that experience with its Day Zero crisis in Cape Town. In the Eastern Cape, Nelson Mandela Bay provides more evidence. Despite being advised for more than a decade that its supply infrastructure was inadequate, the municipality did not act. Now the dams are almost empty. The immediate question is whether the Gauteng province and surrounds

can avoid the same experience. The region gets its water from the Integrated Vaal River System, of which the Lesotho Highlands Water Project is an important part. Completion of Phase 2 of this project, which will increase available supplies, is already nearly a decade late and water use is growing steadily. Tenders to build the dam and tunnel for the second phase have not yet been awarded. The earliest that they will provide additional water is 2027.

WATER SAVING FOR A RAINY DAY The system’s capacity is already used to its limit but that is not generally understood. When asked whether water supply is sufficient, most people’s attention focuses on dam levels. But dam levels simply tell you how much water is stored, not how long it will last. In this sense, dams are like a household’s bank account. If wages are paid into the account once a month, when the flow of money reduces, so too must the expenditures. The water deposited in the reservoir is like the wages paid into the bank – users must make sure that it doesn’t flow out so fast that there’s none left before the next rains arrive. Enough must be kept in reserve in case there is a dry year. Two factors must be considered together to avoid water crises: technical matters like rainfall, river flow and infrastructure; and human factors such as the behaviour of water managers and users. South Africa’s climate is relatively well-documented. The priority for water planners is to manage the fact that rainfall is highly variable. Planners work with hydrologists and climate scientists to estimate the risk that there will be a succession of dry years. They calculate how low river flows will go and how much storage is needed to keep supplies running. That kind of information, used to plan the infrastructure of the Integrated Vaal River System, has kept the region water secure for almost 40 years. It also flagged the need to build the next phase of the Lesotho project. That’s where the human factors intervene. To meet the water needs of populations and economies, planned investments must be made on time. And until additional supply is available, water use must be kept within safe limits. This requires water users to change their behaviour.

HUMAN BEHAVIOUR

Department of Water and Sanitation

Since the Gauteng population is growing at about 3% per year and supply is fixed, consumption will have to decrease by 3% a year if the region is to stay water secure.

The priority for water planners is to manage the fact that rainfall is highly variable.

But if people see full dams, can they be persuaded to reduce their water use? Some efforts are already being made. Rand Water, the bulk water provider, has a critical role to play. It takes water from the Vaal River system, purifies it and supplies across the region. Rand Water has reached the limit of what it is allowed to take from the system and is now rationing available water between its different users. Consumption targets have been set for individual municipalities and Rand Water is restricting supplies to those that don’t use their water efficiently. Consumption per person in the region is around 300 litres per day – well above global averages – so there is room for improvement. And almost 40% of the water supplied to municipalities is “non-revenue water” – either lost through leaks or not billed and paid for and thus often wasted. At the root of these problems is poor management and maintenance. To cope with supply restrictions, municipalities face difficult choices. Most are trying to reduce their “non-revenue water”. Some are delaying new housing and industrial developments. Others are cutting supply to selected suburbs for days at a time when they reach their allocated limit. The region’s citizens have not yet been told the hard truth that for the next six years, this supply squeeze will get tighter. Yet this information is essential if communities and households are to play their part. People will not change their behaviour unless they’re told what’s happening and how to avoid a crisis.

The study area for the reconciliation strategy for the Integrated Vaal River System – Phase 2.

WATER

Watershed boundaries of the GCR

Schematic cross section of the Witwatersrand Watershed in Johannesburg

Click here for schematic cross section Watershed between Vaal River and Limpopo tributaries Watershed between Crocodile West Marico and Olifants Rivers

Gauteng City-Region Observatory

Provinces Rivers Wetlands and dams Urban areas The Witwatersrand watershed

The map depicts the different ways in which water systems serve as barriers within an urban system. Rivers are visible barriers in the landscape and are often shown on a map as a boundary between two properties. Watersheds are a less visible kind of boundary but are important in dividing one drainage system from another.

A lesson from Cape Town’s Day Zero experience was that when people were told about the problems, and about how the city and their neighbourhood were performing, they reduced their water use. Cape Town showed that people will take difficult actions when there’s a problem they can see and understand. It has been suggested that Rand Water should publish monthly reports on the progress made to achieve municipal savings targets. That is politically delicate since national ministers are reluctant to expose their local counterparts to criticism. So, the technical dimension of ensuring reliable water supply –

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06 24

SA’s national water and sanitation plan

managing the dams, treatment works, pumps and pipes – is difficult. But even more challenging is the task of motivating human interventions, from ministers down to households. The measure of success or failure is whether the water comes out of the taps when needed. And too often, it’s human behaviour rather than infrastructure that fails us. *Mike Muller is an advisor to the Minister of Water and Sanitation, Lindiwe Sisulu. He is board member and technical director of Water Institute of Southern Africa (WISA) and an active member of other professional associations including the South African Institution of Civil Engineers and the South African Academy of Engineers.

Water Security Perspective for the Gauteng City Region. A report prepared for Gauteng Provincial Government by Gauteng City-Region Observatory. [August 2019] Gauteng will only be water secure once there is affordable access to safe and reliable water supplies as well as to safely managed and dignified sanitation services. This will not be achieved by action in the water sector alone. Informal settlements present a particularly difficult challenge. The report outlines the sources of the province’s water and the systems on which it depends (page 10). It considers how the province’s wastes are managed and the implications for the surrounding region. It then reviews the current performance of the key institutions in the sector (page 14) and identifies the emerging challenges that face Gauteng if it is to achieve and then sustain its water security (page 16).

Current performance and emerging challenges

Bulk supply: availability, restrictions, climate change and other risks

Strategic responses to emerging challenges

Action plan and way forward

The Conversation/ Under Creative License

GOING WITH THE FLOW

ENERGY

The role of Mercia Grimbeek, Chair of SAWEA

WOMEN in SA’s ENERGY space

Our national renewable energy sector recently called for the establishment of a Gender Diversity Charter. The response was sector-wide. BY SAWEA

“T

he charter is intended as a framework with which the industry measures itself and its commitments. But it is more personal than just a mechanism for impact, as this Charter is being pursued by many of our members as a legacy for our late CEO, Ntombifuthi Ntuli,” explained Mercia Grimbeek, Chair of SAWEA. Hosted by the sector’s Gender Diversity Working Group, this is a joint initiative between SAWEA and SAPVIA, the industry’s leading associations.

Mercia Grimbeek outlines the industry’s vision Why is there a need for a Gender Diversity Charter? Gender diversity has become very topical in recent times, and we have witnessed concerted efforts by many local companies in the sector to address the gender gap. While this is commendable and certainly encouraged, as an association we felt that assessing progress and impact was rather subjective and not easily measurable or such that it could be easily monitored. We have also witnessed the ravages of Covid-19 on our industry and our economy, and this has further negatively impacted on the work already done and future initiatives to progress gender diversity within the industry. As a Working Group we have heard so many examples in areas such as recruitment, executive management and equal pay, to name a few, where gender inequality is still rampant in our industry. We understand that this is a global challenge, but it is time to find our local voice and facilitate meaningful and impactful change.

The key objectives will look at issues of representation, inclusivity, flow of opportunity and support and accountability. We are looking forward to the DMRE’s work with the newly launched Energy Sector Gender Ministerial Advisory Council, which will inform the direction our charter takes. How does gender diversity fit into the energy transformation agenda? Gender diversity is a critical component of the agenda. The energy sector remains one of the least gender diverse sectors, especially at decisionmaking level. We are also mindful that the transition will require innovative solutions and business models. Closing the gender gap will bring with it the benefits of inclusive solutions as more women become decision-makers. How important is it that the board reflects gender equality? Robust discussions about industry challenges require deep insight, multiple angles to be considered and collective experiences. A SAWEA Board that is gender-balanced can harness these attributes to guide and advise the CEO. When governance is good, it benefits the CEO as well as the members of the association. Hence, it is very important to me that the SAWEA Board reflects gender equality. The Board represents the industry and is reflective of industry goals and aspirations. Good governance calls for diversity in the boardroom and in my opinion, this brings strength to the SAWEA Board. A gender-balanced board brings with it different perspectives and approaches to decision-making.

