Green Economy Journal Issue 62 by GreenEconomyMedia

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ISSUE 62 | 2024

Economy G

Africa

UNDERMINED NO MORE

HYBRID ENERGY PROJECTS

THE MOBILITY TRANSITION

THE BUILT NEXUS

ALL THE POWER

UNDER THE SUN

Part of the AutoX family, Rentech was established in 2001 as a dedicated provider of renewable energy products and services. With a focus on supplying local and selected African markets, our product range includes inverters, lithium batteries, lead-acid batteries, and PV panels of the highest quality. We also provide expert advice to assist customers in choosing the best product solutions appropriate for their specific applications and requirements. As well as being a preferred supplier to the Engineering, Procurement and Construction (EPC) market, Rentech is also an established market player in the retail sector, providing solar products to dedicated solar outlets, automotive parts retail stores and the unique Willard and SABAT Xpress battery specialist channel.

As communities the world over are forced to face the challenges surrounding a global energy crisis, we realise that the emergency has moved beyond an environmental issue, and has become a market related issue. While still vitally important, it is no longer only about the production and consumption of clean energy. Solar, wind and other options can produce the clean, natural energy we need and desire, but Mother Nature can wreak havoc with that production. Cloudy or windless days are not favourable to some of the technologies we need to embrace.

What is the solution? The integration of renewable and traditional energy technologies into an Energy Management System (EMS) resulting in our consumption of the most consistent, safe and stable supply of energy. More than just generating power, it is vital to have a continuous and stable energy supply.

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In order to achieve this we need to accept that the days of “on demand power supply” are fast coming to an end in South Africa. The solution to securing the supply of power to industry, stabilize the energy feed to commerce and satisfy the end user requirements, consumers need to have access to battery backup solutions.

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PUBLISHER’S NOTE Dear Reader, I feel a renewed sense of urgency among businesses to move forward on projects, and the mining sector is at the forefront. It could be viewed simply as a business community resigned to their “new” circumstances (read 2023 loadshedding disaster) and galvanised to press ahead with their strategies regardless. This is very positive from a green economy standpoint, and from an energy standpoint in particular as a meaningful percentage of investments which fall within this sub-set of the economy. Another positive development is the inclusion of energy storage-related capex within the definitions under S12 of the Tax Act, a source of consternation and in some cases delay on the part of those looking to invest in hybrid energy projects. Kudos to government should this development materialise. At the grid scale, South Africa is about to become a global leader in energy storage with two rounds of World Bank-funded Eskomprocured projects starting to reach Commercial Operation Date, RMIPPPP projects long stranded due to price shifts now closing, and the launch of the second round of the DMRE ESIPPPP having been released. Several GWhs of battery energy storage will soon come on stream, materially improving security and supply quality. We will be present at all leading sector events including the Mining Indaba, Solar Power Africa, Africa’s Green Economy Summit and the Africa Energy Indaba, to track and write about these developments, and we look forward to meeting with you and other leaders in the green economy!

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Economy G

journal

EDITOR: Alexis Knipe alexis@greeneconomy.media CO-PUBLISHERS: Gordon Brown gordon@greeneconomy.media Alexis Knipe alexis@greeneconomy.media Danielle Solomons danielle@greeneconomy.media LAYOUT AND DESIGN: OFFICE ADMINISTRATOR:

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EDITOR’S NOTE Hi All, Welcome to this issue of the Green Economy Journal. African countries have expressed their collective desire not to be locked into historical patterns of the international division of labour as producers and exporters of unprocessed minerals. Thus, the AU is engaged in the process of concluding an African Critical Minerals Strategy to promote more value-added and developmental benefits from the continent’s critical minerals. This transition will see pressure to phase down fossil fuel mining and extraction on the one hand and a dramatic increase in the range of critical minerals required for green and digital technologies (page 8). The elements of sustainability must be embedded into each mine’s core operations – depending on the type of mine, the mining phase as well as the geographic and social environment. A comprehensive, balanced approach to sustainability considers the company’s larger strategic focus and priority areas as well as the need to adapt quickly and locally as focus and priorities change over time (page 16). In the energy sector, developers are eager to deliver and have set aggressive targets for new capacity installment. However, a paradigm shift across market conditions, grid availability, land use, labour shortage and supply chain disruptions is putting these goals at risk. Achieving the next level of renewable penetration requires the next evolutionary step in project development: hybrid projects – combining multiple technologies in one site, such as wind and solar, or either one with battery storage (page 28). Read about these and other fascinating issues in edition 62 of the Green Economy Journal. See you at the events!

Alexis Knipe Editor

www.greeneconomy.media

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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CONTENTS 4

NEWS & SNIPPETS MINERALS

8 Making the most of Africa’s critical minerals in Just Transition

MINING

14 Getting the most from your social and labour plans 16 Building a sustainability framework 20 Vezinhlanhla Mining servicing the mining industry 22 Putting heads together to solve mining headaches

25 26

WATER

Re-Solve your water issues South Africa’s mining water update

ENERGY

28 Hybrid projects: a value engine for renewable energy developers 36 Getting the best return on your solar PV investment 39 Air Products celebrating the transition

MOBILITY

42 Rapid shift to renewable energy vital for EV transition 46 Masslift raises the bar

THOUGHT LEADERSHIP

The green economy/built environment nexus

Aquamation: an eco-friendly burial alternative

SOCIETY WASTE

56 Technology trends driving sustainable polymers for a circular economy

SKILLS

READ REPORT

59 Higher education institutions must take the sustainability lead in 2024

THOUGHT [ECO]NOMY

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To access the full report in our Thought [ECO]nomy report boxes: Click on the READ REPORT wording or image in the box and you will gain access to the original report. Turn to the page numbers (example below) for key takeouts of the report.

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NEWS & SNIPPETS

ROLLING BLACKOUTS WILL BE WITH SA FOR YEARS By Georgina Crouth

The latest Integrated Resource Plan (IRP), gazetted on 4 January by Minister Gwede Mantashe reveals that power supply will be constrained for the next six years due to an “electricity supply gap”, despite efforts to add new supply to the grid. Nuclear power, the plan acknowledges, is an important clean energy source of electricity generation because it can complement other clean energy technologies in reducing power sector emissions, while also contributing to electricity security as a dispatchable power source. “There is growing global interest in the deployment of small modular reactors (SMRs). Given their smaller footprint, SMRs can be sited in locations not suitable for larger nuclear power plants, such as inland regions, along the coast and in remote areas. “The flexibility of SMRs enables potential for hybrid energy systems that combine nuclear and alternative energy sources, including renewables. SMRs can be deployed incrementally… to match increasing nuclear demand.” Extending the life of the Koeberg nuclear power station beyond 2024 is critical to retaining 1 860MW of power, which is about 5% of Eskom’s total generation capacity. In November, Koeberg synchronised Unit 1 to the grid, which it described as “a huge milestone in the generation and operational recovery plan”, although Minister Ramokgopa has called outages at six other power stations a “major disappointment”. The government expects more solar PV and wind to be added by the private sector after 2027, which is not included in the “emerging” plan. The IRP 2023 is up in the air about the energy mix after 2030, saying the system will require a massive new build programme as significant capacity will be required in just over a decade from now. It says other than delayed shutdown, these technologies include a mix of nuclear, renewables, clean coal and gas, in support of coal reduction commitments. Daily Maverick

SA TO BENEFIT FROM FUND FOR CLEAN ENERGY TRANSITION

By Siphelele Dludla

South Africa could get a cash injection to deal with its crippling energy crisis, with the country set to be one of the beneficiaries of an initiative by global leaders to raise trillions of dollars to At the World Economic Forum (WEF) 2024 Annual Meetings in Davos in January, more than 20 ministers and CEOs joined an alliance to unlock the funding needed for the Global South’s clean energy transition. The “Network to Mobilise Clean Energy Investment for the Global South” is made up of CEOs and government ministers, including from Colombia, Egypt, India, Japan, Malaysia, Morocco, Namibia, Nigeria, Norway, Kenya and South Africa. Head of the WEF’s Centre for Energy and Materials, Roberto Bocca, said accelerating the clean energy transition was imperative to address climate emergency, but current investment levels remained far below the scale. “Unlocking this financing today is not only a key first step towards a secure and equitable energy system tomorrow, but represents a clear opportunity for businesses, as emerging economies account for the lion’s share of the global population,” Bocca said. This comes as energy supply shortage was identified as one of the top five risks facing South Africa by the latest Executive Opinion Survey (EOS) of the WEF. The Global Risks Report 2024 also named economic downturn, unemployment, state fragility and water-supply shortages as challenges as the most likely to pose the biggest threat to South Africa in the next two years. The long-standing energy deficit in South Africa has forced Eskom to implement up to 10 hours a day of rotational power cuts, which has crippled business and economic activity as the stateowned electricity utility doesn’t have the balance sheet to fund new generation projects. The WEF also released a report that outlined a framework to guide policymakers and business leaders from the energy sector towards a just, equitable and inclusive energy transition, particularly in developing economies which account for less than one-fifth of global clean energy investments. Business Report

Egypt’s Minister of International Co-operation, Rania A Al-Mashat, who will co-chair the network that will oversee this, said the overall annual investment in clean energy in the Global South needed to triple from $770-billion (R14.6-trillion) currently to $2.2-trillion to $2.8-trillion by the early 2030s. Al-Mashat said that while recent spending had increased, it remained concentrated in a few countries and sectors, with over 90% of investment growth having occurred in advanced economies and China since 2021. “The network will play a crucial role in bringing together public and private players to pinpoint investment needs, breaking down barriers, and unlocking practical solutions for a just, equitable and sustainable energy transition in the Global South,” Al-Mashat said. “This will be a new space for emerging economies to exchange best practices and lessons learned, and foster collaboration around value chain strategies, regulatory policies and investment mechanisms.” Minister of Electricity, Dr Ramokgopa, prior to the WEF, said they were working on presenting a compelling case to attract foreign investors to plough money into expanding South Africa’s electricity transmission network in a bid to deal with the energy crisis. South Africa needs about R390-billion to aggressively expand and strengthen its transmission grid with about 14 000km of new power lines to accommodate renewable energy that is coming online. Standard Bank Group CEO Sim Tshabalala, in an interview with CNBC Africa on the sidelines of the WEF meetings, pleaded with leaders in South Africa and across the continent to make it easier to do business in their countries by reducing red tape and liberalising their economies. He also urged African countries to reduce the risk premium associated with investing on the continent by making it easier for goods, people and ideas to flow across the continent, implementing fiscal discipline and making it easier to do business. The WEF gathering took place against a backdrop of increased geopolitical tension, especially in the Middle East, and in a record election year with more people than ever being able to head to the polls in 2024.

NEWS & SNIPPETS

SCARCITY OF FUNDING IN THE MINING INDUSTRY

By Rashaad Carrim and Shirleen Ritchie, partners at Webber Wentzel

Understanding the role of mining companies in the global economy is crucial in navigating the many legal and economic hurdles to ensure that these companies continue to operate responsibly, sustainably and profitably. Accordingly, this sector operates in a complex legal landscape, characterised by evolving and increasingly stringent regulations, environmental considerations and community concerns while at the same time having to navigate the ever-present need and often scarcity of funding. ALTERNATIVE FUNDING OPTIONS Investors and third-party funders, such as banks and investment funds, are increasingly facing pressure to disinvest from the mining industry in favour of “greener” investment options. This is specifically present in those mining sectors that are perceived as being inescapably linked to fossil fuels (coal companies and the like). While there is still a diminishing bucket of investors who continue to invest in these entities, the equity and debt capital markets have insufficient will or depth to sustain the capital expenditure necessary to progress mining operations generally and for “out of favour” commodities. Furthermore, banks and funding institutions are similarly limiting their exposure to mining operations to such an extent that the leveraging options available to mining companies are presently few and far between. Newer (and in some cases revived) financing options have started emerging as viable sources, such as royalty arrangements and streaming together with blockchain and crowdfunding (particularly for smaller mining companies or projects with a strong social impact narrative). These innovative financing mechanisms offer greater access, flexibility and benefits to mining companies, including balance sheet optimisation, which in turn increases the ability to provide investors with real and meaningful returns using dividends. Royalty and streaming arrangements offer many unique advantages to mining companies. Streaming and royalty agreements are contracts concluded between the streamer (purchaser) and the mining

company (seller) and can be efficiently implemented within a short space of time, as these arrangements usually do not require complex engagements with equity capital markets and shareholders. It also often allows mining companies to optimise the sale of non-core or secondary commodities using more competitive pricing. However, the allure of these avenues should be Shirleen Ritchie. balanced with an acute understanding of the regulatory, exchange control and tax implications as well as the overall cost of funding for the mining companies. In addition, many tax jurisdictions will tax the receipt of funds earned at corporate income tax rates, which would make royalty and streaming arrangements prohibitively expensive. Coupled with income tax are the often-present value-added taxes that need to be considered. South African tax laws, for example, would tax the receipt at corporate Rashaad Carrim. income tax rates but the application of certain smoothing provisions that allow the profit associated with streaming agree-ments to be recognised over the term of the agreement do offer solutions that make this viable. To this end, although commercial expediency and ease of implementation may be the first attraction, it is critically important to consider the legal and tax landscape of the mining company early in the negotiations or this will not yield the desired results. In this ever-changing world, the mining industry will continue to be tested, however, tapping into the power of these previously underutilised and novel sources of funding together with the guidance of strategic and experienced advisors is fast becoming a necessity for large, mid-tier and junior mining houses alike, to demonstrate to their stakeholders their continued ability to secure the ever-present need for capital and resilience in general.