What are the key objectives for the implementation of the Charter? The aim is to launch the commitment statements on the anniversary of the Working Group, which coincides with International Women’s Day. This is after an extensive consultative process with leaders from our member organisations. Due to their involvement, there is a shared vision and ownership of the commitments to be made.

You were part of the Global Wind Energy Council women leadership programme two years ago. Did it make a difference to your career? The Women in Leadership programme was instrumental to my career development. I was exposed to a plethora of strong, confident women who shared knowledge and experiences. The programme allowed me to take my learnings and implement them in guiding an industry association and nurturing young talent emerging into the industry. Ultimately, it encouraged me to take up a place in industry and become an ambassador for the growth of the industry in our country.

It is time to find our local voice and facilitate meaningful and impactful change.

What advice do you have for other women in the industry? Be honest and vulnerable about where you are and acknowledge your part. Don’t see vulnerability as a weakness. Seek a mentor. There is always someone older and wiser that is willing to share their knowledge. Learn to step back and gain perspective when things get tough. Remember what your goal is and reframe how you want to achieve it. Believe in yourself.

PRODUCTION

Meet excellence in RESOURCE EFFICIENCY Excellent Meat is reaping significant financial and sustainability rewards from industrial energy and water efficiency interventions, implemented with assistance from the National Cleaner Production Centre of South Africa’s Resource Efficiency and Cleaner Production Programme.

he 51-year-old family-owned supplier of quality Halaal products to customers such as Woolworths, Pick n Pay, McDonalds, KFC, Spur, Burger King, and Ethiopian Airlines, among others, accrued monetary savings to the tune of R2 904 312 and energy savings of 1 653 835kWh between 2018 and 2020. It reduced greenhouse gas emissions by 1 654-ton CO2. Excellent Meat invested R75 000 in electricity management initiatives, which saved it more than R709 400 and 412 470kWh in electricity consumption at two of its four sites. An investment of R360 958 in water-saving initiatives effected total water cost savings between 2018 and 2020 of R1 500 312; water consumption savings of 29 931kL at a total value of R809 346 and wastewater savings of 28 435kL with a value of R690 967. “The National Cleaner Production Centre of South Africa (NCPC-SA), on behalf of the Department of Trade, Industry and Competition, has over the past three years supported Excellent Meat to explore infrastructure opportunities that will enable continuous improvement projects within its business. The company is committed to responsible production – especially in the light of the severe drought conditions that have plagued the Western Cape since 2015 – and has partnered with the City of Cape Town, the Provincial Government of the Western Cape, and GreenCape to address its resource and environmental challenges. In 2017, GreenCape suggested that the NCPC-SA, hosted by the CSIR, gets involved,” explains Andre Page of the NCPC-SA. A Waterwise Workshop with other stakeholders followed, during which a presentation was given on the Resource Efficiency and Cleaner Production (RECP) Programme of the NCPC-SA. Excellent Meat immediately expressed

interest and thus, in March 2018, a water assessment commenced and was followed by an energy assessment in parallel with a lifecycle management capability maturity model assessment by two independent service providers. Page says, “The company implemented more than 14 projects, which included identifying water leaks. Finding a leak under a 4 000sqm factory proved a challenge, but once located, consumption was reduced by almost 50%. Excellent Meat also invested in tracking tools such as watersmart meters and electricity-tracking tools, and learnt how to set realistic water consumption targets, considering the prevailing water situation as well as the reality of a food processing facility’s stringent water-reliant hygiene standards.” The energy assessment recommended a change of electricity tariff. It found that the operating hours of Excellent Meat aligned better with a time-of-use tariff that has a lower maximum demand charge. In six months during 2020, this effected a saving of R351 000. “Excellent Meat is an RECP champion and a responsible corporate citizen of which to be proud,” Page adds. “Besides what it has already achieved, it continues its work with GreenCape to assess green technology options targeting water conservation. It has also established a sustainability team to monitor, review and implement energy, water and waste policies and interventions, while promoting greater awareness among all its suppliers and other stakeholders by sharing information regarding its resource consumption, corresponding greenhouse gas emissions, and improvement actions. “The company’s commitment to continually improve its sustainability performance, including optimising the use of materials and resources at its sites and offices, and considering the entire life cycle of activities, will stand it in good stead and is an example worth following.” View the Excellent Meat Sustainability Journal on

Supporting industry to return to business unusual There is no better time to implement changes that can make your operations more efficient and sustainable. As industry gears up, the National Cleaner Production Centre South Africa (NCPC-SA) is there to help and advise. Through the implementation of resource efficient and cleaner production (RECP), companies can increase efficiencies and lower utility costs. Assessing your operations or production processes can lead to much-needed improvements: • RECP stimulates innovation i.e. new solutions that have substantive benefits • Resource savings translate directly into a reduction in production costs • Sustainability initiatives open up new markets • Quality and safety can be improved through systems such as an ISO 50001 energy management system • RECP implementation creates an opportunity to streamline processes If you are ready to embrace a new normal, contact us to take the first step. Services are subsidised and advice costs nothing.

Industrial Energy Efficiency Project AEE Energy Project of the Year 2020

We are currently not all in the office so please email us on ncpc@csir.co.za For more information, visit www.ncpc.co.za

THA 31-2020

The NCPC-SA is a programme that promotes the uptake and implementation of resource efficient and cleaner production (RECP), funded by the dtic and hoisted by the CSIR.

the dtic Department: Trade, Industry and Competition REPUBLIC OF SOUTH AFRICA

AGRI-FOOD

FOOD SECURITY IN SOUTH AFRICA

PEOPLE, PLANTS AND PLANET

Our country is grappling with the challenge of how to enhance the resilience of food systems to deal with sudden shocks like the pandemic and ongoing stresses like climate change. Meanwhile, hunger persists despite high agricultural productivity that should support every citizen’s nutritional needs.

THE CREAM OF THE CROP: Agriculture economy BY MELISSA MOORE, FUTUREGROWTH ASSET MANAGEMENT

outh Africa has a highly diversified, market-oriented agricultural sector that extends across various product ranges. Overall agricultural GDP growth is 13.1% year-on-year (relative to a 7% economic contraction for the country as a whole). This outperformance is underpinned by high levels of agricultural output following favourable production conditions; high commodity prices; strong export demand and a favourable rand exchange rate.

FUNDAMENTAL FACETS 1. VOLATILITY. Instability influenced by climate and social change. • Variable weather conditions and climate change cause a fluctuation in yields, which impacts the local and global supply dynamics. This creates volatility in volumes and crop prices. • Geopolitical influences and government actions: o Global supply and demand pressures emerge when governments take actions to subsidise production or when they ban exports due to concerns about domestic supplies. The US-China trade tensions were a source of volatility for certain agricultural commodities. o Locally, policy uncertainty around land expropriation has had an impact on the ability to access capital investment in the sector. o Changing consumer preferences. 2. COMPLEXITY. Agriculture is not homogenous. There are different crops and food types, each with their unique and fragmented

supply chains. There is diversity within each crop, in terms of how, where and by who it is produced. The complexity is intensified by environmental factors that influence regional and yearly production. 3. S CRUTINY. Role players in the agriculture and food value chain are under pressure to improve the traceability of the food we eat.

Agriculture that prioritises maximum productivity by exploiting natural resources will prevent us from meeting our growing demand for food and fibre on a sustainable basis.

Notwithstanding these complexities, agriculture is widely anticipated to be a vital driver of economic growth worldwide. Within a troubled global economy, the agri-food value chain sectors remain a strong outlier, driven by population growth, urbanisation and the rise of the middle class.