REACTION TO DRAFT IRP 2023 The draft IRP 2023 makes the case for a fossil-heavy electricity generation system on the basis of undisclosed and unsupported assumptions that are not replicable. It also does not consider the uncompetitive future to which this poorly drafted plan would bind the South African economy. “This is not only a step back for the Department of Mineral Resources and Energy (DMRE) in terms of consultation and clarity of work, it is a high-risk pitch for special interests at the cost of the citizens’ futures. We can and must do better,” says James Reeler, senior manager for Climate Action with WWF South Africa. Reeler describes the draft IRP as “not only disappointing, but it also seems to fly in the face of all other electricity generation models, both national and internationally”. “It would appear that the IRP’s conclusions are driven by a foregone conclusion that fossil gas and coal are necessary, with modelling constraints for different pathways constructed to support this. The result is a vision that proposes to increase greenhouse gas emissions and the concomitant health impacts of our energy system, at massive cost to human health and wellbeing,” he says. The IRP’s cost assumptions differ significantly from what has been seen in the real world, where renewable energy (RE) is now the cheapest form of energy that has ever been available. Moreover, the unwarranted assertion that large scale renewable

builds will necessarily result in large amounts of unserved energy is driven more by artificial constraints placed on the model than real feasibility assessment. The IRP’s near-term reliance on fossil gas to make up a shortfall in generation should not be construed to mean that exploitation of gas reserves is a viable option for the long term. The Intergovernmental Panel on Climate Change (IPCC) and International Energy Agency (IEA) are clear that to meet the global goal of limiting climate change to near 1.5°C the world cannot afford to make use of any additional fossil fuels. In addition, a legitimate economic assessment of the impacts of a high emissions pathway should also consider the additional effects of being unable to export products to key markets, as well as the additional climate and human health impacts. Delaying the shutdown of coal plants will violate any chance of South Africa meeting its international mitigation commitments; the low likelihood and very high cost of carbon capture and storage mean it is not a reasonable fix for continued operation of coal plants. Overall, WWF is extremely concerned that Cabinet has approved this document in its current state for public consultation and calls for better transparency and rigour in the development of such critical planning documents. It strongly urges that DMRE makes their assumptions and model workings clear, to enable proper assessment of their conclusions.

NEWS & SNIPPETS

THE TRIPLE THREAT TO AFRICAN MINING INVESTMENTS Water availability is a key investment risk to mining in many African countries. According to Peter Shepherd, partner and principal hydrologist at SRK Consulting, water allocation demands early attention and a commitment to meeting stringent compliance and best practice requirements. Shepherd highlighted that national regulations are often onerous, and any project’s motivation for a water use licence needs to be both detailed and scientifically sustainable. “Many parts of Africa are dry, and competition for water grows steadily with development and human migration, as well as climate change,” he said. “In southern Africa, for instance, countries like South Africa, Namibia and Botswana are increasingly careful about how water supply is allocated.”

Resilience Rainfall patterns are changing; even where the annual rainfall remains similar, there are more exaggerated peaks and troughs – heavy downpours followed by long periods of little rain, for instance. Mines have always needed to manage water levels through and between rainy seasons, but it is becoming more challenging. Return water dams and settlement ponds need to retain as much water as possible for the dry periods, while still having capacity to absorb extra water during the rainy season. Variations to historical rainfall patterns means that extra capacity is needing to be designed into this infrastructure.

Feasibility too late Any new mine development therefore needs to establish at a very early stage that there are in fact water resources available – and to investigate the terms for access to such resources. This is no longer an issue that can wait until the pre-feasibility or feasibility stages of a project, he emphasised. Desalination A government decision in Namibia has meant that new mines will use desalinated water, for example, which is often piped many kilometres to the mine site where it is used. Steps like these are important for managing national water resources but do have a cost impact on mine development projects. These costs must be budgeted for well in advance. “Even where there may be groundwater in the vicinity of a project in a low-rainfall region – such as 50 to 100 metres under a riverbed – the developers may be instructed by water authorities to source water from other sources further away,” said Shepherd. Settling times The actual water demand for each project also needs to be carefully analysed, with due regard to the different types of mines. Processing of certain minerals is more water-intensive than others, but there may be high silt or clay levels that raise water ratios and settling times. “Recycling of water is always important, and this process usually includes the settling out of suspended solids before water can be re-used,” he said. “Longer settling times need to be taken into account in designing the necessary infrastructure.” He notes that many mines struggle with the silting up of water storage facilities over time; the lining of pollution control dams with geo-membranes in recent decades makes it risky to dig out silt using mechanical equipment. This has resulted in greater efforts to restrict the inflow of silt at source, through features such as silt traps – from which the sediment can be more easily removed.

African mines face water scarcity, changing rainfall patterns and strict regulations, making water management vital for sustainable investment.

Water quality “Mining with less water also requires better containment strategies for water of poor quality,” he said. “Recycling and re-use inevitably concentrates the level of salts and metals, and mines then need to isolate this water so that it can be either chemically treated or removed from site altogether as a hazardous liquid.” Shepherd emphasised that a mine’s water management strategy is increasingly part of its social licence to mine, as any use of this scarce resource must be seen to be equitable. Engagement with local authorities and communities is crucial in this respect, allowing new water infrastructure to be developed collaboratively. Especially where water is being transported long distances to the mine, additional distribution networks to local communities can be planned and implemented.

SA’S R1.5-TRILLION TRANSITION PLAN DFFE Minister launched South Africa’s Just Energy Transition Investment Plan (JET IP) for the period 2023 to 2027 at COP28 late last year. The plan charts the path South Africa will follow to achieve low-carbon but resilient economic growth, which demands a transition from fossil fuels, such as coal, largely mined in Mpumalanga, to fuel Eskom’s power stations. The JET IP is premised on South Africa’s National Development Plan 2030. It focuses on tackling the country’s systemic challenges of poverty, inequality and unemployment. It also sees an opportunity for the country to drive green industrial development, innovation and economic diversification. The governments of France, Germany, the UK, the US and the EU collectively known as the International Partners Group (IPG), have contributed R128-billion (US$8.5-billion) to the overall R1.5-trillion presented in this JET IP. South Africa has committed to reducing its emissions to within a range of 420-350 megatons of carbon dioxide equivalent (MtCO2-eq) by 2030. According to the JET IP, the priority sectors identified for investment include electricity, new EVs and green hydrogen. In the next five years, R711.4-billion will be needed in the electricity sector, R128.1-billion for EVs, green hydrogen (R319-billion), skills development (R2.7-billion) and municipal capacity (R319.1-billion). The report warns that South Africa faces an economic risk because of the degree of carbon emission embedded in its commodities and products.

NEWS & SNIPPETS

UNTAPPED GREEN INVESTMENT OPPORTUNITIES IN AFRICA KPMG recently released a report detailing nearly $250-billion untapped green investment opportunities in areas such as solar, wind and hydrogen. As it stands, Africa will need $277-billion annually between 2020 and 2030 to reach its Paris Agreement targets and implement its Nationally Determined Contributions, to contribute to limiting global warming to 1.5°C, according to the Climate Policy Initiative. It currently only receives $29.5-billion in annual climate finance, revealing the significant inflows of both public and private finances required from domestic and international sources. The report Climate Investing in Africa reveals that, as Africa fast approaches an anticipated period of economic prosperity, and as a home to mineral and resource rich land, there is an obvious yet untapped investment opportunity for private sector financiers. Despite its abundant renewable energy resources and vast non-arable land, Africa currently receives only 3% of global renewable energy investment, a stark contrast to the continent hosting 20% of the world’s population. The whitepaper details why private sector investment will therefore be vital to close the electricity gap in Africa and help decarbonise industries and economies, to support the region in a just transition. Other key findings include: • Unlocking Africa’s wind potential. If Africa were to exploit all of its wind resources for renewable energy generation, it could easily bridge the current energy provision gap on the continent. There is ample opportunity for greater investment and impactful infrastructure, with the International Finance Corporation estimating that Africa’s wind potential is so substantial that it could meet electricity demand 250 times over. • Underinvestment in solar. Underinvestment has resulted in inadequate infrastructure and high costs in the solar sector. Africa’s current solar potential is estimated to be over 1 000 times the current solar power electricity generation capacity, yet it has only been systematically deployed in a handful of countries. • The power of green hydrogen. Should existing commitments to reduce emissions be met by governments globally, it is projected that demand for green hydrogen projects will increase dramatically. Africa’s possession of copious renewable energy resources and vast arable land positions the continent uniquely well to produce green hydrogen and catalyse the broader process of industrialisation on the continent.

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MINERALS

Making the most of

AFRICA’S CRITICAL MINERALS

in just transition

African countries need to strategise about how to position themselves to make the most of their natural endowments of several minerals that are critical to the ongoing green and digital transition underway in the global economy. BY NIMROD ZALK*

ountries that have achieved high levels and rapid gains in levels of income have done so by transforming their economic structure from low-productivity agriculture and petty services to agricultural modernisation and manufacturing. However, the fossil fuel-based energy powering this transition has generated greenhouse gas emissions that are driving potentially catastrophic climate change. High-income North Atlantic economies are responsible for the bulk of the stock of CO2 and other greenhouse gas emissions in the atmosphere, followed by late industrialising powerhouses China and India. While Africa has contributed the least to CO2 emissions, around 4%, it is projected to suffer the most adversely from the impact of climate change particularly through rising temperatures and increasing frequency of extreme weather events such as droughts and floods. China is the leading processer of a range of critical minerals including rare earths, cobalt, lithium, copper and nickel. This is partly due to the significant and growing presence of Chinese mines on the continent but even more because of the industrial capacity built up in China to process critical minerals into industrial-grade concentrates and in turn into green and digital products. These include electric vehicles (EVs) and EV batteries, solar photovoltaic panels and wind turbines, semiconductors and digital devices. A combination of economic and geopolitical factors is driving dramatic structural change in the global economy. At the forefront is the shift to various low-carbon energy and transport technologies and the digitalisation of production and consumption. This transition is driven by a combination of factors. First, the necessary response to climate change. Second, the EU’s push for greater energy security in the wake of Russia’s invasion of Ukraine.

Third is the belated recognition and desire to catch up by the US and EU with the technological and industrial lead established by China in green and digital technologies. This is reflected by the introduction of large-scale subsidy, trade and regulatory measures notably the US’s Inflation Reduction Act (IRA) and the EU’s Green Deal Industrial Plan. In this context, the US and EU’s push for greater control over green and digital supply chains has unleashed a “race” to secure the supply of various critical minerals and associated strategies including the US’s Critical Minerals and Materials and the EU’s European Critical Raw Materials Act.

AFRICA’S AUTONOMY

Not surprisingly, African countries have expressed their collective desire not to be locked into historical patterns of the international division of labour as producers and exporters of unprocessed minerals. Thus, the AU is engaged in the process of concluding an African Critical Minerals Strategy to promote more value-added and developmental benefits from the continent’s critical minerals. This transition will see pressure to phase down fossil fuel mining and extraction on the one hand and a dramatic increase in the range of critical minerals required for green and digital technologies. The battery minerals required for EVs and energy storage include lithium, nickel, cobalt, manganese and graphite; rare earth metals and elements; as well as copper and aluminium required for electricity transmission and in EVs. Electric vehicles require over 200kg of minerals compared to less than 50kg for internal combustion (ICE) vehicles. Wind and solar photovoltaic technologies are also much more mineral-intensive than nuclear, coal and gas. Demand for battery-related and renewables and electricity

Article courtesy Daily Maverick

MINERALS

transmission-related minerals will increase by orders of magnitude. For instance, by 2040 lithium demand is projected to increase by between 13 and 42 times current levels, cobalt by six to 21 times and copper by between 1.7 and 2.7 times. Several African countries have substantial endowments of critical minerals and Africa has significant proven reserves of several critical battery minerals, including: • Platinum Group Metals (PGMs): 92% (90% of which are in South Africa and 2% in Zimbabwe) • Cobalt: 53% (51% of which are in DR Congo followed by Madagascar, Morocco and South Africa) • Manganese: 45% (40% of which are in South Africa, followed by Gabon and Ghana) • Chromite: 35% • Bauxite: 25% • Graphite: 21% (Madagascar: 8.1%, Mozambique: 7.8% and Tanzania: 5.3%) • Vanadium: 16% accounted for by South Africa • Copper: 6% (Zambia and DR Congo)

Aluminium.

Graphite.

These proven reserves are likely to be an underestimate due to low levels of mining exploration activity. However, limited processing of critical minerals to refined or concentrated stage takes place on the continent, with the notable exception of PGMs and manganese in South Africa. Aluminium is produced in South Africa and Mozambique from imported bauxite. However, there are pockets of existing and emerging critical mineralrelated activity. South Africa has significant capabilities related to the interface of hydrogen and platinum. This includes fuel cell pilot projects and a nascent green hydrogen strategy. Lithium-ion batteries are also assembled in South Africa, from imported cells. In Southern Africa, South Africa could well position itself as a leading processor of critical minerals mined in the sub-region, building on historical capabilities developed around its mining industry. In North Africa, Morocco is emerging as a significant player in critical minerals as mounting barriers to Chinese exports and investment in the US and EU loom. Morocco has taken advantage of its free trade agreements with both the US and EU, as well as its proximity

Nickel.

South Africa could well position itself as a leading processor of critical minerals. Copper.

Cobalt.

MINERALS to the EU. China’s CNGR has announced a $2-billion investment with Moroccan conglomerate Al Mada in a cathode materials plant to supply both the US and EU battery markets. South Korea’s LG Chem and China’s Huayou have announced plans to build a lithium refinery and cathode materials plant in Morocco.

POLICY OPTIONS

What policy options should African countries consider to capture more of the gains from their critical minerals endowments? One way African countries can give expression to their insistence that value should be added to the continent is to leverage their long history of non-alignment that emerged over the Cold War period. This implies a foreign policy orientation that does not reflexively support one or other dominant economic and geo-political power but aims to secure the most developmental benefits from whomever a country engages with based on “strategic non-alignment”. Morocco is navigating the US/EU and Chinese geopolitics adeptly. Mining policy can be strengthened on several fronts.

African development banks have an important role to play.

Greater public support for geological data collection is needed. So too is encouragement of exploration for the “smart” minerals needed for the green and digital transitions. Strengthened capabilities are needed to identify feasible yet ambitious conditions for value-addition and the negotiation and contracting related to these conditions. A spectrum of conditions is possible. At one end, countries can place restrictions on exports of unprocessed minerals. It is critical, however, to recognise that control of minerals themselves is not a sufficient condition for the development of downstream industries and needs to be accompanied by measures to foster industrial capabilities, with the level of capabilities needed rising further down the value chain. Holding lithium deposits for instance is by no means sufficient to ensure the investments and capabilities necessary to produce batteries for EVs. One “softer” approach is to “test the market” through the introduction of “developmental auctions” for mining rights. Rather than aiming to secure the highest price, issuance of a mining right would be granted to the bidder that provides the most substantial developmental package in terms of value-addition and labour, social and environmental commitments. Industrial, innovation and skills policies are required to support the development of capabilities required by both foreign and domestic firms. African development banks have an important role to play, not only in providing finance but in supporting de-risking of emerging sectors and value chains linked to critical minerals and informing government policy. While several African countries are experiencing debt distress, well-designed fiscal policy can also contribute. For instance, tax incentives supporting entirely new economic activities will have no adverse impact on existing budget deficits and if, and when, they become profitable will increasingly contribute to the tax base. African countries have much to gain by strategically navigating the geopolitical and economic “race” for critical minerals. This requires the development of strategies that are rigorous, ambitious yet realistic. Significant learnings can be derived from the strategies adopted by other developing countries. This includes not only Asian countries such as Indonesia but also African ones like Morocco.

Keliber lithium project.

Rustenburg Sibanye Gold.

*Dr Nimrod Zalk is chief research officer: climate and economic development at the University of Cape Town’s Nelson Mandela School of Public Governance.

MINERALS THOUGHT [ECO]NOMY

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The state of play

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THE ROLE OF CRITICAL MINERALS IN CLEAN ENERGY TRANSITIONS | World Energy Outlook Special Report | International Energy Agency | [March 2022] A concerted effort to reach the goals of the Paris Agreement would mean a quadrupling of mineral requirements for clean energy technologies by 2040. An even faster transition, to hit net-zero globally by 2050, would require six times more mineral inputs in 2040 than today. Which sectors do these increases come from? Wind takes the lead, bolstered by material-intensive offshore wind. Solar PV follows closely, due to the sheer volume of capacity that is added. Hydropower, biomass and nuclear make only minor contributions given their comparatively low mineral requirements. In other sectors, the rapid growth of hydrogen as an energy carrier underpins major growth in demand for nickel and zirconium for electrolysers and platinum-group metals for fuel cells. Demand trajectories are subject to large technology and policy uncertainties. The largest source of demand variability comes from uncertainty around the stringency of climate policies. The big question for suppliers is whether the world is heading for a scenario consistent with the Paris Agreement. Policymakers have a crucial role in narrowing this uncertainty by making clear their ambitions and turning targets into actions. This will be vital to reduce investment risks and ensure adequate flow of capital to new projects.

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Reliable supply of minerals

175

Focus on recycling

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Mineral development and climate change

GEOPOLITICS OF CRITICAL MINERALS IN RENEWABLE ENERGY SUPPLY CHAINS | The African Climate Foundation | [2022] In this policy brief, the African Climate Foundation has stressed how three main factors will determine the potential developmental outcomes of critical minerals industry development in Africa. Governments across Africa must recognise the strategic value of these critical minerals for domestic and regional industrialisation, but also the fact that transnational companies and industrialised countries are exercising their geopolitical influence and power to control critical minerals. The exploitation of these critical minerals, in both upstream and downstream industries, are scale- and capital-intensive investments requiring significant organisational and technological capabilities. Without developing some of these capabilities, the value from critical minerals will remain captured by major international players.

APPROACH PAPER TOWARDS PREPARATION OF AN AFRICAN GREEN MINERALS STRATEGY | African Development Bank Group | African Natural Resources Management and Investment Centre | [December 2022] To formulate a strategy that is grounded in the prevailing circumstances of African countries and informed by local, regional and global conditions, this approach paper has been prepared by the African Development Bank and its partners [the African Minerals Development Centre, the African Legal Support Facility, the UN Economic Commission for Africa and the UN Development Programme] as a precursor study for a fully-fledged African Green Mineral Strategy (AGMS) which will follow. The strategy is intended to augment the existing body of mineral development policies with a focus on the opportunities created by African green minerals. The vision for the strategy is to guide Africa to purposefully exploit the continent’s green mineral resources for industrialisation and to assert control over its destiny to create an African presence in emerging green technologies. Four pillars support the strategy to deliver this vision: 1. Advancing mineral development by increasing geological knowledge, conducting feasibility studies to attract investment, establishing the infrastructure to create an enabling environment and aligning mineral resource management with the African Mining Vision. 2. Developing people and technology capabilities by identifying the skills needed to capitalise on opportunities and building the institutions ready to generate them. 3. Building key value chains to achieve resource-based industrialisation and access wider regional and continental markets through the African Continental Free Trade Area. The case is made for establishing battery and EV value chains as a priority, starting with two- and three-wheeled vehicles. 4. Promoting mineral stewardship to responsibly guide the environmental, social and governance aspects of green minerals, together with increasing material reuse and recycling.

MINERALS

Mining is critical to our

GREENER FUTURE Extract of speaking notes for Nolitha Fakude, president of Minerals Council South Africa, at the African Critical Minerals Summit in August 2023.

“W

e must heed the lessons of the past and not be just a supplier of raw minerals. Through strategic partnerships and investments, we must leverage our minerals endowment to attract new industries and businesses into the continent, creating jobs, encouraging skilled employment, the creation of wealth and a better life for all our citizens. Africa has any number of industrial minerals that must be used to improve our infrastructure such as rail, roads, ports, water reticulation and electricity transmission. These infrastructural requirements not only create a local market for our minerals, but they’ll underpin our economic growth. Productive agriculture through the smart use of fertilisers made with the phosphates we have is another example of the important minerals we have, and which will be critical for our future. South Africa is rich in platinum group metals which are essential in the establishment of a green hydrogen economy. Work has started in the Minerals Council and in the Energy Council with their member companies to determine the role the mining industry can play in the green hydrogen economy and how it can best use the clean source of energy to decarbonise its operations. Research, development and innovation into new technologies and the best use of our mineral endowment must be encouraged. This needs partnerships between the government, academia and the private sector to pool our intellectual capital through incentives, subsidies and support. We cannot afford to be left behind or start late in the global race for a greener future or smarter uses of our minerals.

We must heed the lessons of the past. The decline in South Africa’s share of global exploration spending is dramatic, falling to less than 1%, as can be seen in the past three years, from more than 5% in 2004. This is extremely worrying for the mining industry, its future, the jobs we have, the communities that could benefit and the fiscus. Every ounce or ton taken out of the ground must be replaced through exploration otherwise the industry will eventually cease. South Africa must not be left behind. Unlocking exploration is a game changer. We must address some of the underlying causes for the decline in exploration. Of importance is that we have a functional, transparent, off-the-shelf cadastral system that is loaded with geological maps and reduces human intervention and corruption to a minimum. South Africa is lagging the world in the digital management of its minerals, and we must have a proven system as soon as possible. Secondly, the backlog of more than 5 000 mining, prospecting and permit applications in the DMRE has been a long-standing blockage to investments in exploration and mining project developments. Investors making long-term decisions about where to put their money demand a stable, predictable regulatory environment with the minimum of red tape and bureaucratic delays. We note the

DMRE has started a review of the Mineral and Petroleum Resources Development Act to amend the Act. The Minerals Council will interact closely with the regulator to ensure South Africa has the best possible regulations that will attract investment, stimulate job creation and encourage inclusive, sustainable economic growth in the sector. The Minerals Council and the DMRE are working together on tax incentive proposals for National Treasury to consider implementing to encourage investment in exploration. The Minerals Council through Business for South Africa is working closely with organised business in the three partnerships with the Presidency and various ministries to address logistics, energy and crime and corruption. Business sees these three issues as the key issues that are constraining the economy and contributing to negative perceptions about South Africa as an investment destination. While it is still early in the process, we are encouraged by the response from the government to the partnerships. Business is willing to play its part as a partner, with its resources and skills, to address these three areas along with the relevant ministries and state-owned entities. We have seen significant structural reforms in the energy sector so far, with the private sector playing an important role in the development and installation of renewable energy sources. Private sector participation in rail and ports will unlock the bottlenecks that are costing the economy billions of rands in lost exports and imports. The private sector stands ready to engage the government on its critical minerals strategy, with investor-friendly policies and decisions around the definition of critical minerals and understanding the market forces driving current and future demand for these minerals. Further, South Africa must leverage its partnerships with the rest of the African continent to identify synergies that will benefit every one of us. South Africa’s mineral deposits tend to lie inland and far from ports and industrial hubs. The need for efficient and productive railways cannot be understated when it comes to the movement of bulk minerals. It is cheaper and more environmentally friendly than road transport, which destroys the country’s roads and causes enormous disruptions to communities and other road users. Our ports serve both the Indian and Atlantic oceans, giving us access to markets in the east, west and north. The development of an electricity transmission network as well as investments in renewable energy sources, particularly in the remote parts of our country are equally as important.”

MINING

Getting the most from SOCIAL and

LABOUR PLANS

Darryll Kilian, SRK Consulting.

South African mining companies are spending substantial sums on their Social and Labour Plans. As a tool for improving the positive impacts of mining in South Africa, the plans developed and executed by mines have not produced optimal outcomes – but the industry is continually improving its approach and understanding. BY SRK CONSULTING

andated by the Mineral and Petroleum Resources Development Act, Social and Labour Plans (SLPs) aim to promote employment, advance community welfare, help transform the mining industry and contribute to developing the areas where mines operate. According to SRK Consulting partner and principal consultant, Darryll Kilian, one of the shortfalls is that communities often have limited input into SLP planning and implementation. “It is certainly the case that more consultation is required in the formulation and implementation of SLPs,” argues Kilian. “Such engagement can help to open up opportunities and consolidate buy-in for when projects are finally rolled out.” Effective engagement Recent research has shown that community feedback highlights how little involvement respondents have in the SLP planning process, with lack of public participation being a key opportunity for further optimisation in the mineral benefits system.

With little influence on the content of an SLP, mining communities often express reservations about whether SLP projects really target their needs, he says. Responding to this means applying various interventions which include more awareness raising and greater efforts to engage a wider audience. There is a concern that mines often consult with only a narrow range of local interests – such as traditional leaders and politically connected individuals. A detailed process of stakeholder mapping has proved to be valuable in establishing a strong starting point for community engagement and consultation. It is also important to maintain community involvement throughout the SLP life cycle. Integrated Development Plans It is accepted that SLPs should align with the local municipality’s Integrated Development Plan (IDP), to enhance the momentum of government efforts on the ground. At the same time, IDPs focus on a wider range of concerns than SLPs – such as attracting investors and building the local economy.

MINING

Communities often have limited input into SLP planning and implementation. “Some researchers have warned that, in taking municipal IDPs into account, mines should not limit themselves to consultation with the municipality – as a replacement for direct community engagement,” he says. “Communities often do not have meaningful influence over what goes into the IDP, and the IDP has to aggregate the full range of local interests – including local business and wellresourced segments of the community.” In contrast, SLPs are aimed specifically at developing poorer and marginalised segments of the community. Kilian highlights that the decline in basic service delivery by many municipalities is making this task more onerous. “The SLP is a condition of each operation’s mining right, so mines have tended to embark on their SLPs and related projects on their own – trying to make the best use of their own limited resources,” says Kilian. “Over time, it is becoming clearer that this approach is not optimal in delivering the positive impacts that stakeholders are looking for.” Services eroding “As infrastructure and services have often eroded in mining areas, a mine-by-mine response is becoming increasingly ineffective,” he explains. “Rather than focusing SLPs only on immediate mining communities, there is now a need for collaboration across wider mining regions.” Kilian notes that large mining companies for whom SRK has conducted or reviewed SLPs have already begun considering this broader level of planning and cooperation. The linking up is necessary not just between mines, but between mining companies and well-resourced partners like international development finance institutions and donors. “Where multiple mines can pool their ideas, strategies and resources, they can consider approaching development agencies to make more

significant investments in key infrastructure that may have a benefit over a much larger area,” he says. “While this widens the focus of each mine’s SLP, these larger interventions will still have a direct and positive impact on the mine’s local community.” Partnerships Mines would still dedicate their committed funds to local communities, says Kilian, but there was scope for mining companies to include partnerships with regional and international development agencies in their SLPs. For instance, if a large funder was wanting to work with government on upgrading wastewater treatment facilities across the country, mines could make a valuable contribution in their areas through their SLPs. This approach could also have the advantage of being more proactive and addressing root causes of social and economic challenges – rather than just their symptoms. Where failing water treatment plants could lead to disease, for example, added local resources may end up being diverted to health facilities. Scalable roll-out Kilian emphasises the importance of scalability in the roll-out of basic services and infrastructure – which is possible with larger investment but difficult for mines to achieve on their own. Partnerships are therefore increasingly vital in addressing the host of growing issues around mines, many arising from unemployment, poverty and lack of basic services. “Mines often feel overwhelmed by the myriad demands that are faced in local communities, all of which are worthy of response,” explains Kilian. “However, it is clear that – with the best will in the world – the resources of individual mines are not sufficient by themselves.” He points to the possibilities associated with collaboration around the water resources pumped to surface by many mines. By taking a water stewardship approach and working together with government, community and funding stakeholders, a group of mines in the same catchment area could develop exciting water projects at scale.