AGRI-FOOD

[ECO]NOMIC THOUGHT

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greeneconomy/the upshot

The changing interplay between food safety and environment

Covid-19 and the Food Safety/Environment Dilemma Tetra Pak Index 2020 Covid-19 is the number one concern for consumers worldwide, evidenced in recent global research. Against this backdrop, economic worries have seen a sharp upturn, reflecting widespread uncertainty about the impact of the pandemic on the economy. Food safety has quickly moved up the list of consumer priorities and is now seen as a major issue for society. Consumers believe that improving food safety is not only the responsibility of manufacturers, it needs to be their priority. Consumers are looking for transparency and reassurance that this priority is being addressed. Many want to know everything they can about a product’s provenance and production process – highlighting a communication opportunity for brands. Concern for the environment remains strikingly powerful. More than two-thirds of consumers believe that we must change our habits quickly to mitigate further environmental impact. In this context, sustainable packaging remains key, rated a top expectation from manufacturers. [Excerpt from foreword]

Food waste is rising up the agenda

Sustainable packaging matters

Convergence is on the increase

Factors influencing the future of packaging

EXPORTS ON THE UP

OPPORTUNITIES ABOUND

The South African agricultural sector remains a net exporter, with exportable volumes of various commodities growing annually. In 2020, South Africa’s agricultural exports hit $10.2-billion, a 3% increase from the prior year and the second largest level on record. Simultaneously, agricultural imports fell 8%, leading to a 26% annual increase in the agricultural trade surplus, which widened to $4.3-billion in 2020. Citrus, as a sub-sector, experienced a notable increase in demand due to the pandemic-related demand for vitamin C. Citrus exports hit a record high in 2020, with South Africa cementing its position as the secondlargest exporter of fresh citrus in the world, after Spain. This follows a period of citrus production growth in response to a spike in global demand and the attractive investment returns and profit margins – expected to be sustained beyond 2021.

In line with global trends to meet the rising food demand driven by population growth, local agricultural research and development (R&D) could contribute towards higher yields and lower post-harvest losses. Many regions globally have reached their agricultural land expansion frontiers, such that increasing agricultural output requires increased productivity. Optimising yields through intensive input use, new cultivars and better production practices will hopefully increase agricultural sustainability and resilience in the longer term. A growing focal area for R&D, according to agricultural economist Dr Thulasizwe Mkhabela, relates to zoonotic diseases, food-borne pathogens, and vaccine development for livestock diseases. There is scope for the development of agri-tech, particularly those that address the needs of smallholder farmers.

THE MOMENTUM CONTINUES

The logistics industry The anticipated growth in agricultural exports will place pressure on infrastructure, from handling facilities to transport and the shipping ports. Industry players are concerned over the country’s logistics systems, after struggling with port congestion and a shortage of refrigeration equipment in recent years. The long-term prospects for this significant sector require that we overcome current operational inefficiencies. We need an efficient and cost-effective logistics industry that can facilitate the movement of commodities, not only between provinces, but also to export markets. This presents an opportunity for infrastructure investment in the sector.

THREATS TO BIOSECURITY

WATCH NOW

Higher yields expected • Favourable weather has resulted in increased summer crop plantings. The country could export an estimated 2.8-million tons of maize in 2021/2022, the largest volume since 1994/1995. • Wine grape production is expected to be larger than in 2020. • The South African citrus industry should break all previous export season records with an estimated 158.7-million cartons in 2021, up from 146-million cartons in 2020. The high yields for the sector should curtail food and overall consumer inflation – and enhance the sector’s contribution to GDP.

Plant health is intrinsically linked to the survival of our planet and all that live on it. If we care about the eradication of poverty, the critical nature of food security, and the importance of nutrition, then we care about plant health. Watch The National Science and Technology Discussion Forum on plant health in SA.

AGRI-FOOD THE ESSENCE IS ESG If unchecked, the negative impacts of agricultural development that prioritises maximum productivity by exploiting natural resources while disregarding the complex hidden costs (financial and otherwise) of food production, will prevent us from meeting our growing demand for food and fibre on a sustainable basis. The long-term health of the agricultural sector relies heavily on the sustainability of farming methods. Farming practices must not only ensure profitable yields but also the wellbeing of the factors of production: environment, workers and surrounding communities.

LAND REFORM The general perception is that government’s execution of land reform strategies has been poor, resulting in various failures. Without a clear land reform policy framework that is well-executed, the inequalities of the

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THOUGHT [ECO]NOMY

A more hands-on approach can advance food justice in the face of climate change. past will continue to increase – and we run the risk that the core of the commercial agricultural sector, a key driving force of the economy and food security in the country, will collapse. Robust and transparent criteria for awarding land is critical to create confidence in a corruption-free process. For emerging farmers to access capital to develop land, blended finance models need to be developed between government and the private sector now. Strong public-private partnerships will be crucial to the success of the reform initiatives.

Urban lockdown lessons for South Africa: INSIGHTS AND OPPORTUNITIES FOR EQUITABLE FOOD SYSTEMS | Published by WWF – World Wide Fund for Nature. [2020]

Covid-19 has brought the fragility of urban food systems into sharp focus. South Africa presents an important case study to demonstrate the role of urban food systems in supporting a more equitable global food system. South Africa’s local government sphere has no discrete formal mandate to address foodgreeneconomy/report recycle security issues. The research provides a snapshot of the difficulties that come with this “absent policy mandate” for urban responses towards the current and future impact of global climate change on these systems (page 5). Starting at city level is a good place to initiate a dialogue on food-system transformation. City impacts are significant due to high poverty rates and burdens of chronic, non-communicable diseases. The pandemic has shown that an inability to withstand stresses in the food system is due to on-the-ground social inequality, no access to resources, poverty, poor infrastructure, lack of representation, and inadequate systems of social security, early warning and planning. If cities and towns are to develop in ways that are sustainable, climate resilient and equitable, capacities and mechanisms are needed that will deliver information into complex technical and political urban decision-making processes. The disruption of food systems due to Covid-19 has foreshadowed the future impacts of climate change (page 15). The innovative work in some of the large cities in South Africa showcases how adaptation to climate change has been prioritised. The City of Cape Town, eThekwini Metropolitan Municipality and City of Johannesburg metros have included food-system resilience in their Climate Strategies and Action Plans. Although there is recognition of climate change by many smaller municipalities, evidence of action is limited (page 27). While being affected by environmental and economic externalities, the urban food system is also a driver of environmental change through waste, emissions and ecosystem degradation linked to food production and input extraction. If unchecked, these feedback loops further reinforce food-system instability and vulnerability to shocks (page 18). Recommendations in the report address six fundamental challenges: food trade, value chains, health and the built environment, informality, and climate change (page 20). © Text 2020 WWF South Africa

Equity in a climatecompromised world

Features of the urban geography

Food-system governance

Report considerations

READ MORE REPORTS Run by the universities of Stellenbosch, Cape Town and Witwatersrand, the National Income Dynamics Study Coronavirus Rapid Mobile Survey (NIDS-CRAM) surveys the impacts of Covid-19 in South Africa. Click this box to download presentations.

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AGRI-FOOD

QUALITY TESTING FOR THE

AGRICULTURAL INDUSTRY:

AN IMPORTANT LINK IN THE VALUE CHAIN Informed business, economic and social decisions in the food and feed value are based on information on the quality of the commodities being used as raw materials and that of the final products. The quality can only be assessed when accurate measurements are available that also ensure food safety, and finally support trade. BY WIANA LOUW, SAGL*

he Southern African Grain Laboratory (SAGL) NPC, established in 1997, has a Crop Quality and a Crop Protection division. Both divisions are accredited under the international ISO/IEC 17025 standard and the crop protection division also complies with the OECD Principles of Good Laboratory Practice (OECD GLP). To confidently provide accurate, reliable, and comparable measurement results, testing laboratories can implement a range of measures including, but not limited to compliance with quality standards such as ISO/IEC 17025 for testing laboratories. Globally, there is an increased emphasis on food security and food safety with growing population numbers putting pressure on natural resources to provide enough safe food and feed. As a result, the spotlight also moved to reliable testing results as an integral part of improved production, management, and early warning systems. The South African National Accreditation System (SANAS) conducts surveillance audits at regular intervals to confirm the laboratory’s compliance and during these assessments, new methods and technical signatories are also evaluated to be added to the scope of accreditation. Since 1999, the SAGL complies with this international standard and received accreditation from SANAS. The SAGL uses measurement standards or reference materials as prescribed in the standard to confirm technical competence and to ensure international comparability and demonstrates continued method performance through participation in relevant proficiency testing schemes and the use of appropriate quality control materials. The Crop Quality Division performs national crop quality surveys on wheat, maize, soybeans, sunflower and grain sorghum and offers specialised analyses on food, feed and related products. Results of these surveys can, for example, be used when recommendations need to be made with regards to changes to regulations, such as grading regulations.

Globally, there is an increased emphasis on food security and food safety with growing population numbers putting pressure on natural resources to provide enough safe food and feed.

It can also be used when value chain studies, with the purpose of implementing improvements, are conducted. The division’s scope includes grading of grains and oilseeds, nutritional analyses, dough quality and baking tests on wheat flour, multi-mycotoxin analysis (using LC-MS/MS), vitamin and mineral analysis and amino acid analyses. The division also offers research support to industry for product and method development, training courses covering theoretical and practical laboratory training and proficiency schemes to local and international participants. The grain and oilseed industry use reliable quality data on agricultural commodities when marketing these products locally, but even more importantly, to prospect customers in the rest of the world. Customers submit samples to the laboratory to support their internal quality control processes and make use of calibration samples prepared at the SAGL to evaluate the accuracy of their equipment and the competency of their employees. They also participate in the proficiency schemes offered by the SAGL. The Crop Protection division analyses agricultural formulations and technical material (5-batches) for registration and conduct quality control analyses of plant protection products according to international standards. The concentrations of the active ingredients and impurities are determined using either Gas Chromatography (FID)/(MSD) or High-Performance Liquid Chromatography (DAD). Other tests include water content, particle size using laser diffraction, density, viscosity, pH and flash point. An important goal of the SAGL is to continuously improve the quality of the testing while increasing the sample throughput with the implementation of new technology, training of the laboratory staff and improved quality systems. We conduct investigative and research studies to find solutions or suggest alternatives to current processes. To access quality data on soybeans, sunflower, grain sorghum, wheat, and maize, please visit the website or contact the SAGL where our friendly staff will gladly assist you. www.sagl.co.za *Wiana Louw is general manager at Southern African Grain Laboratory

The Southern African Grain Laboratory NPC is an independent ISO/IEC 17025 accredited laboratory, acting as reference Laboratory for the South African Grain Industry. The Crop Quality Division focusses on grain and oilseed quality analysis: • Grading & Milling • Nutritional analyses • Rheology & Baking • Vitamins, Minerals & Amino Acids • Mycotoxins The SAGL also have a Crop Protection Division with ISO/ IEC 17025 accreditation and OECD GLP Compliance for analyses on plant protection products: • 5-batch testing • shelf-life testing Celebrating 25 Years of • treated seed Excellence Grain Building – Agri-Hub Office Park 477 Witherite Street The Willows 0040 Tel: +27 (0) 12 807 4019 E-mail: info@sagl.co.za

SMART MINING

To be

ORE

not to be A low-carbon future will be mineral intensive as clean energy technology needs more materials than fossil-fuel-based generation technologies. Ambition on climate change goals requires more of these technologies and will lead to a larger material footprint.

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Excerpt from MINERALS FOR CLIMATE ACTION: The Mineral Intensity of the Clean Energy Transition

LINK FOR ABOVE PLEASE

inerals by their production (how they are extracted) and by their consumption (their wide use in everyday life) can have both positive and negative impacts on different aspects of sustainability. The negative impacts make it imperative that these materials be responsibly sourced, to meet the wider sustainability agenda. Raw materials are an important element of the sustainability debate. According to the OECD’s Global Material Resources Outlook to 2060, the use of material resources grew form 27-billion tons in 1970 to 89-billion tons in 2017. The OECD forecasts that in the absence of new policies, material resource use could reach 167-billion tons in 2060, with the largest increase seen for metallic ores, followed by non-metallic minerals. The mining sector accounts for approximately 2-11% of total global energy consumption, while 70% of mining operations from the six largest mining companies are in water-stressed countries (IFC and ICCM, 2017). Adopting climate-smart mining practices would further reduce the overall sector’s carbon and environmental footprints.

Low-carbon technologies Solar photovoltaic (PV), wind, and geothermal are more mineral intensive relative to fossil fuel technologies. About 3 000 solar panels are needed for 1MW of capacity of solar PV. A 200MW solar project could be as big as 550 American football fields (Mathis and Eckhouse, 2020). Production of graphite, lithium, and cobalt will need to be significantly ramped up by more than 450% by 2050 to meet demand from energy storage technologies. Production figures for base minerals, like aluminium and copper, are significant, at 103-million tons and 29-million tons by 2050, respectively. Projections do not include the associated infrastructure needed to support the deployment of these technologies (transmission lines) or the physical parts (the chassis of newly-built EVs).

SMART MINING Demand risks Cross-cutting minerals (copper, chromium, and molybdenum) are used across a wide variety of energy and storage technologies and have stable demand conditions. Molybdenum and copper are used in more than eight technologies. Even with technological improvements, costs reductions, and deployment of emerging technologies, there would be little impact on their overall demand. For copper, the greatest share of demand comes from solar PV and wind, but demand may be underestimated as it does not include the transmission infrastructure needed to connect these technologies to electricity grids.

Concentrated minerals (lithium, graphite, and cobalt) are needed only for one or two technologies. Technological disruption and deployment could significantly impact their demand. These minerals are primarily used in energy storage and have the highest demand figures. Storage has the highest level of uncertainty post-2030 given the number of sub-technologies currently at the R&D and pilot stages, as well as different policy choices and market forces. Concentrated minerals have the highest level of demand risk, particularly for producers of these minerals. Certain minerals face higher levels of changes in demand from the shift to a low-carbon future. Graphite and lithium demand are so high that current production would need to ramp up by nearly 500% by 2050 to meet demand.

Demand for aluminium for 2050, makes up 9% of current production levels, but aluminium is used across a broad range of technologies, making it less susceptible to changes in deployment. Understanding these demand risks is crucial for mining and energy industries that must be adaptive to rapidly evolving energy technologies.

Demand shifts Solar PV will account for most of the aluminium demand from energy technologies (87%), while wind and geothermal will account for most zinc and titanium demand, at 98% and 64%, respectively. Solar and wind, combined, account for 74.2% of all copper demand, while battery storage accounts for all graphite and lithium demand. Substitution effects, such as efficiency improvements, could have strong impacts on the demand for individual minerals, like indium, based on which sub-technology ends up being most widely deployed up to 2050. Factors that drive substitution effects include market dynamics, availability of minerals, technological improvements, and costs. New technologies such as offshore wind, green hydrogen, or solid-state batteries may change the shape of the future. These technologies require different minerals and carry different demand implications but given that they are generally more material intensive than their fossil-fuel-based counterparts, overall demand for minerals will still increase. Their carbon and material footprints cannot be overlooked. While increasing the share of renewable energy is one of the most effective ways of decarbonising the electricity sector, countries who have committed to the Paris Agreement need to address the mineral intensity of clean energy technologies. Emissions from the operation of renewable energy and storage technologies are just 6% of coal and gas generation. They account for 16 gigatons of carbon dioxide equivalent (GtCO2e) emissions up to 2050. Aluminium, graphite, and nickel production for energy technologies account for a cumulative 1.4GtCO2e up to 2050, nearly equivalent to the total 2018 C02 emissions from France, Germany, and the UK combined. Greening the power sector and battery production requires that upstream and downstream emissions-related challenges from renewable energy technologies be meaningfully addressed through policy.