South African mining companies invest significantly in SLPs, seeking to enhance the positive impact of mining activities.

MINING

SUSTAINABILITY

Anglo American

Building a

framework

We are often asked if it is possible to create a sustainability agenda for each mine owned by a company. Our answer is yes, but only if the mining company simplifies its approach and communicates to staff and stakeholders about why and how to act. BY KEARNEY CONSULTING

he elements of sustainability must be embedded into each mine’s core operations – depending on the type of mine, the mining phase as well as the geographic and social environment. A comprehensive, balanced approach to sustainability considers the company’s larger strategic focus and priority areas as well as the need to adapt quickly and locally as focus and priorities change over time. There are three “must haves” in a sustainability framework: 1) it must be applied consistently across the organisation regardless of geography or mine type, 2) it must encompass the full array of activities for addressing sustainability issues, including timing, execution and governance, and 3) it must sustain and enhance the competitiveness of the mining company’s portfolio of operations. A well-designed sustainability framework not only improves

operational performance and creates more sustainable operations, it also has the potential to improve profitability. Creating the framework begins by identifying the anticipated impact achieved through sustainability (economic, social and environmental) and defining the what, when, how and who of sustainable mining (see figure 1). 1. What mining processes have the most significant environmental and social impact? Leading mining companies focus on the processes that are most important in terms of sustainability and most closely linked to operational performance. This helps focus activities and scarce resources. As with most undertakings, the first step is to conduct a baseline analysis of the mining process to gain a better understanding of the company’s current consumption and environmental impact.

Kearney Analysis

Anglo American

MINING

Sustainability must become a part of the day-to-day job.

Above: Berm monitoring at Kumba Iron Ore’s Kolomela mine.

Framework for sustainable mining

Main picture: Tamaga Lodge is one of three biodiversity conservation areas on the western side of Sishen mine. These areas were originally livestock farms and are being carefully restored to their natural state.

Celebrate and communicate the small quick wins.

Figure 1. The “what, who, when and how” of sustainability in mining.

A good analysis assesses existing regulations, operations, energy mix, social impact and sustainability practices. It is important to assess performance at all mining phases – exploration, operations, closure and post-closure – and within all subcategories (see figure 2). The grey shaded areas in figure 2 highlight where a mine’s impact is most significant. The subcategories are then adapted depending on the specific environmental circumstances of the area. Energy-related pollution is easy to assess using metering tools to gauge the local energy mix, but analysing a mine’s social impact is often more difficult as it relies on people filling out questionnaires, Exploration

Operations

Closure

Post-closure

Figure 2. The impact of processes and activities across mining operations.

which are based on subjective opinions. We recommend going a step further and using tools to determine areas most important for a region and individual mines. 2. When – at what phase in the mining process – do sustainability initiatives have the biggest impact on a mine’s life cycle? The earlier a strategy and game plan are defined; the more likely sustainability (linked to operational performance) will be successfully integrated into all aspects of planning and operations. In this way, a negative impact within a mining phase can be mitigated. For example, figure 3 illustrates an impact assessment on water, evaluating acidity, heavy metals, chemical processing, sedimentation and quantities at all four phases. Two potential mitigation points are highlighted in the operations phase and at post-closure. The most significant steps are taken when a mine is in the initial stages of design, when it is still possible to mitigate a potential negative impact before it happens, and when relatively simple measures can drive sustainable operations, improve operational opportunities and cut costs (see figure 4). Measures implemented at a later phase will be far more costly. 3. How does a mining company avoid a negative social or environmental impact? A select set of priority initiatives is available to identify and address negative social or environmental impacts across the various mining phases. We use the following hierarchy to assess a potential impact (see figure 5): • Avoid an unacceptable impact by considering a different project location, sitting, scale, layout, technology or phase or ultimately by cancelling development • Minimise a largely unacceptable impact by considering the same options used to avoid an impact

Kearney Analysis

MINING

Figure 3. Impact assessment on water.

• •

Rehabilitate an unavoidable impact or one that has already occurred by existing operations O ffset a remaining or unavoidable impact by considering compensation and investment options

A good mitigation strategy is both evolutionary, deploying time-tested, proven best practices (doing things differently) and revolutionary, bringing in “blue-sky thinking” to set new environmental and social standards. In some cases, this means a change in execution and planning. In other cases, investments are required to achieve a significant impact. Although there are no standard guidelines or initiatives that will work for all mines around the world, many global mining companies are improving performance by sharing more ideas, initiatives and activities across operating regions. 4. Who should be on the sustainability team, and what is the best way for team members to work together? All successful sustainability agendas have two things in common: they are products of a high-quality implementation within the

company, and they are run by a dedicated team of professionals. Everyone collaborates to create win-win situations. All team members have roles to play. Governments, communities and municipalities establish the rules of the game and balance requirements (such as operating licenses) against the company’s sustainability agenda and the financial impact. Companies help determine and shape these requirements to ensure they are neither onerous nor lead to inefficient ways of working. All members work together to stipulate requirements and wishes, which are then discussed jointly to achieve optimal outcomes. These discussions often lead to subsidising specific initiatives or technologies that create a sustainability impact or they may lead to additional skills and jobs. Also, companies can commit to specific programmes with other organisations, both local and regional, in priority areas that have an environmental or social impact. Governments and NGOs might come back in to connect the dots between companies to compel larger programmes with a larger impact. We are often asked how underperforming mines can raise their sustainability game. One way is to join forces with NGOs in social and environmental partnerships. NGOs provide expertise and credibility

Figure 4. Influence and impact by mining phase. 1Potential impact - measures can be taken to offset impact and reduce the “cumulative impact”.

MINING and often better connectivity to communities. They can help mines achieve a larger community impact Execute a sustainability programme Sustainability requires a structured, comprehensive and organisationwide effort. This is not the time to cut corners or struggle with decisions about sustainability initiatives versus other priorities. The urgency of operations catches up with firms that are interested in making a difference. When discussing sustainability with mining companies, we generally recommend the following guidelines to achieve an immediate impact and a longer-term growth advantage: 1. Own the initiative from the top down Ownership from the board level down must be the driving force behind any sustainability initiative. Mandate the programme and provide guidelines for dealing with trade-offs. Manage a sustainability programme the same way you manage other large change efforts and integrate it within the overall strategy and performance management of the company. It is important to report results using well-established and widely accepted reporting standards and to ensure that a wide stakeholder group is actively involved in the effort. 2. Organise for success by embedding, not imposing Embed a small team at the centre of the organisation to drive and consolidate all sustainability efforts. Create a framework and guidelines to track and prioritise across the project portfolio. Share updates often and identify experts who are linked to senior management. Connect sustainability team members to reporting and communications processes and involve them in significant developments and decision-making. Focus on weaving sustainability into the operations function. Embed activities at the mines throughout all levels of the organisation with clear roles and responsibilities. Sustainability must become a part of the day-to-day job, rather than a separate function that has no power to drive and implement changes. Discuss sustainability during meetings with key stakeholders. Build awareness and capabilities from the top down to workers on the shop floor. Empower supervisors to foster the desired culture and set the right examples. Clear communication with the operators in the mine is essential.

4. Aim before shooting Choose a starting point and define success from that point onward. Most sustainability programmes evolve, so it is important to define success early in terms of the focus and what steps to take. A good example is optimising energy performance by addressing both the bottom line and sustainability: • Instill transparency and a baseline of energy consumption and emissions across operations with a common definition, such as kilowatt hour per ton of rock for processing equipment • Integrate sustainability into the planning process to breathe energy into the life of mine planning and the new mine development process • Define roles and responsibilities, and document and measure the impact • Invest in new technologies with reduced energy intensity or better water- or air-cleaning functionalities for the same mine output; think in terms of highly efficient fans, battery chargers, and pumps (where payback typically occurs in less than one year) or ice plants, closed-loop pumping systems, and heat pumps (where payback takes longer) • Build capabilities throughout the organisation • Finally, it’s time to shoot: drive the reductions through thoughtful, meticulous execution 5. Create a flywheel effect Like any transformation effort, celebrate and communicate the small quick wins to create a sense of achievement that propels the organisation toward larger successes. Sustainability belongs at the heart of mining operations All sustainable mines have certain success factors in common. A welldesigned framework ensures that the elements of sustainability are addressed and that solutions are embedded into mining operations. There should be no difference between operating a mine for efficiency and operating for sustainability. We believe that mining will grow into a more sustainable industry – operating in a community’s best interest while minimising the impact on the environment.

Kearney Analysis

3. Measure and “incentivise” Define a sustainability key performance indicator (KPI) tree with cascading SMART KPIs linked to operations. The tree addresses the framework categories and uses clear definitions to make sense at all levels of the organisation and across businesses. Think outside

the box by, for example, deploying tools such as community surveys and defining incentive structures that tie sustainability KPIs to other areas such as profitability, output and other financial goals to make them relevant. Tying 10% of total incentives to sustainability does not keep sustainability top of mind. It is far better to monitor and measure sustainability-driven operational KPIs structurally based on defined intervals and clear ways of measuring.

Figure 5. Mitigation of environmental impact.

MINING

SERVICING the MINING INDUSTRY Vezinhlanhla Mining strives to be a leading black-owned, diversified mining company in Africa while ensuring participation in the discovery, exploration and beneficiation of Africa’s mineral resources. Green Economy Journal speaks to the founder, Prince Vusi. Please tell us about Vezinhlanhla Mining. Vezinhlanhla Mining is a 100% black-owned mining contractor which combines top-notch experience with the versatility and innovation required by the mining industry to be sustainable in the long term. Vezinhlanhla is an empowered turnkey contractor with capabilities across the underground and opencast contract-mining value chain. What is the company’s history? As a Vusimuzi Group subsidiary, I established Vezinhlanhla Mining in 2017 to focus exclusively on the mining industry. Initially there was not much difficulty in establishing and growing the company, although we did have some challenges in 2022, but we showed immense resilience during the rebuilding phase. What is your vision? In 2024, our vision is to dominate the industry with my team and reinforce our position in the market, not only as a 100% black-owned mining contractor, but also as a reliable and competitive independent producer, starting with those 0.1% holding stakes.

If it’s not in mining, it’s not for us. Please supply an overview of your offerings. Vezinhlanhla is a mining contractor with capabilities across the underground and opencast contract-mining value chain. We offer the following: • Underground and opencast mining • Project and facilities management • Plant and conveyor maintenance • Crushing and screening • Engineering and drilling • Bulk material transportation and hauling We provide extensive services for coal, gold and platinum group metals (PGMs) producers. Vezinhlanhla Mining was established with the sole purpose of servicing the mining industry – if it’s not in mining, it’s not for us.

What is your view on sustainability? Vezinhlanhla Mining takes this responsibility seriously by embedding sustainable practices and environmental, social and governance (ESG) principles into every project by using cutting-edge technology, conducting thorough environmental assessments and adopting eco-friendly materials and execution methods.

MINING

RECLAIMING the RESOURCES Vezinhlanhla Mining, a 100% wholly black-owned mining contractor established by Prince Vusi, combines leading experience with the versatility and innovation required by mining to be sustainable for the long term.

stablished in 2017 as a mining contractor to service the mining industry, Vezinhlanhla is an empowered turnkey contractor with capabilities across the underground and opencast contract mining value chain. We provide extensive services for coal, gold, iron ore, manganese ore, chrome ore, nickel and platinum group metals (PGMs) producers. Vezinhlanhla undertakes mining operations with miners, roadheaders as well as drill and blast applications, enabling our clients to outsource according to their unique needs. Our commitment to safety, health, quality and environmental management standards means we work towards continuous improvements in risk management to better deliver project excellence. Our black empowerment credentials ensure that our clients benefit fully in terms of the mining charter requirement and the contractual conditions of key minerals purchasers.

OUR COMMITMENT

• A 100% wholly black-owned mining contractor • Capabilities across the underground and opencast contractmining value chain • Solely focused on the mining industry • Viable partnerships and relations with our clients

OUR MISSION

To be a leading black-owned South African company that delivers value to all its stakeholders by: • understanding the needs of our stakeholders • delivering on and exceeding those needs • attracting and retaining the best talent • focusing on core assets: Pareto Principle • focusing on owning and operating our assets • embracing diversity • ensuring sustainability, growth and good governance

The empowerment of women, youth and disabled persons should be achieved in all aspects of work. Vezinhlanhla has more women on board to strengthen the capacity of the business. The company will also employ youth to pass on the skills to the next generation as Vezinhlanhla grows. Bursary schemes will be introduced for students to further their studies. Vezinhlanhla has developed a culture where there is no discrimination against disabled persons, hence it will seek to find, train and employ disabled persons with potential and enthusiasm.

THE FUTURE

OUR COMMUNITY DEVELOPMENT PLAN

VEZINHLANHLA SERVICES

Our objective is to train our staff and community. Undergraduates from universities and colleges studying engineering, safety or mining will be given the opportunity to further their studies in the field at Vezinhlanhla Mining.

OUR BLACK EMPOWERMENT POLICY

Vezinhlanhla is committed to the broad-based black economic empowerment, and it supports the government’s initiative of transformation and affirmative action policies and will continue to implement such projects where possible. Vezinhlanhla has initiated projects whereby materials and equipment are sourced from black SMME companies thus to empower one of our own. Vezinhlanhla Mining strives to be a leading black-owned, diversified mining contractor in Africa while ensuring participation in the discovery, exploration and beneficiation of Africa’s mineral resources. Our mission is to develop and consolidate a diverse portfolio of high-quality assets and services for the benefits of its stakeholders.