The RE-SOURCING Project aims to build a global stakeholder platform for responsible sourcing in mineral value chains. The project addresses the challenges that businesses, NGOs, and policymakers are facing in a rapidly evolving ecological, social, business and regulatory world.

[ECO]NOMIC THOUGHT

The International Responsible Sourcing Agenda: STATE-OF-PLAY [April 2020]

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greeneconomy/the upshot

Sustainability, raw materials and resourcing

This working paper provides an overview of the current state of responsible sourcing practices related to the extraction of minerals and their processing (page 10). The report outlines the challenges that have been identified in the economic, social and environmental spheres and analyses the approaches to responsible sourcing that are attempting to address these (page 11). It considers the role that key actors play in the uptake of responsible sourcing practices (page 16). In the second half of the document, the focus shifts to issues for responsible sourcing in three key sectors: renewable energy (page 27), mobility (page 29) and the electric and electronic equipment sector (page 33).

Global value chains

Current approaches to responsible sourcing

Resources and circular economy

Summary of report

SMART MINING

The path to BEING BETTER

STEWARDS OF THE EARTH

European countries are working towards sourcing their future minerals supply in a more responsible way, but the challenge is to ensure that vulnerable stakeholders along the value chain are not left out of the conversation. BY SRK CONSULTING

he RE-SOURCING Project aims to promote responsible sourcing through creating roadmaps for the renewable energy, mobility and electronics sectors in the EU. Funded by the European Commission under the Horizon 2020 project, RE-SOURCING is pursuing its goal by building a responsible sourcing community among a range of global stakeholders. “On the strength of our historical involvement in the mining sector, SRK Consulting has been drawn into the RE-SOURCING process, where our role includes facilitating the engagement of stakeholders in Africa and Asia,” says Andrew van Zyl, partner and principal consultant at SRK Consulting. These zones, along with South America, are key mineral-supply regions whose input to the consultation process is vital, adds Van Zyl, noting that the areas have wrestled with a range of ESG issues that relate to responsible mineral sourcing, such as artisanal mining and community engagement. “A significant amount of mining best practice is in fact emerging from developing countries that host mining sectors, which is what we are looking to feed into the RE-SOURCING process,” he explains. Key among the concerns of the responsible sourcing agenda is environmental degradation, carbon emissions and climate change. The recent United Nations IPCC report on climate change – which confirms the severity of global environmental impacts – certainly raises the urgency around the achievement of concerted world-wide action to reduce global warming. With most of the mining – that is, upstream activities in the mineral value chain – conducted in emerging economies, and a significant portion of downstream beneficiation and manufacturing occurring in wellestablished economies, the stakeholders on different sides of this divide can often have differing interpretations of “responsibility” in the sourcing process. According to SRK principal consultant ESG Lisl Pullinger, this means that charting an optimal path to the future requires the voices not just of the primary mineral consumers but among the producing regions. “A representative spread of stakeholder voices will help ensure future policies do not unintentionally remove value along the value chain of mineral production,” says Pullinger, “Especially where livelihoods may be more vulnerable to changes introduced by new standards or hurdles to market participation.” Mindful of the complexity of finding common ground for progress, RE-SOURCING is a multi-year process that works towards harmonising of concepts in search of a global definition of responsible sourcing. This will involve joint learning from innovative business cases around the world. Bjanka Korb, senior engineer at SRK Consulting, highlights that hearing different perspectives was an essential aspect of the current process – so that all the implications of future responsible sourcing frameworks are well considered before decisions are made and plans rolled out. “There is undoubtedly a resounding call for action on global threats like climate change and any proposed actions need careful thought in

Above, Lisl Pullinger. Left, Andrew van Zyl and Bjanka Korb from SRK Consulting. terms of their impact on vulnerable groups,” said Korb. The danger that the RE-SOURCING process is working to avoid, is the development of a path towards a green economy at the cost of those in the mineral supply chain who are most vulnerable, says Pullinger. “The terrain of the responsible sourcing discussion includes a range of complexities around historical economic development trajectories, making many stakeholders weary about who will benefit most from the policy outcomes,” she says. “It is, however, a necessary engagement if we are to find shared solutions to global challenges like climate change and economic inequality.” The current reality of environmental degradation, says Van Zyl, results in large part from many countries “consuming cheaply” in the past – shifting the externalised costs onto future generations. “That bill has now come due, and the cost of the externalities needs to be addressed – which includes becoming better stewards of our planet going forward,” he adds. Among the planned events of the RE-SOURCING initiative is a Roadmap Workshop on the Mobility Sector, to be held virtually in October this year; Roadmap 2050 focuses on the key value chain steps of the Li-ion battery: mining, cell production and recycling.

RE-SOURCING Virtual Conference: ON THE ROAD TO RESPONSIBLE RESOURCING – How to achieve lasting impact 8-10 NOVEMBER 2021 The conference will provide you with the latest on responsible sourcing through a mix of expert presentations and panel discussions.

ENERGY

FUNDING THE SUN

Solar PV financing options for industrial and commercial businesses

As years of mismanagement at energy utility Eskom results in continued power outages and energy tariff increases across South Africa’s industrial and manufacturing sectors; domestic businesses are increasingly looking to renewable energy alternatives to power their commercial operations.

ooftop solar PV systems are progressively being considered the most readily accessible off-grid energy solution in South Africa. According to the DFFE, South Africa’s solar resource is one of the highest in the world, with an annual 24-hour global solar radiation average of about 220W/m2. When this is considered alongside the 300% increase in domestic electricity prices over the last thirteen years, the growing trend towards solar for businesses appears inevitable. According to renewable industry organisation GreenCape, rooftop small-scale embedded solar generation systems remain the dominant renewable energy technology in South Africa due to price, technical maturity and ease of implementation. The installed capacity of solar PV rooftop systems in South Africa has increased from 387MWp in 2017 to approximately 1.35GW in 2020/21. On the back of such significant market growth, numerous financial mechanisms to fund larger commercial and industrial solar PV installations and operations have emerged in recent years, including Power Purchase Agreements (PPAs), fixed-roof rentals, lease or rental agreements, upfront capital investment, and bank financing options. With the adoption of solar PV systems by commercial and industrial businesses now mainstream, a significant consideration for these companies is selecting the most appropriate funding option for their solar project.

POWER PURCHASE AGREEMENTS PPAs are a popular choice among commercial and industrial consumers, since the installation, operations and maintenance of the system are fully covered by the solar services provider. Most often, this funding mechanism includes insurance and performance guarantees, with the biggest advantage being reduced electricity costs from day one. This allows business owners to enjoy the benefits of clean energy from a solar PV system installed at their premises, at no upfront cost. “A PPA includes the installation of a fully operating solar system but removes the hassle of having to maintain, monitor, operate and clean the system for years to come. Business owners can now enjoy solar energy and the savings it will generate with zero capital expenditure or operating risks,” explains SolarAfrica chief investment officer, Charl Alheit.

Following the signing of a long-term agreement, a solar tariff is billed monthly, based solely on the amount of energy the business produces. This tariff increases annually at a fixed escalation, allowing businesses to accurately predict future energy costs. “This tariff is up to 40% cheaper than the national grid, providing significant savings each month and over the lifetime of the agreement,” Alheit adds. Businesses that use large amounts of daytime power and operate five to seven days a week are likely to generate the highest savings from this funding model. While ownership of the solar system will remain with the service provider until the end of the agreement, business owners have the option to purchase the system during the term of the agreement. Various exit options are available should a business owner wish to end the agreement earlier, while any damage to the solar system will be fully covered by insurance.

FIXED ROOF RENTAL Fixed roof rentals have become a favoured choice for the owners of commercial shopping centres and strip malls, as a long-term roof rental agreement monetises their previously unused roof space. The solar services provider pays a fixed monthly payment to the property owner for the use of the building’s roof space, which also produces solar energy for the property. The property owner pays the solar services provider for the energy used based on Nersa or municipal rates, while all other costs, such as system maintenance, operations and insurance, remain with the services provider.

EQUIPMENT RENTAL Under a solar lease agreement, also known as an equipment rental, the installation, maintenance and management of the solar panel and its components is paid for by the solar PV provider, while the business pays a fixed monthly lease payment for the duration of the lease term. The monthly payment is determined based on the estimated annual production of the solar system. A lease agreement is unlike a PPA in that the consumer pays a fixed monthly amount rather than agreeing to purchase the power generated

ENERGY UPFRONT CAPITAL INVESTMENT Companies able to fund their solar PV project from existing cash reserves may find the upfront costs startling but the benefits appealing. A mediumsized commercial system of 200kWp currently costs between R1.9-million and R2.1-million, excluding battery costs. Benefits to cash-funded systems include VAT deductions, as well as Section 12b tax benefits and carbon credits, which can result in additional cost savings of up to 28%. “However, the business is also solely responsible for all ongoing annual costs, such as installation, insurance, performance monitoring and management, which can amount to a minimum of R88 500 per year, along with exposure to the performance risk of the system,” explains Alheit.

BANK FINANCING Responding to increased interest by industrial and manufacturing energy consumers in solar PV solutions, several local banks have structured innovative finance agreements. Absa, Nedbank, Standard Bank and FNB all offer loans for solar PV installations, with primary instruments being term loans, instalment sales agreements, asset and property finance, mortgage-backed business loans and access bonds. The lending period for commercial installations ranges between five and 10 years, while the collateral requirement for the debt funding is often taken against the underlying property and the system. “The challenge with receiving finance from the banking sector is that since they don’t specialise in solar PV ownership, the solar production risk will remain with you and your monthly repayments will be fixed, irrespective of the system’s performance. Further, you could be using up valuable credit lines with the bank,” concludes Alheit.

Comparison of costs between a PPA and a solar system cash purchase.

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by the system at a set price per kilowatt-hour. “Your monthly solar lease agreement payments remain the same throughout the year, and the risk associated with the volume of solar energy produced and consumed resides with the property owner,” says Alheit.

SOLAR PV AND THE VALUE OF YOUR HOME Read this article for a new perspective on the potential long-term value that you can create by installing a solar PV system in your home. KEY TAKE-OUTS - Why the reliability, affordability and sustainability of solar PV makes it a viable and valuable addition to your home - Trends in the South African residential property market - Current challenges caused by Eskom’s service - S aleability and sales premium of adding a PV system to your home

ENERGY

FROM BITS TO WATTS According to The Global Carbon Atlas, South Africa is the 12th biggest emitter of greenhouse gases on the planet. It is clear that the country needs to reduce its carbon emissions and accelerate the growth of renewable energy across the region to ensure an affordable and reliable energy supply.

“I

n sub-Saharan Africa, more than 50% of the population still don’t have access to electricity,” said Huang Su, CEO of South Africa Digital Energy Business, Huawei. “Beyond that, thousands of hospitals and schools don’t have a stable power supply. This can easily become disastrous.” While South Africa is the leading power on the continent when it comes to power generation, Su points out that it’s currently unable to meet all its electricity demands all the time. “There is still a massive gap to be bridged,” he says, “We have to ensure we provide sufficient electricity to every African household.” To achieve this, Huawei is backing renewable energy coupled with technology-driven data and intelligence. As Su points out, renewable energy is much cheaper than fossil-fuel-based options, with a kilowatt-hour of solar power costing less than a rand in South Africa. It is clear then, that solar power should – and likely will – play a large role in the world’s future power mix.

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[ECO]NOMIC THOUGHT

greeneconomy/the upshot

That is just one of the reasons why Huawei has invested heavily in smart photovoltaic (PV) solutions. By integrating AI and Cloud, Huawei has incorporated its ICT expertise with PV for optimal power generation. This allows for the construction of highly efficient, safe, and reliable solar power plants with smart O&M and grid supporting capabilities. “Huawei is already a household name in the ICT world,” Su says. “All ICT requires power supply and Huawei has always provided that to one degree or another. Our efforts in the solar PV space are simply an extension of that.” “Over time, Huawei will deploy more and more scalable power stations,” he adds. “These power stations can be managed and maintained online, further reducing their carbon footprint.” “We are uniquely positioned to bring electricity, power supply, and data management together,” he concludes. “The journey from bits to watts is accelerating and we plan on leading it.”

TOP 10 TRENDS OF DIGITAL POWER | Power Digitalisation, Creating New Values | Whitepaper released by Digital Power Industry Work Group, Huawei Technologies With the rapid development of the digital world, the number of data centers and sites are increasing rapidly. Digital and intelligent technologies can effectively improve power generation, maintenance, and energy efficiency, helping to achieve the goal of carbon neutrality. In the coming decade, digital power will be a vital component in the evolution and upgrade of vast domains from ICT to electrical vehicles and solar power. Digital power modernisation will be at the foundation and will be applicable to large diaspora from rural, suburban, and diverse industries such as mining and smart factories. In December 2020, a number of authoritative experts and scholars in the digital power industry established a workgroup to discuss the energy digital transformation, and jointly released the Whitepaper on “Top 10 Trends of Digital Power” to provide strategic reference for the transformation and upgrade of the digital power industry.

POWER

RESIDENTIAL ELECTRICITY CONSUMPTION IN SA DMRE, SANEDI and UCT recently published a ground-breaking report on residential energy use. The study assesses the impact of energy efficient appliances on electrical energy consumption in South Africa.

n a global basis, the residential sector consumes one fifth of the world’s energy (IEA 2018:2) and has a large untapped potential to benefit from the multiple positive economic and social impacts of energy efficiency. These benefits include increased disposable income, poverty alleviation, improved health and wellbeing, better energy security and macro-economic benefits. Improved energy efficiency means that less energy is used while maintaining the same level of service or increasing service levels while maintaining energy use. In the residential context, efficiency improvements may be affected both by investments in technical interventions and by changes in behaviour. According to StatsSA, the residential sector in South Africa comprised of approximately 16.9-million households in 2016, of which about 86% were electrified. Electrified households consume roughly 17% of the country’s total grid electrical energy to provide energy services (DOE 2018:47), the most significant of which is resistive water heating. During peak periods, the residential sector accounts for up to 35% of national electricity demand. South African households are heterogeneous, and electricity use is not well characterised by averages. Appliance ownership, age, utilisation patterns and monthly spend on electricity all varies with household income. Poverty remains high and limits household electricity and appliance purchases. Almost 55.5% of the population were living below the Upper-Bound Poverty Line. The study found that South Africa’s Standards and Labelling (S&L) Programme was effective in achieving meaningful savings in appliance energy consumption between 2015 and 2020. The S&L

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[ECO]NOMIC THOUGHT

greeneconomy/the upshot

Programme provides information about an appliance’s energy efficiency with an easy-to-read label displayed on the front of the appliance. The initiative will continue to provide energy savings into the future as appliances reach their end of life, and consumers purchase newer, more modern and energy efficient appliances. The highest energy savings were seen in refrigeration by a hefty margin, especially in low- and middleincome homes. In 2018, Berkeley Lab developed the South Africa Energy Demand Resource (EDR) model in The Low Emissions Analysis Platform (LEAP), in collaboration with the DMRE, SANEDI and the UNDP. The EDR provides a comprehensive forecast of the energy savings and emissions reductions that could result from the implementation of minimum energy performance standards.