• Reinforce our position in the market as a reliable and competitive independent producer and supplier • Grow sales and customer base • Vezinhlanhla Mining intends to acquire coal, gold, iron ore, manganese ore, chrome ore, nickel and PGM assets to develop new projects • Power generation is a key area of opportunity – a synergistic venture that is now indelibly written into our corporate objectives

MINING

PUTTING HEADS TOGETHER to solve mining headaches

Building on the new focus areas of research at its DigiMine Laboratory, the Wits Mining Institute brought together industry experts at its annual seminar which delved into crucial topics shaping the future of mining, such as integrating critical raw minerals for the transition, the evolving landscape of circular mining and minerals as well as the growing need for waterless mining. CIRCULAR MINING “Our innovative approaches, such as using recycled water and transitioning to solar power, not only reduce our carbon footprint but also enhance operational efficiency and financial viability,” said DRD Gold CEO, Niel Pretorius. “Repurposing redundant mine infrastructure and tailings has allowed us to restore the environment and positively impact nearby communities, ensuring a sustainable legacy for future generations.” DRG Gold has become a waste-neutral enterprise, mitigating environmental impact while generating substantial economic and social benefits. One of the key opportunities he underlined was the extraction of value from previously deemed unrecoverable low-grade ores. “Through optimising processes, leveraging economies of scale and deploying cutting-edge technology we have been able to mine and rehabilitate several operations, including tailings dams.” University of Cape Town professor, Jenny Broadhurst, noted that governments and policymakers play a pivotal role in incentivising circular mining practices and creating supportive regulatory frameworks. “One of the key barriers to these circularity efforts is the existing legislation and regulation. Although there are policies at a higher level that should support these initiatives, the reality is often the opposite.” She also highlighted the importance of collaborative efforts between industry and regulators at both local and national levels. “The burden should not solely fall on governments; mining companies must work with regulators and local governments to create an environment where circularity is not just encouraged but enabled.”

Mzwandile Buthelezi, group head at Implats and chair of the WMI Industrial Advisory Board, highlighted the importance of traceability of materials, a concept gaining traction among investors. He noted that mining companies are working together to define the best methods for material traceability – to establish transparency in the supply chain. This collaborative approach signifies a shift toward openness and accountability, as the industry strives to share information openly with communities and investors.

Klipfontein open-cast mine, Sibanye-Stillwater.

MINING A JUST ENERGY TRANSITION

Dr Nandi Malumbazo, a senior lecturer at the Wits School of Chemical and Metallurgical Engineering, stressed the disparity in critical mineral identification among nations. “China recognises over 80 minerals critical to its economic development, while the UK identifies 34,” said Dr Malumbazo. “In contrast, South Africa is lagging in defining critical minerals based on its industrialisation efforts.” Sietse van der Woude, Minerals Council of South Africa, emphasised that coal was identified as a critical mineral in ensuring energy security and addressing energy poverty in Africa. “The question is now, what does that mean for coal?” asked Van der Woude. “Does it mean that all coal mining companies will have to sell their coal to the power utility at a much lower price than international prices? Or does it mean that we now are going to ban all coal exports because it’s now a critical mineral?” Both Van der Woude and Malumbazo highlighted that defining critical minerals had to revolve around growing the local economy and creating jobs. Malumbazo added that while many African countries, including South Africa, were primarily involved in mining critical minerals, they still lacked downstream value addition. “These nations need to integrate into the downstream segment of the critical minerals value chain, as it is pivotal for economic growth,” she said. Van der Woude advised this needed a closer look. “Instead of universally mandating beneficiation, we need to analyse each mineral and its value chain individually,” he added.

Precious metals refinery at Sibanye-Stillwater.

WATERLESS MINING TECHNIQUES

South Africa’s mining industry is undertaking a transformative approach to its water usage, including advanced water recycling and sustainable dust suppression. Implats corporate water specialist Murendeni Makhado explained that waterless mining initiatives aim to create closed-loop systems where water is continuously reused and recycled. “This reduces the draw from external freshwater sources,” said Makhado.

Sibanye-Stillwater Rustenburg. Anglo American

The power module is lifted into the hydrogen heavy-haul electric truck being assembled at Anglo American Mogalakwena PGMs mine in South Africa.

MINING of mining activities on the entire catchment area, communities, municipalities and other industries.

DIGITAL TECHNOLOGIES

Bathopele mine in Rustenburg, Sibanye-Stillwater.

Sibanye-Stillwater, senior vice president of digital transformation, Werner Swanepoel, pointed out that South Africa is not as disconnected as is often perceived. “We are quick to adopt technological innovations,” said Swanepoel. “However, the key challenge lies in ensuring comprehensive end-toend connectivity and addressing the issue of cybersecurity, which is an integral part of the implementation of new technologies in mining. While pushing technological boundaries is crucial, it is equally essential to prioritise cybersecurity to safeguard these digitalisation efforts.” WMI Sibanye-Stillwater DigiMine head, Ahsan Mahboob, stressed the role of education, training and knowledge-sharing in shaping the future of mining technologies. Mahboob highlighted the intrinsic relationship between technology and the people using it. This gathering of top minds within the mining sector underscored the industry’s collective commitment to finding sustainable solutions and fostering collaborative efforts to tackle pressing challenges. The discussions not only highlighted the urgency of these issues but also showcased the shared dedication of industry leaders, researchers and experts in driving positive change

She further highlighted the role of innovation and technology in achieving this goal, such as the need for internal efficiency improvements and reducing water losses due to evaporation and seepage. Professor Craig Sheridan, director of the Centre in Water Research and Development, and Professor Thokozani Majozi (executive dean of the Faculty of Engineering and Built Environment and active researcher in water process engineering) noted that mining has a small water abstraction footprint; however, its impact on water resources, particularly in terms of environmental contamination, is substantial. “Keeping water within the mining processes can mitigate environmental contamination,” said Professor Sheridan. Makhado added that there was now a shift from internal water management to external water stewardship, considering the impact

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RE-SOLVE

your water issues

Re-Solve Consulting is dedicated to tackling the complex developmental challenges faced by South Africa in the realm of water service delivery. The company is committed to preserving and saving our water sources through a range of cost-effective solutions.

e-Solve’s holistic approach to meeting clients’ needs underpins its commitment to making a difference by preserving and saving increasingly at-risk water sources. Operating countrywide, Re-Solve’s client base includes public and private sector entities, municipalities, metros, utilities, research organisations, international and local development agencies as well as mining and industrial companies. The company also collaborates with a network of partners ranging from financial institutions to water testing laboratories to ensure clients receive the best service and tailored solutions to meet their needs. Over its 18 years of operation, the company has completed more than 200 projects involving the provision of advanced water and environmental engineering solutions to resolve issues around water service delivery, provision and maintenance of infrastructure, system inefficiencies, application of technology, institutional arrangements and capacity development.

PROJECTS

Working across the public and private sectors, Re-Solve has completed several major projects, including: • Remediation interventions of water and sanitation supply at rural schools • Undertaken several water loss projects for various municipalities • Implemented shared cost and water savings initiative for national government departments • Water use licence agreement, preliminary dam design and environmental impact assessment for a major diamond mine • Design and construction of road, stormwater, water and sanitation infrastructure for a proposed housing development for a national property development group • Assessment and installation of bulk water meters and management information systems for various municipalities • Assessment of unaccounted water programmes for various metros.

Re-Solve’s cost-effective interventions have resulted in drastic water savings and reduced water losses for its clients. Services offered include supply and demand management, project planning, contract administration and developmental engineering. Re-solve operates according to the highest international standards and constantly innovates to ensure clients have access to the most advanced technical skills and technology. Re-Solve’s cost-effective interventions have resulted in drastic water savings and reduced water losses for its clients. Re-Solve Consulting is a trusted partner for those seeking innovative solutions to the water-related challenges faced by South Africa and other sub-Saharan countries. Email: info@re-solve.co.za Website: www.re-solve.co.za

WATER

South Africa’s

MINING WATER UPDATE We are currently facing an onslaught of water shortages and shedding/shifting in our metros that we thought would be too large to collapse. Are our mines too large to collapse as their water security is threatened? What are the potential solutions as we strive to ignite our economy? OPINION PIECE BY BENOÎT LE ROY, SA WATER CHAMBER CEO

ater is crucial for mining. When gold mining started in the late 1800s in South Africa, sophisticated utility-scale water services were established, and the then largest inter-basin water transfer schemes were set up to secure water for the blossoming Witwatersrand. Villages were established in the mining areas and semi-independent urban settlements were funded, managed and kept going by the mines themselves. Other basic services such as transport and waste were also established by the mines out of necessity. Mining companies understood over a century ago that their operations could only exist with basic services such as water and sanitation that were provided by them and they did this very successfully for a century or so. In the late 1990s as the democratic dispensation rolled out, the new demarcation of the country took place and within that process, the mining towns became part of local government in all aspects. The decline of basic services with notable water shortages came to the fore as the new architecture showed its abject flaws. Without water security in the mining towns, it becomes impossible to attract and retain the required skills leading to significant inefficiencies and the marginalisation of mines with over 6 000 abandoned mines registered and over 2 000 classified as “high risk” to the public. This has resulted in major environmental catastrophes and water pollution.

The tailings and mine-impacted waters will have to be addressed to protect the water reserve that is already heavily eutrophied and polluted by dysfunctional sewage systems. The irony is that polluting mine-impacted water can be recovered as process and potable water with technology deployed over a decade ago by the private sector in the coal mining space – with 99% water recoveries. The resultant salts are reused as raw materials for the construction industry with other offtakes still underutilised, for example, green hydrogen. We must start practising a circular economy approach that not only addresses the water pollution issues, but also generates new jobs while ensuring that precious raw materials are reused and repurposed sustainably. So, the technology clearly exists but unfortunately, it’s not a government priority as society is not pressurising the issue adequately, yet we will be forced to as our future depends on it. A relatively new phenomenon affecting our water security has made its impact very clear, climate change. The resilience of our poorly managed water systems has resulted in many issues with their frequency on the rise in South Africa and globally. The metro of Ethekwini was ravaged by two floods recently destroying its collapsing sewage systems leading to significant drops in tourism due to the ongoing river and sea pollution where most beaches are continuously polluted. The metro of Nelson

WATER EUTROPHICATION

Eutrophication is a phenomenon that has adverse effects on freshwater systems worldwide when caused by the effects of human activity. A body of water, such as a dam, is deemed eutrophic when it undergoes high primary production of organic compounds due to an overload of nutrients. This over-production of compounds results in algal blooms which may have negative implications for water quality. Among other impacts, eutrophication leads to oxygen deficiencies in the system. South Africa has some of the most enriched surface water in the world and thus eutrophication presents a major problem. The Water Research Commission (WRC), a statutory institution established by an Act of parliament, has been extensively involved in eutrophication research since its inception in 1971 and has published many research studies on the topic. Mandela Bay has suffered severe water shortages due to drought and collapsing water systems causing economic uncertainty and high costs for major industries using groundwater that must be treated expensively at their cost. Business continuity has been severely impacted in these coastal metros due purely to inadequate water security provision by local government. Only the most resilient water assets will be able to survive the climate change onslaught the globe is experiencing. The mining sector faces similar challenges and will have to inculcate with local government the best global water practices to ensure its survival. Will the mining sector afford this? And will local government be able to come to the party? Water has now become a highly contested resource in South Africa due to its general over-allocation for over two decades and the poor state of water distribution systems. The fiscus has also come under

Only the most resilient and best-managed water assets will be able to survive the climate change onslaught.

significant pressure resulting in most programmes identified in the 2018 Water and Sanitation Masterplan being delayed mostly due to insufficient funding from the public sector with shortfalls anywhere between R33-billion to R90-billion per annum for the planned period of 2010 to 2020. This means that the delays in implementing the masterplan will only serve to increase water insecurity, decrease investor confidence and increase the competition to access water for mining operations and its supply chains. The public capacity constraints lend themselves to private sector participation as enshrined in the National Infrastructure Plan 2050. However, institutional and regulatory strengthening will be required to attract this quantum of private investment given our poor track record of late. The opportunity for the private sector to chart a new water security future with the public sector bodes well for the mining industry as collaborative infrastructure programmes will be tailored to suit all stakeholders – hopefully, more expediently and transparently. In conclusion, water security in South Africa is now a key issue with the mining sector that is not excluded as water cuts across all industries and requires urgent, collaborative and decisive action to arrest the decline and rebuild.

ENERGY

HYBRID PROJECTS: a VALUE ENGINE

for renewable energy developers Renewable energy is entering a new chapter. With the success of utility-scale photovoltaic and wind power projects, industry and political leaders are calling for rapidly expanding their energy system’s carbon-free generation. BY KEARNEY CONSULTING*

evelopers are eager to deliver and have set aggressive targets for new capacity installment. However, a paradigm shift across market conditions, grid availability, land use, labour shortage and supply chain disruptions is putting these goals at risk. Achieving the next level of renewable penetration requires the next evolutionary step in project development: hybrid projects – combining multiple technologies in one site, such as wind and solar, or either one with battery storage.

A NEW CHAPTER

Global renewables are scaling up tremendously with European capacity additions growing at 20% CAGR in utility-scale solar and 8.5% in onshore wind. With encouragement – and pressure – from governments, developers are setting bold growth targets – from

national electric giants to pure-play developers. ENEL Green Power, the renewables arm of the big Italian utility, aims to triple its renewable capacity; the Portuguese EDPR is adding 50GW; and German RWE is adding 35GW, all by 2030. Several large oil and gas companies are jumping in as well, with BP considering 50GW of capacity. Meeting those goals, however, will require developers to change their approach, for business as usual will not be sufficient. Suitable sites with high energy yields are becoming scarce, and grid expansion is barely keeping up with added generating capacity. Already, a lack of grid connections has become the main bottleneck for projects in Spain and the Netherlands. Supply chain issues further cloud the picture by lengthening lead times and raising costs. Large-scale substations now have delivery lead times over three years. Wind turbine prices have increased by a third year-over-year.