DEBATE BUSTERS •W hile dishwashers are likely to be more energy efficient than handwashing, this is only true for a fully-loaded dishwasher. • Induction stoves often consume large amounts of standby power and ultimately may consume more energy than an equivalent thermal plate. • A washing machine’s energy efficiency is typically measured based on energy used during its longer cycles, which is rarely used in practice. The more popular shorter and convenient cycle times tend to be less energy efficient.

RESIDENTIAL ELECTRICITY CONSUMPTION IN SOUTH AFRICA Research Project Report by SANEDI, DMRE and UCT [May 2021] In this study the electrical energy consumption of low-, middle- and high-income households is characterised within a South African Residential Sector LEAP model. Within each of these income groups, appliance penetration rates together with appliance average annual energy consumption estimates are used to approximate the national annual electricity consumption of the sector. The disaggregation of energy services and appliances within the model, expands upon those of the EDR model, and includes lighting, cooking, refrigeration, dishwashers, washing machines, tumble dryers, water heating, space heating, televisions, pool pumps, air conditioning and other plug loads.

09 28 61 Survey findings

LEAP model structure

Assessment of the S&L programme

Key recommendations

CIRCULARITY

Circular Economy in Energy:

WASTE HEAT TO ELECTRICITY

In this article we highlight the opportunities in a waste stream often overlooked – waste heat. While not a traditional commodity we would think of under the waste label, it is nonetheless just as important to recycle and perhaps even more economically viable to implement. BY CHRIS WHYTE, ACEN*

CIRCULARITY

his waste stream is found in multiple sectors like water, energy, manufacturing and agriculture. Waste heat is a vast, underutilised, and sustainable source of energy that has been largely overlooked in the past due to technological constraints and financial barriers. Heat sources can vary from waste heat escaping up flue stacks from coal-fired boilers through to hot water or steam from diesel engines in ships, mining applications, steel furnaces, boilers, and manufacturing industries. Heat is an essential ingredient to many processes and the key industries contributing the greatest emissions and carbon footprint are those associated with the bulk of our electricity from burning coal, the petrochemical industries, steel manufacture, cement production and other manufacturing industries. Huge energy reserves are used to create the heat required for these processes, so it simply makes sense to catch the waste heat off the end of the process and get it back into the grid. The latest technological innovations and systems are extremely efficient. When we think of the extremes of waste heat production one visualises the old ’80s movies of mid-western steel workers in the USA sweating over furnaces of molten steel. The reality now is that escape temperatures as low as 70°C can be harvested for conversion back to energy and this would service most conventional manufacturing facilities. Also, recent innovation and development in the application of organic Rankine cycle (ORC) and axial turbine systems allows for smaller-scale systems that can have modular energy outputs of anything from 75kW to 500kW with a return on investment at 36-48 months producing energy cheaper than current coal-based electricity. Benefits are that this energy is more reliable than renewables (the sun does not always shine, and the wind does not always blow) and provides reliable base load electricity.

Companies looking for clean affordable power that have a waste-heat source should consider implementing these systems for their power generation. The additional extension of this technology is that one can integrate these systems with your own heat source from incineration of problematic waste streams such as agricultural and forestry residues, plastics, and tyre waste. ORC systems can be used as small-scale concentrated solar power plants thus dramatically reducing the capital expenditure of the larger systems conventionally deployed globally. Simply put, the organic Rankine cycle and axial turbine systems capture waste-heat from different manufacturing processes and like a steam turbine turn this energy into electricity. As the ORC system uses a refrigerant gas that boils and expands at very low temperatures, the system will operate at temperatures between 70 and 150°C, which is a fraction of the heat required for conventional Rankine cycle and steam turbine systems. Another great feature is that this is a closed loop system so no contaminants can enter the system, and this extends the life of the plant. ORC systems produce emission-free clean power from waste-heat – it’s as simple as that. The waste-heat-to-energy market is set to exceed $30-billion by 2025 and yet the uptake is still low. This is largely due to a lack of knowledge of available technologies and the incorrect perception that this is only applicable to large-scale waste heat applications like steel manufacturing and coal power. The Rankine cycle is a thermodynamic cycle that converts heat into work. The heat is supplied to a closed loop, which typically uses water as a working

Energy efficiency will always play a role in combatting climate change because no matter the process, the more efficient it is, the less impact it has on the planet. fluid. The Rankine cycle based on water provides approximately 85% of worldwide electricity production. Steam-to-electricity has been around since modern industrialisation, but even ORC systems have been around for over 100 years. However, the latter have only really been deployed at any scale since the turn of the century. A resurgence of interest in the research and development of ORC as a viable small-scale solution for electrical production developed after the successful completion of the 1MW APS Saguaro PT plant in Arizona, USA in 2006. Since then, our 21st century engineering skills have continued to refine and develop these systems to the current applications where we can harvest low-volume, low-heat outputs with compact modular units with a footprint as small as 4m2 and outputs of up to 75kW. As the ORC and axial turbine systems use this waste-heat, it adds to the cooling of the hot water or air, and this helps the industries where they need to cool processes and less heat will go into the atmosphere. Coolingto-power is an effective means of increasing energy efficiency due to these systems consuming the waste heat as fuel, which significantly reduces the cooling load (70-100%). This means, in addition to generating emissionfree power, the parasitic cooling load also is reduced or even eliminated, further reducing costs and increasing efficiency. Companies looking for clean affordable power that have a waste-heat source should consider implementing these systems for their power generation. Being modular, this decreases financial risk and allows for scaling. Some companies that I work with will provide free evaluations and even financing options allowing the customer to avoid any initial capital cost with the ability to buy the power from their own waste heat at cheaper rates than grid-based options. Increasing energy efficiency is the single easiest step in pursuing a carbon-neutral future. Using an existing resource – heat – to provide power and cooling reduces fossil fuel consumption and reliance on the grid. ORC and axial turbine power generation is a sustainable technology that reduces the amount of energy consumed (fuel) and energy wasted (heat). Energy efficiency will always play a role in combatting climate change because no matter the process, the more efficient it is, the less impact it has on the planet. With the reliability and cost-effectiveness of modern systems, wasteheat recovery solutions such as cooling-to-power are both profitable and practical. With the world eyeing ways to shift toward clean energy and with the help of incentives promoting sustainability like the local Carbon Tax (Act 15 of 2019), cooling-to-power is primed to be a disruptive technology in the energy efficiency and commercial cooling market – effectively changing the way corporations see and use waste-heat. Don’t miss The Circular Economy Show every Wednesday at 1:00pm. Chris Whyte discusses all things circular with Gordon Brown and guests. Each episode provides an in-depth discussion based on sectoral topics.

* African Circular Economy Network

WASTE

THE ROAD TO SUSTAINABILITY The use of waste materials in South African road construction The Council for Scientific and Industrial Research has recently been involved in several new research initiatives geared towards providing alternative waste material products, specifically to be used by the asphalt pavement industry in South Africa.

he research focus of the CSIR has been centred around creating a more inclusive and sustainable approach to future road construction, particularly through increasing the potential for job creation, increasing economic benefits, producing better performing roads and trying to resolve South Africa’s environmental challenges. One of the CSIR’s recent successes has been around the adoption of locally produced waste alternatives (opposed to importing costly conventional road and waste products).

CASE STUDY ON THE SUSTAINABLE USE OF RECYCLED TYRES Construction of a road section in Roodepoort, Gauteng

In 2019, the CSIR in collaboration with Much Asphalt (Pty) Ltd successfully constructed a road trial section in Roodepoort using locally available micro-fillers and recycled tyres. The project came to fruition when both products under development were successfully paved into a controlled road trial section, after a year of combined laboratory development and rigorous evaluation. The 200m long trial section includes a 60mm modified enrobés à module élevé (EME) base layer and a 40mm modified bitumen-rubber asphalt layer that was constructed over a cleaned gravel base. This layer was treated with a SS60 tack-coat prior to paving. The location of the trial section specifically allows for continual performance monitoring, which includes up-to-date details on the distribution and volume of traffic that moves across the section. Georges Mturi, CSIR’s project manager speaking on the success of the project: “During both the development and trial phase, several performance characteristics were evaluated as predictors of in-situ performance, which served as the baseline for the performance evaluation that were set to run on a three-month basis for a period of one year after construction.” In this regard, he adds “The evaluations and visual inspections have shown that after nine months of traffic and environmental exposure, the layers are performing as expected.”