Kearney Analysis

ENERGY

Figure 1. Falling prices for renewables make it harder to justify future projects. [Note: Data is for Germany.]

On the revenue side, the price for renewable power, which covers only peak or intermittent demand, is falling well below prices for the baseload power provided by fossil-fuel plants. The “duck curve” with its oversupply of PV-generated electricity during the day and steep price increases in the evening, is no longer unique to sunny California and is spreading across Europe. In Germany, we expect PV capture rates to decline from today’s 77% to 67% of average day-ahead wholesale prices in 2030, resulting in a 10% revenue decline for a given PV project (see figure 1). At the same time, subsidy schemes for stand-alone projects are being phased out. In a nutshell, developers must find smarter ways to increase their capacity installations and maintain profitability of their projects.

THE HYBRID OPPORTUNITY

An increasingly often-applied strategy to meet these challenges is the hybridisation of renewable projects, besides sector coupling and virtual power plants. Hybrid projects are defined as onshore co-located and co-controlled generation or storage technologies (no virtual hybrid plants), mature, readily available technology

(PV, wind and batteries; not hydrogen, geothermal, floating solar, hydropower or pumped storage) and utility-scale projects. When thinking about hybrid projects, developers will need to answer three questions: Strategy: can hybrid projects contribute to our strategic goals? Going hybrid is not a strategy, but it must support a strategy. Although individual projects still must make financial sense, they should also contribute to broader strategic goals. Typical objectives hybrid projects can contribute to through their value levers are maximising capacity deployment, broadening and diversifying the portfolio or raising overall margins. When pursuing hybrid projects, developers also need a realistic assessment of where they can be successful. Which hybrid combinations are mature: storage or not? What kind: PV or wind or both? Greenfield or brownfield? That assessment depends on the developer’s capabilities and aims in specific technologies, markets and project roles.

Developers must find smarter ways to increase their capacity installations.

Kearney Analysis

ENERGY Hybrid project types and maturity

Figure 2. Battery storage hybrids are proven at scale, while multigeneration hybrids show initial larger-scale projects. 1Defined as indicative share of hybrids of planned projects involving main generation technology. 2Due to evaporation reduction for hydro and panel cooling and resulting efficiency gains for solar PV.

Suitable sites with high energy yields are becoming scarce. Markets: how mature are hybrid projects, and where? Hybrid projects are becoming common in Europe and the US. For PV, wind and battery, the technology is mature and reliable at scale (see figure 2). Governments are increasingly promoting this shift with supportive regulations, simplified permitting and subsidies. The US grants tax credits for onsite battery electric storage that amounts to a 30% to 62% capex subsidy. In Germany’s latest auction, solar and battery energy storage system hybrid projects benefited from 25% higher tariffs compared with standalone PV projects. Value proposition: which levers support hybridisation? Not every renewable project can or should go hybrid. To assess the value, developers need to consider how much the move would improve their key target metrics, such as the project’s profitability (NPV/MW) and how much additional capacity per year the added investment would realise (see figure 3). Hybridising a project can boost profitability in multiple ways: by achieving higher power purchase agreements (PPAs) through offering a more stable generation profile, postponing electricity sales to higherprice times and realising regulatory incentives for hybrid projects. Few hybrid projects, as currently configured, are big enough to deliver true baseload-level electricity in PPAs. But the hybrid combination still makes projects far more amenable to what utility and C&I customers need now. Both kinds avoid or soften the “duck curve” problem.

Project value is created by minimising curtailment (increasing the total annual production volume) and by achieving a lower specific (per MWh) capex through shared grid access. Indeed, a hybrid PV + battery project will certainly achieve a higher utilisation of its grid connection capex than a standalone PV and standalone battery project with separate grid access points. Opex savings are also possible, in technical management as well as operations and maintenance, but require a critical size of technology types and platforms. Hybrid projects reduce imbalance costs by minimising forecasting errors. A second onsite technology diversifies risks from unpredictable weather, while storage irons out unwanted variable generation. Hybrid projects may offer lower hurdle rates for experienced developers through improved diversification. As for capacity addition volume, hybrids enable capacity extensions at existing grid access points (circumventing bottlenecks), allowing developers to deploy more capacity in shorter time. Hybrids tend to take less time to realise than two separate generating sites because local stakeholders are known and developers can use their existing talent in joint development. Hybridisation can help meet increasing regulatory requirements. The hybridisation of renewable energy projects thus presents a large value opportunity in both project profitability and capacity deployment.

THE ROAD AHEAD While the starting point is different for each developer based on the maturity of technology and operations, the steps to a successful hybrid project organisation are alike. Organisations should start their

Kearney Analysis

ENERGY Value proposition: driver tree and value levers vs standalone cases

Figure 3. Hybridisation of projects can improve project values and accelerate the capacity extension. 1Value potential in relation to standalone business cases (eg what additional value levers does a wind + BESS project have against two standalone projects?)

hybrid projects journey with a view on opportunities, then build capabilities and move deliberately toward excellence. Phase 1: estimate the potential and set the strategy A hybrid strategy starts with assessing how hybrid projects can contribute to strategic goals such as maximising generating capacity or firming up the portfolio. If there is a role for hybrid projects, projects in the pipeline or portfolio are evaluated through a standardised quick assessment. This covers, for example, factors such as the local grid situation, the regulatory environment or the co-located resource potential for PV and wind. Finally, some strategic guidelines are set: is the company willing to invest in building up capabilities in a new technology such as onshore wind because it has hybrid potentials in the portfolio? Or is the existing technology focus a core part of competitive advantage? Which types of projects, which countries or regions and which value chain roles are in scope? Phase 2: build capabilities and a track record First, select a pilot project with a lower risk profile. This can be a smaller or brownfield project requiring repowering or one with clearly favourable hybrid economics. Working with partners is a sensible strategy for early hybrid projects. This is especially true for projects using technologies that the developer has no experience with so

Hybrids are more than simply adding on a second asset.

far. Using the right risk allocation and project entity structuring (for example, around individual technologies) helps manage the cost of capital for initial projects as both developers and financiers build a track record and get comfortable with hybrid projects. Phase 3: optimise operations After gaining experience, developers should aim to industrialise their hybrid project development. That can mean building out an overarching competence centre for hybrids to overcome silos between PV and wind development teams or building up differentiated capabilities, such as in integrated project techno-economic modelling. It means fine-tuning processes for hybrid projects, which might struggle with different development timelines of wind and solar PV, for example. If done in-house, hybrid projects might also mean advancing technology and capabilities of trading organisations working with hybrid projects to capture as much value as possible. Systemic change is happening in global electricity markets: the rapidly growing share of renewable energy will cannibalise its returns without flexibility, and markets are increasingly incentivising flexibility. This will require renewables players to evolve their development practices into hybrid projects to ensure value creation in their projects. But doing so requires substantial structural, technological and operating adjustments. Hybrids are more than simply adding on a second asset. To realize the true potential of hybrid and address the rising imbalance in power capacity, developers will need to do more than pivot to hybrid. They’ll need a broad reworking of investments, outlook and practices.

ENERGY

Going hybrid is not a strategy, but it must support a strategy.

ENERGISING TOMORROW

In a significant step towards a resilient future, Scatec ASA has officially started producing and supplying electricity to the national grid from the three Kenhardt plants in the Northern Cape province. The Kenhardt project is positioned to make a notable impact on the renewable energy landscape as one of the world’s first and largest hybrid solar and battery storage facilities. With installed solar capacity of 540MW and battery storage capacity of 225MW/1 140MWh, the project delivers 150MW of dispatchable power from 5am to 9.30pm year-round to the national grid under a 20-year PPA with Eskom. With a total investment of USD1-billion, the project debt is provided by a group of lenders which includes The Standard Bank Group as lead arranger and British International Investment. “This is more than just a power plant; it’s a testament to the limitless potential of integrating solar and battery storage to meet the evolving energy needs of today and tomorrow,” says Terje Pilskog, CEO of Scatec. A hybrid solar and battery storage plant integrates solar and battery technologies, overcoming intermittency challenges and bolstering grid stability. With the ability to deliver reliable power in low or no sunlight, the integrated storage enhances overall reliability. Dispatchable power production and the release of stored energy during peak demand make these plants ideal for meeting regionwide energy needs during high consumption periods.

The Kenhardt plants in the Northern Cape province. *Authors: Hanjo Arms, partner, Oskar Schmidt, principal, Jan Weber and Tobias Menzel, Consultants. The authors wish to thank Rebecca Meier and Daniel Handschuh for their contributions to this article.

LOCAL

CHALLENGES DEMAND LOCAL

SOLUTIONS

ACTOM, your local renewable energy project solutions partner. Through our innovative turnkey product range and dedicated team of experts, we are firmly rooted in our commitment to the growth and empowerment of our continent’s sustainability energy needs.

Strive for Net Zero while saving money at the same time! Rooftop, solar carports, ground-mounted solar, and agrivoltaics represent the best-value energy available to the energy customer in South Africa. Blue Sky Energy is an expert in the design, procurement and construction of such plants. Battery energy storage installations provide access to solar energy daily during peak hours when the sun is not shining and enable users to bridge their primary energy needs through grid interruptions. While the levelised cost of hybrid solar and battery storage installations is significantly greater than solar PV only, appropriately sized solutions can be commercially feasible. Would you like to know if your property or business can achieve energy security at the same cost or less than what you are paying currently?

Agrivoltaics and Solar Carports

Have you considered putting your spare space to work? Whether you have low-value land or large parking spaces, bring them to life through solar PV installations that create energy and highvalue spaces such as shade for parking or tunnels for agriculture.

Website: www.blue-sky.energy Email: enquiries@blue-sky.energy

123RF

Blue Sky Energy works with leading light steel frame construction suppliers to offer a range of innovative solutions such as agrivoltaics and solar carports.

Did you know that Section 12B of the Tax Act allows for the accelerated depreciation of your power generation capex, resulting in a 27.5% saving on your project installation?

123RF

CONTACT THE EXPERTS AT BLUE SKY ENERGY RIGHT NOW!

ENERGY

Getting the best return on your

SOLAR PV INVESTMENT

With the cost of electricity rocketing up beyond R3.50/kWh and increasing exponentially yearon-year, getting the best payback on your solar investment should be a key motivator and objective. Uncover how to scale your solar PV system to get the very best returns. BY TERESA KOK, ONE ENERGY GROUP

t all starts by getting a thorough electricity usage and needs analysis done to determine the best system design to ensure your system can equally generate and supply enough power to reduce your grid electricity usage and cost as much as possible.

MATCH DEMAND WITH SUPPLY

Proper monitoring and analysis of your electricity usage will reveal when your peak electricity demand happens and how much you use on various circuits. From here, you can design a system that generates what you would normally use from the grid. Monitoring shows you which appliances or devices are pulling the biggest loads, allowing you to reconsider not only their time and duration of usage, but whether there are more energy efficient options to take into account. Consider installing a timer on your geyser to manage the time slots of when it will draw power for water heating – or better still, convert to a solar geyser.

ADD SOLAR PANELS

Installing an inverter and battery system for back-up only without solar generation capacity (panels) means that you need to use the grid to recharge your batteries when the power comes back on. So, although you are in no better or worse off position in terms of cost of grid electricity, you are also not saving anything on your electricity costs. By adding solar panels for self-generation, every kW that you generate from your panels is one less that you will need to draw (and pay for) from the grid. For businesses where your main electricity consumption happens during daylight hours, which is also when the sun is supplying the bulk of your electricity needs, this is an

absolute win. When selecting panels, invest in the highest-grade monocrystalline panels you can – premium efficiency translates directly into better energy output and savings over time. If your PV solar array produces more energy than you need, certain municipalities allow feeding back into the grid, and the utility pays for this excess power generated by your solar panels, essentially offsetting what you use from the grid, against what you feed back in. However, many feed-in tariffs are not yet at a point where it is worth spending money on a larger PV system, and often requires a costly upgrade to your electricity meter for your account. For now, the most savings you can make is by storing your excess generation in a bigger battery bank, and then using your own energy when you need it. Your best option is to get as close to 90% or more of your electricity usage coming from self-generation.

ADD BATTERY STORAGE There’s every reason to bulk-up on battery storage not only for when the grid goes down, but to reduce your usage from the grid as far as possible as grid electricity costs soar. Your intelligent hybrid inverter will ensure that all the energy generated by your solar panels will first go towards powering your property and all the circuits that are connected to it, and then diverting any surplus to charge your batteries up again so they are ready to carry you through the grid outages and when the sun is no longer shining. If you have enough battery capacity and your system is programmed correctly, when your property starts to draw from the grid when the sun goes down, the battery will step in and supply the energy saved in your batteries from earlier, instead of you drawing from the grid.

ENERGY

Every kW that you generate from your panels is one less that you will need to draw (and pay for) from the grid. UNDERSTANDING THE LIFETIME COST There is a perception that lithium-ion phosphate batteries installed as a key component of a hybrid PV system are expensive. This is simply not true if one calculates the average cost per kW over the life of the battery. The battery energy cost is significantly lower than the cost per kW than Eskom or your local council supply costs, and massively lower than the cost of a diesel genset KW. Consider the following calculation based on a 5kW battery costing R30 000: • With a Depth of Discharge (DOD) of 80% (ie 80% of usable capacity which is a protective mechanism that extends the lifespan of your lithium-ion battery) – therefore 4kWh usable power per cycle • Battery lifespan = 6 000 cycles • Total power over life of battery = 6 000 cycles x 4kWh per cycle = 24 000kWh • Average cost per kWh = R30 000 / 24 000kW = R1.25 per KWh Now compare this to the current Eskom residential cost of R3.51 (Ekurhuleni tariff B). Generator sets run at an insanely high average cost of between R6 and R8 per kWh, and need regular maintenance which adds to costs. Your strategy should be to cycle the lithium batteries and increase the battery capacity to maximise the installed inverter and panel array capacity as close to daily electricity consumption as possible. With today’s high energy prices and the rapidly reducing costs of quality battery storage, more homes and businesses are better off looking at greater battery storage capacity.