Construction of road trial section made from recycled tyres. To date, no edge breaking is present where heavy vehicles are moving onto and off the surfacing, no permanent deformation is present on the surfacing (particularly at stopping locations and where regular vehicle turning takes place) and, lastly, there are no signs of any deflection or temperature-induced crack formations taking place. Joanne Muller, regional laboratory manager at Much Asphalt says, “The developed and trialled technologies aimed at improving the performance properties of standard 10/20 based EME, while also acting as a viable replacement product for standard styrene-butadiene styrene (SBS) modified A-E2 binder, without detracting from pavement performance. These are deemed effective as they can assist industry practitioners in their endeavour to provide long-lasting pavements to society.” Overall, the project is aimed at assisting bitumen users, asphalt manufacturers and other intermediary bitumen suppliers. It is expected that the technology will enable the correction of poor bitumen to pass performance specifications. Additionally, the technology may also improve the performance of standard bitumen from one grade to another, especially in the event of national bitumen shortages. It is also important to highlight that a major benefit of this invention would be an increase in the recycling rates of waste tyres in South Africa, which will ultimately lead to better-performing roads and a greener environment.

WASTE

CASE STUDY ON THE USE OF WASTE PLASTIC

Construction of road sections on Road P159/1 (R80) in City of Tshwane, Gauteng The CSIR, along with the Department of Science and Innovation (DSI), as well as the plastics and roads industry, have recently worked on a demonstration project in South Africa to evaluate the feasibility of using waste plastic in road construction. The project aimed to identify lowvalue plastic types and evaluate their potential usage in asphalt road surfacing in accordance with South African road design standards and environmental conditions. The culmination point for the project was the construction of Gauteng’s first “waste plastic” road trial section, currently located on

the R80. This trial section was used by the CSIR’s Smart Mobility Cluster for proof-testing plastic-road technology in South Africa. The CSIR has to date successfully completed a full-scale research investigation and laboratory programme that was validated through Heavy Vehicle Simulator (HVS) testing. The project’s sponsors and key stakeholders from the DSI, Roadmac Surfacing (Pty) Ltd (Raubex Group) and Much Asphalt were crucial in supporting the CSIR’s project team throughout construction. Although technical findings from the project are still currently being published, the CSIR’s project team stated: “The project has successfully showed potential in using specified waste plastic materials to design rut resistant asphalt mixes without compromising on other asphalt performance requirements. The approach requires the adoption of necessary criteria to establish a consistent source of waste plastic.” The research project highlights the need to understand the mechanism that improves rut resistance to ensure that this benefit is realised through controlling performance criteria and handling of the asphalt mix. The research identified requirements for measuring additional asphalt properties that would quantify the contribution of the asphalt layer to safety, health and environmental sustainability. Project team included: Georges AJ Mturi, Johan S O’Connell, Imraan Akhalwaya, Theresa George, Vincent O Ojijo, Tladi Mofokeng, Nonzwakazi Ncolosi, Michandre Smit and Linda Godfrey.

The end of the road

Construction of road trial section made from waste plastic.

Feedback from these case studies is aimed at encouraging government and road industry stakeholders to adopt the use of waste materials for environmental benefits, as well as for the improved performance of road surfaces. The technologies will require the development of application guidelines to promote a better understanding of the suitability of waste materials for road projects and therefore lower the risk of premature failure of roads.

WASTE

SA PREPARES FOR CLEAN-UP & RECYCLING SA WEEK Plastics SA is calling on South Africans to participate in the annual Clean-Up & Recycle SA week from 13 to 18 September. Highlights of this week will be River Clean-Up Day (15 September), National Recycling Day (17 September) and the International Coastal Clean-Up Day (18 September) BY PLASTICS SA

part from raising awareness and supporting clean-up initiatives by donating refuse bags, gloves and other equipment needed, this will also be the 25th year that Plastics SA will be coordinating South Africa’s participation in the International Coastal Clean-Up Day – the world’s biggest volunteer effort for ocean health. “Clean-Up & Recycle SA Week has become a highlight on our country’s environmental calendar. This annual public awareness week is supported by all the packaging streams in South Africa and encourages citizens, corporates and municipalities to help remove all visible litter from our country’s neighbourhoods and streets, rivers, streams, beaches and oceans,” explains Douw Steyn, Plastics SA’s sustainability director. Plastics SA is hoping that this year will see a repeat of the huge success of last year’s Clean-Up & Recycle SA Week. Even though Covid-19 restrictions prohibited the large groups at public clean-ups and gatherings that have become synonymous with this public awareness and volunteer effort, the spirit of camaraderie, positivity and willingness to make a difference in our environment, definitely made this one of the most memorable years. “Like last year, we are once again advocating that South Africans be eco-warriors in their own neighbourhoods by picking up any litter on our beaches or strewn in streets, rivers, streams or canals. Where community clean-ups are planned, we urge the organisers to adhere to safety protocols by limiting the numbers of volunteers participating, ensuring that participants wear their masks, checking that they maintain social distancing and that enough sanitising stations are in place,” says Steyn. Highlights of the 2020 Clean-Up & Recycle SA Week included the launch of the Inkwazi Isu (Fish Eagle Project) by the KwaZulu-Natal Marine Waste Network South Coast and the participation of Barbara Creecy, Minister of the Department of Forestry, Fisheries and the Environment (DFFE) in a

beach clean-up at Dakota beach, Umbogintwini in KwaZulu-Natal, where 697 bags were collected with a weight of over 2.4 tons. In the Cape provinces, several hundreds of kilometres of the country’s coastline were cleaned in more than 72 audited clean-ups, while several more non-audited, informal clean-ups took place during the week. Fifteen 4x4 clubs hosted their clean-ups, as did several diving groups who hosted underwater clean-ups. In the Cape provinces, twenty tons of litter were removed, separated and sent for recycling on International Coastal Clean-Up Day. “South Africa and the rest of the world continues to go through a very difficult period in our history as we are still trying to beat the ravaging effects of the Covid-19 pandemic, lockdowns, riots and public disturbances. However, each year the Clean-Up & Recycle SA week manages to restore hope as South Africans of all ages and walks of life unite their efforts and volunteer their time and energy to help make South Africa a brighter, cleaner place for all,” Steyn concludes.

Like last year, we are once again advocating that South Africans be eco-warriors in their own neighbourhoods by picking up any litter on our beaches or strewn in streets, rivers, streams or canals.

For more information about Clean-Up & Recycle SA week and where organised clean-ups will take place during September 2021, visit www.cleanupandrecycle.co.za or www.plasticsinfo.co.za

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Green Economy Journal Issue 48

Articles inside

SA prepares for Clean-up and Recycling SA Week with Plastics SA

WASTE The road to sustainability

CIRCULARITY Waste heat to electricity

POWER Residential electricity consumption in SA

From bits to watts

ENERGY Funding the sun

Quality testing for the agricultural industry by the Southern African Grain Laboratory NPC

Swartland: use wood and save trees

To path to being better stewards of the earth by SRK Consulting

AGRI-FOOD Food security in SA people, plants and planet

PRODUCTION Meet NCPC excellence in resource efficiency

RESPONSIBLE INVESTING

Smart cities promote best practice in sustainability

ENERGY The role of women in SA’s energy space

Making sense of sustainability

SMART CITIES Lanseria Airport: set for new heights

MOBILITY Toyota RAV-4 goes Hybrid

THOUGHT LEADERSHIP

NEWS & SNIPPETS