A QUALITY HYBRID INVERTER IS KEY

The inverter you choose is an important aspect for realising the best solar return on investment (ROI) – opt for a reliable hybrid inverter with a 10-year warranty. Remember that your solar panels have long lifespans of up to 25 to 30 years and require little maintenance, while lithium batteries offer lifespans of anything from 6 000 to 8 000 cycles (16 to 22 years at one cycle per day), so choose a good quality inverter that will perform as dependably, for as long. One of the key issues with cheaper, “off-grid” inverters is that they are unidirectional so the solar power can only address the essential services circuits, and savings cannot be made on the higher load items that are not on the backup side of the distribution board. More sophisticated hybrid inverters are bidirectional, so they allow savings both upstream and downstream of the inverter, drawing power from both the grid and battery storage in a coordinated exercise to maximise the power you use from self-generation, and only drawing from the grid when it’s necessary.

CONVERT TO A SOLAR GEYSER

An electric geyser typically accounts for 30% to 40% of your monthly electricity usage and cost, so this is the most crucial starting point to reducing your daily electricity load, and which means you can also buy a smaller and more affordable PV solution. On a R3 000 electricity bill, you’ll save around R880 per month, amortising your outlay in just over two years, that’s without even taking annual electricity cost increases into account.

THE SOLAR PAYBACK PERIOD

The “solar payback period” is the time it takes to recoup your initial investment in a solar power system. Most residential systems end

The proper installation and management of a solar PV system is a complex undertaking.

ENERGY

Your best option is to get as close to 90% or more of your electricity usage coming from self-generation. up performing as a solid investment, in which you yield a return. The payback period length can vary due to differences in peak sunlight, solar array size and other factors. Many homeowners report breaking even on their investment within five to seven years, but with the skyrocketing cost of electricity each year, this payback period is coming down all the time. You can calculate the solar payback period with the following formula: Initial system cost / annual electricity savings = payback period. (Break-even)

ROI FOR YOUR SYSTEM

Return on investment (ROI) is related to the solar payback period, but instead of calculating the time it takes to break even, ROI calculates the total amount of money and savings that a PV array will provide over its lifetime and the expected utility costs for the same period. Consider the following example: On an electricity bill of R2 450 per month, which is around 700kWh usage per month (23kWh/day) at a tariff of R3.50 per kWh (2023), the system spec and cost looks like this: System spec • 5kW inverter • 10kWh lithium-ion batteries (upscale your batteries for reasons explained earlier – its cheaper per kWh than Eskom/council) • 4.3kW solar panel array Price, fully installed with all materials and COC: R148 000 This size system will generate between 20kWh to 22kWh per day – 90%+ of your daily electricity needs. On an upfront purchase • Based on an 18.65% electricity tariff increase this year and 12.74% for the next year and a very conservative 5%/pa thereafter (this figure is going to be higher as it does not factor in the increases that local councils will add on top of this). • Your breakeven point is just over five-and-a-half years based on electricity savings. • Your ROI is based on a conservative escalation of 5% in electricity tariffs from year three. Your cumulative savings on electricity costs will be R350 000 after 10 years and R940 000 after 20 years – this is a savings multiple of 6.3 on your original investment of R148 000.

On a finance option • Based on prime interest rate, with a finance term of 60 months with no annual escalation, your monthly repayment cost is going to be around R3 580. (Figures may vary based on your credit rating and rates applied.) • Your savings on your monthly electricity bill is around R2 200 per month in year one and which then escalates as does the cost per kWh of grid electricity – this saving will offset a significant portion of the monthly loan repayment. • Your system will be fully paid off in five years (60 months) and you will own it, and for the rest of the 15 to 20+ years of the system’s lifespan, you will be generating your electricity for free, with less than a 10% reliance on grid electricity.

CHOOSE YOUR PARTNER CAREFULLY

Getting the best return on investment in renewable power, whether for your home or your business, will be based on the initial cost to install your system, the amount of energy it will produce and store, and what this will mean in terms of electricity bill savings, as well as the quality and performance of the equipment, installation and ongoing management of your system. Enlist the help of a renewable energy installer that can fully explain your options and show you the calculations. And remember with the right set-up from the start, you can expand your system capacity as your budget allows and your needs change. Work with a credible, qualified and accredited renewable energy partner that will be around for back-up, support and ongoing consultation over the lifespan of your system – that’s a good 20 to 25 years. The proper installation and management of a solar PV system is a complex undertaking that requires a deep understanding and experience of the various technologies on the market that are suited to the specific circumstances of every client and site.

ENERGY

ACCELERATING the TRANSITION Air Products South Africa, a 50/50 joint venture between Air Products and Chemicals (USA) and Remgro, has operated locally since 1969. From the solid foundation of its existing core industrial gas business, the company is accelerating the transition to a cleaner energy future. Green Economy Journal caught up with the new MD, Charles dos Santos. Congratulations on your appointment as MD of Air Products, Charles. Please share your career trajectory to this point. I studied Chemical Engineering at the University of the Witwatersrand. As I had a business interest, I continued to study part-time for a BCom at the University of South Africa. I started at Air Products in 1994 in the bulk sales department, but soon moved into plants and projects business development. I was responsible for securing key growth projects that lead to my promotion to departmental manager. After many years in that role, I was offered an opportunity to become the managing director of a company called The Combustion Group, which gave me experience leading an organisation and I learnt more about energy (natural gas) and power generation. Following on an unexpected retirement, I was offered an opportunity to return to Air Products as the general manager of the on-sites business unit in 2016. From 1 February 2024, I will be taking over as managing director from Rob Richardson, who is retiring. Please tell us about Air Products. Air Products manufactures and distributes (via pipeline, bulk tankers or in cylinders), a variety of industrial and specialty gases and supplies related equipment and engineering services to customers in industries including steel, petrochemical, mining and metal processing, manufacturing, food and beverage, among others. Founded in the USA in 1940, Air Products operates in over 50 countries. Air Products aims to be the safest company to work for and strives to provide excellent service to our customers. Hydrogen has the potential to be a game-changer in the quest for sustainable transportation. Please expand. Zero-emission hydrogen fuel cell vehicles can decarbonise heavy modes of transport, like buses, trucks, trains and ships. However, this will require the commercialisation of economical hydrogenpowered vehicles. A 20% reduction in global emissions is possible if hydrogen is utilised to decarbonise heavy-duty transport and industry. Furthermore, this hydrogen will be produced locally from our abundant renewable energy resources, creating jobs locally, giving South Africa energy independence and improving our trade balance (as it reduces our imports of fossil fuels). Air Products is ideally positioned to lead in establishing a sustainable hydrogen ecosystem in South Africa. How so? We are an experienced, well-established South African hydrogen supplier. We have almost 150km of hydrogen pipelines supplying existing industrial customers in the Vaal Triangle and Springs. These

A 20% reduction in global emissions is possible if hydrogen is utilised to decarbonise heavy-duty transport and industry. pipelines cross or are located close to major transport routes like the N1, N3, N17 and R59. We also have a fleet of hydrogen tube trailers and numerous hydrogen cylinders in circulation. Being part of Air Products globally, we have access to global best practices, technical support and know-how to leapfrog development phases and speedily roll-out the tried and tested and latest technologies. Please discuss the challenges associated with hydrogen refuelling infrastructure in South Africa. First, hydrogen is currently costly to transport over long distances and impractical to store in large quantities. Second, the current hydrogen infrastructure is primarily limited to regions around Gauteng. Capital intensive distributed hydrogen generation and pipeline systems will be more optimal. This would use the existing power grid infrastructure to transport renewable power to the hydrogen generation sites. Although upgrades are required to the South African power grid, these upgrades are needed anyway to meet the country’s electricity needs. As a starting point, it makes sense to focus on captive fleets (ie fleets that come back to base daily or only transport goods on set routes around which the infrastructure can be built). However, the elephant in the room is how will the South African economy be able to afford green hydrogen? The cost of green hydrogen will be higher than our traditional fuels. The capital cost of fuel cell vehicles is still much higher than diesel vehicles and the availability of vehicles is still very limited. The manufacturers do not have sufficient capacity yet to meet the needs of the market in Europe etc, which are much more attractive bigger markets with the appetite and ability to pay the premium for green mobility. So, this industry is potentially going to take some time to develop in South Africa.

MOBILITY

Rapid shift to

RENEWABLE ENERGY

vital for EV transition

SA’s long-awaited Electric Vehicles White Paper was released at the end of 2023, with Minister Patel emphasising that the value of SA’s electric vehicle market will be realised only if our national energy mix seriously accelerates our renewable energy capacity.

he Electric Vehicles White Paper provides the long-term strategy for South Africa to transition to electric vehicles, and makes the argument for a strong shift to more renewable energy, Trade, Industry and Competition Minister Ebrahim Patel says. “The grid has to become greener, not only for purposes of general climate change and to ensure a wider source of energy, but also because the value of the domestic market transitioning to electric vehicles (EVs) will only demonstrate itself if the charging infrastructure can pull energy that is a lot more renewable than currently is the case,” says Patel. The Electric Vehicles White Paper, which was approved by the Cabinet last year, aims to ensure South Africa becomes part of the global shift from internal combustion engine vehicles (ICEVs) to

new-technology vehicles (which include battery EVs and hybrids). South Africa’s transport sector is the second biggest polluter after the power industry – accounting for 13% of the country’s CO2 emissions, with road transport accounting for 91.2% of these transport emissions. In addition, South Africa’s automotive manufacturing industry is seriously at risk if the country does not transition. The National Association of Automobile Manufacturers of South Africa (Naamsa) reported that three out of every four vehicles exported were destined for the EU and the UK, which have set bans on the sale of new ICEVs from 2035. “We’ve got to make this transition for climate change purposes. But also, for industrial policy purposes,” Patel says.

MOBILITY “This has been a successful contributor to South Africa’s GDP and manufacturing output and employment, and we want it to have a sustainable future in South Africa.” How would South Africa transition to EVs when it can barely keep the lights on? Patel says that the pace of South Africa’s transport transition would be influenced by several factors, including the fact that the country was battling with an energy shortage (he adds that South Africa would need to “avoid a sharp rise in energy demand on the grid from electric vehicles while the grid capacity is being rebuilt”), its energy mix was dominated by coal (which means charging an EV wouldn’t be as green as it is in other countries), and it was still in the early stages of rolling out charging infrastructure. As a result, the Electric Vehicles White Paper argues that the transition to EVs is dependent on the national energy mix shifting to renewable energy. “If our grid remains coal-based, the climate change value to domestic consumers will be lower,” Patel adds. “So, we are backing a green dash to try to get greater levels of renewable energy on the national grid.”

PHASE 1. BUILDING PRODUCTION CAPABILITY

South Africa doesn’t manufacture EVs locally – this not only means buying one in South Africa would be expensive (as it would be imported), but the local automotive manufacturing industry (which serves some 500 000 jobs) is seriously at risk – 66% of South Africa’s light vehicle production is exported overseas, with most of those cars going to countries that are planning on banning ICEVs soon. The first phase of the White Paper focuses on building production capability for electric vehicles. “We don’t want to be relegated to being only an ICEV producer,” Patel says, warning that if the transition to EVs was poorly managed, South Africa would have to import EVs, and because it is reliant on exports, by 2030 South Africa would have a declining asset base.

The transition to EVs is dependent on the national energy mix shifting to renewable energy.

Does the grid have the capacity to support EVs? MJ Booysen, an engineering professor at Stellenbosch University whose research and projects focus on electrifying the transport sector, says, “The answer is … it’s a negative number.” However, there are private companies that provide off-the-grid charging stations. As of mid-2023, South Africa had about 350 public EV charging stations, and many companies plan to expand. Patel says that while off-the-grid charging is part of the solution and should be encouraged, “We see it still being useful for early adopters and at a modest scale. If you want to move significantly, you’re going to have to integrate it into a stable infrastructure that can take a high load factor.” Patel emphasises that this meant dealing with grid constraints, and while this White Paper is not South Africa’s Integrated Resource Plan (which lays out the future of the country’s energy mix), it “makes the argument for a strong shift to more renewable energy”. Mike Mabasa, the CEO of Naamsa, said many original equipment manufacturers were looking at technology that recharged the battery as the vehicle moved. Some EVs have replaceable batteries, “So you drive into a charging station and instead of waiting for two hours to have the battery charged, you have it swapped for another.”

Article courtesy Daily Maverick

PHASE 2. STIMULATING DEMAND FOR EVS

Mabasa says, “We are very pleased to note that the White Paper takes into account stimulation for demand in Phase 2 … because we recognise the fact that the government is managing a number of competing – both social and also economic – challenges.” South Africa has only about 2 300 EVs among some two-million passenger vehicles, which is a far cry from the rest of the world, with 14% of all cars sold worldwide in 2022 (amounting to 10-million) being electric.

MOBILITY

SA’s automotive manufacturing industry is seriously at risk if the country does not transition.

“The world does need to make this change to a greener future. But it’s not as simple as it sounds to say, ‘Well, we’ll have a just transition, so there’ll be no losers,’” Patel acknowledges. “What do you do with the more than 100 000 service station attendants and mechanics? Because we don’t control technological development and it may be then everybody ends up charging the cars at home. “You have got to be able to navigate with a lot of thought and that is really what the White Paper does – and that is why it has taken a bit of time to get all of those things on the table to balance them carefully.”

Dr Norman Lamprecht, the executive manager of trade, research and exports for Naamsa, says that one of the inhibitors is the price differential between a battery electric vehicle and an ICEV is around 52%, with no demand side-support in place to address this. “In many other countries in the world the governments provide an incentive such as cash grants or tax benefits to reduce the price gap in order to stimulate sales of EVs,” Lamprecht says. The lack of policy incentives from the government has been a big reason for South Africa losing the EV race and is one of the reasons this White Paper (which was meant to come out in 2021) is such a big deal. Patel says they expected the price differential to come down in the next eight or so years, adding, “It may be quicker. Technology always surprises everybody.” The cost-benefit assumption of the just transition Electrifying South Africa’s transport sector will contribute to the country’s global decarbonisation goals.

THOUGHT [ECO]NOMY

READ REPORT

greeneconomy/report recycle

ELECTRIC VEHICLES WHITE PAPER | Department of Trade, Industry and Competition (dtic) | [November 2023] Adoption of EVs has increased globally, driven in part by greater government incentives such as tax breaks and targeted subsidies for producers and consumers as well as demand trends. Several regulators have also decided to ban the sale of new Internal Combustion Energy (ICE) vehicles within the next 12 years as part of their contribution to achieving net zero emissions by 2050, including markets like the EU and UK. These global trends will have a significant impact on South Africa and its economy. Not only is South Africa the largest automotive manufacturing hub on the African continent, but it is also highly integrated into global supply chain that draws components from across the world, including the SADC region, and exports the final consumer product to more than 150 countries worldwide. As a larger number of countries transition both their consumer and production markets to EVs, the impacts will be significant for South African producers. The effective bans on ICE vehicles in key markets like the EU and UK will be profound, as they absorb half of South African auto production. Allowing the South African automotive industry to decline without the appropriate support is thus not an option for government. The automotive industry contributes significantly to the South African economy, ranking as the fourth largest in terms of output across all manufacturing sectors and contributing materially to export revenues; they account for a significant part of the regional development in provinces like Eastern Cape, Gauteng, and KwaZulu-Natal; and the industry creates and sustains large numbers of jobs and promotes skills development. This White Paper sets out the policy goals and actions which will be taken to support the transition towards a broader new energy vehicle production and consumption in South Africa, with an immediate focus on EVs.

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Altum Energy: BASF NAS® Battery Storage Business Development Partner – Southern Africa

MOBILITY

Masslift RAISES THE BAR with the Mitsubishi Counterbalance

Electric Forklift Masslift proudly presents the Mitsubishi Counterbalance Electric Forklift as a symbol of innovation and sustainability. As local businesses grapple with challenges such as power supply interruptions and soaring fuel costs, Masslift’s offering emerges as a steadfast ally in eco-conscious operational excellence.

ith the arrival of the new year, a heightened awareness of the imperative for sustainability permeates every aspect of our lives, with businesses, especially in the manufacturing and distribution sectors, reassessing their strategies for a more sustainable future. The Mitsubishi Counterbalance Electric Forklift seamlessly aligns with this ethos, delivering an eco-friendly solution that mitigates reliance on conventional fuel-driven alternatives. The transition towards electric forklifts is pivotal in curbing carbon emissions, harmonising with worldwide endeavours to address climate change. Mitsubishi’s commitment to sustainability is evident in every aspect of the Counterbalance Electric Forklift, from its purposeful design to its core functionality. Spanning a range capacity from 1.0 ton to 5.5 tons, these forklifts are intricately tailored to meet the diverse operational needs of businesses, presenting a versatile and sustainable alternative to their traditional counterparts.

ECO-MODE FEATURES

The ECO-Mode embedded in the Mitsubishi Counterbalance Electric Forklift isn’t just a feature; it’s a game-changer. The ECO-Mode optimises forklift performance, syncing speed and power with energy conservation, ensuring your operations are eco-conscious. The ECO-Mode button becomes your conductor’s baton, leading your forklift through a harmonious blend of performance and sustainability. Speed and power are at your fingertips, while the promise of saving energy ensures that every lift is a step towards a greener future.

LITHIUM-ION BATTERIES

Loadshedding shouldn’t be a hurdle; it should be an opportunity to showcase the resilience of your operations. Masslift’s Mitsubishi Counterbalance Electric Forklift is equipped with advanced lithium-ion batteries, empowering your forklift to navigate power disruptions easily. In a world where power interruptions have become a daily challenge, lithium-ion batteries ensure your forklift won’t leave you in the dark. The forklift becomes more than a machine; it becomes a reliable partner, illuminating the path to sustainable material handling.

LESS MAINTENANCE, MORE POWER

With streamlined drivetrains and minimal moving parts, maintenance becomes a worry of the past. No more frequent replacements, no more costly tune-ups. Your forklift becomes a symbol of reliability

and durability, ensuring that your focus remains where it should be – on the tasks that truly matter. In an era where environmental consciousness is not just advisable but imperative, the Mitsubishi Counterbalance Electric Forklift is a testament to Masslift’s commitment to its role. If you are worried about the longevity of your machine’s battery amid power supply disruptions or the escalating fuel cost, this groundbreaking forklift positions itself as a pivotal player in the broader global transition towards a green economy.

ADVANCED SAFETY FEATURES

Masslift’s Mitsubishi Counterbalance Electric Forklift embodies an unwavering commitment to sustainability and safety in material handling. This forklift prioritises operator and operational well-being, integrating cutting-edge safety features that redefine industry norms. It incorporates travel, speed, lift and control features, including a speed limiter, speed reduction during turns, load-dependent travel speed limits and precise control of lift height and tilt speed. The pitching control minimises road vibrations, enhancing operator comfort, while the Travel Hydraulic Interlock disengages movement when the operator isn’t seated, ensuring accountability. Navigating the material handling landscape, Masslift focuses on innovation, sustainability as well as paramount health and safety. Our customer-centric approach is centred on optimising operations. The Counterbalance Electric Forklift emphasising sustainability through lithium-ion batteries, exemplifies our dedication to forward-thinking solutions. Connect with our Masslift sales team, and let’s collaborate to maximise your operational efficiency while prioritising your team’s unique health and safety needs. Phone: 011 786 8524 Email: sales@mlift.co.za Website: https://mitsubishiforklifts.co.za/ Linkedin: https://www.linkedin.com/company/masslift-africa

THOUGHT LEADERSHIP

THE

green economy/ built environment

NEXUS

The introduction to the Green Economy Journal defines the green economy as one where economic activity pursues the reduction of negative environmental and social impacts while advancing positive ones. By implication, therefore, the green economy cuts across all sectors and value chains: and is characterised by actions, services and projects that advance environmental sustainability. BY LLEWELLYN VAN WYK, B. ARCH; MSC (APPLIED), URBAN ANALYST

n a broader sense, an economy is a complex system of interrelated extraction, production, distribution, consumption, disposal and exchange within those activities that ultimately determines how resources are allocated among all the participants (figure 1). The term “economy” can denote careful management of available resources: in this context, the production, consumption and distribution of goods and services should combine to fulfil the needs of all those living and operating within the economy while supporting the natural environment.

Figure 1. Conventional economics/linear economy. (Llewellyn van Wyk, 2023)

THE BROWN ECONOMY

Conventional economic theory Conventional economic theory, or orthodox economics, is a broad term that refers to the dominant economic theories and models that have been widely taught and accepted for many years. These theories form the foundation of modern economics and are often based on classical economic thought, neoclassical economics and Keynesian economics. It is generally held that conventional economic theory is based on several assumptions: 1. Rationality. People make decisions that maximise their self-interest. 2. Information. People have access to all relevant information and can process it efficiently and effectively. 3. Maximisation. People always aim to maximise wealth and income. 4. Market efficiency. Markets are efficient, meaning that prices reflect all available information and resources are allocated in the most efficient manner. These assumptions, however, are now challenged by various branches of economics. Some critiques include its assumptions about human behaviour, the role of institutions and its ability to address real-world complexities and issues such as income inequality, environmental sustainability and market failures. As a result, alternative economic theories and approaches have gained attention, such as behavioural economics, ecological economics and post-Keynesian economics, offering different perspectives on economic phenomena.1

THOUGHT LEADERSHIP THE GREEN ECONOMY

Ecological economics Ecological economics is both a transdisciplinary and an interdisciplinary field of academic research that addresses the interdependence and coevolution of economies and ecosystems (figure 2). More critically, it treats the economy as a subsystem of Earth’s larger ecosystem and emphasises the preservation of natural capital.

The constructed environment also has a role to play in a just transition.

Figure 2. Ecological economics. (Llewellyn van Wyk, 2023) Biophilic design focuses on human adaptations to nature.

As argued by ecological economists like Malte Michael Faber and Robert Costanza, ecological economics is defined by its focus on nature, justice and time. Issues of intergenerational equity, the irreversibility of environmental change, the uncertainty of long-term outcomes and sustainable development guide ecological economic analysis and valuation. Here it is important to distinguish between “environmental economics” and “ecological economics”: ecological economists argue that environmental economics applies standard economic thinking to the environment unlike ecological economic thinking which integrates three interrelated goals namely sustainable scale, fair distribution and efficient allocation into its consideration. The question of scale – the first interrelated goal – has been discussed in previous think-pieces (Green Economy Journal, Issue 61, 2023/24) Costanza argues that conventional economics does not recognise the importance of scale – the fact that we live on a finite planet or that the economy, as a subsystem, cannot grow indefinitely into this larger, containing system. In short, there are biophysical limits. Mainstream economics or the brown economy does not recognise those limits, believing that technology can solve resource constraint problems. The second interrelated goal is distribution. This has many impacts,

including impacts on social capital and quality of life. The general assumption is that the more we have of any one thing the more we can spread it around. However, we are fast approaching the point where distribution is a concern: we may not always have “more” to spread around. The third interrelated goal is allocation. The assumption that the market is efficient at allocating resources only holds true while externalities are excluded. Natural and social externalities are clearly demonstrating that they are larger than the externalities of what is going on in the market. The desire to build bigger and better is cited by Costanza as an example of a social externality: using the built environment as a metaphor, various organisations and countries attach significant importance to building the tallest skyscraper in the world, even if that building’s sewerage must be collected by trucks because the bulk sewer system cannot cope with the additional demand. The green economy therefore emphasises the integration of environmental and social considerations into economic policies and practices. Key objectives of a green economy include: • Environmental sustainability. Prioritising the conservation of natural resources, eliminating pollution and neutralising the environmental impact of economic activities.

THOUGHT LEADERSHIP

Ecological economics is defined by its focus on nature, justice and time.

• Social inclusion. Ensuring that the benefits of economic activities are distributed equitably among different segments of the population and that vulnerable groups are not disproportionately affected. • Resource efficiency. Promoting the sustainable and efficient use of resources, including energy, water and raw materials to eliminate waste and enhance overall efficiency. • Renewable energy. Increasing reliance on renewable energy sources such as solar, wind and hydropower to reduce dependence on fossil fuels and mitigate climate change. • Circular economy. Transitioning to a circular approach to production, distribution, consumption and disposal where products and materials are reused, recycled or repurposed to extend their lifespan and reduce waste. • Green jobs. Fostering the creation of employment opportunities in sectors that contribute to environmental sustainability, such as renewable energy, energy efficiency and conservation. • Innovation and technology. Supporting research, development and the uptake of technologies that contribute to environmental

sustainability and improve overall resource efficiencies. • Policy integration. Implementing policies that align economic, social and environmental goals to create a holistic and sustainable approach to development. The concept of an ecological economy (green economy) is gaining prominence in response to the growing awareness of environmental challenges, including climate change, biodiversity loss and resource depletion.

ECOLOGICAL (GREEN) ECONOMICS

AND THE BUILT ENVIRONMENT The green economy and the built environment nexus refer therefore to the interconnected relationship between sustainable economic practices and the physical structures and spaces in which we live and work. Investment in the built environment should consider externalities such as carbon emissions and pollution, enhanced energy and resource efficiency and the prevention of the loss of biodiversity and ecosystem services (replace what is displaced).

THOUGHT LEADERSHIP The built environment, which refers to the full life cycle (design, materials production and distribution, construction, usage and demolition) of all infrastructure assets, is directly or indirectly responsible for approximately 40% of global CO2 emissions from fuel combustion and 25% of overall greenhouse gas (GHG) emissions. To meet net-zero emission targets by 2050, various infrastructure sectors will need to triple the pace at which they decarbonise compared to the past 30 years. Several possible decarbonisation pathways across materials, design and technology collectively could help mitigate a significant portion of overall emissions. Within the broader social externalities, the constructed environment also has a role to play in a just transition. The impacts of environmental degradation tend to fall unequally on vulnerable groups. Policy packages for an inclusive green transition should aim at mitigating the regressive impact of pricing environmental externalities, investing in human capital and upgrading skills to facilitate labour reallocation, addressing systemic inequalities with sectoral and place-based policies as well as ensuring efficient and responsive governance.

Ecological economics addresses the interdependence and coevolution of economies and ecosystems. CONCLUSION

In summary, the green economy and the constructed environment are intertwined in a symbiotic relationship where sustainable building and construction practices (SBC), energy use as well as urban planning and design contribute to environmental stewardship, economic prosperity and social well-being. This integrated approach is essential for addressing global challenges such as climate change and resource depletion. This integration will be further explored in subsequent chapters throughout the year.

THOUGHT LEADERSHIP

REFERENCES Altman, M., 2012. Behavioural Economics for Dummies, 1st edition (3 February 2012). Published by: For Dummies. Faber, M., 1996. Ecological Economics: Concepts and Methods. Publisher: Edward Elgar, 1998. Constanza, R. 2020. Sustainable Wellbeing Futures: A Research and Action Agenda for Ecological Economics. Edward Elgar, Cheltenham, UK.

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THAT’S SUSTAINABILITY, FIRST. As the first to introduce a CO2 rating system across all products, AfriSam became the first cement manufacturer to achieve a 33% reduction in CO2 emissions since 1990. It’s just one of the firsts we’re proud to have laid the foundations for since starting our sustainability journey over three decades ago. As the industry’s leaders in sustainability, putting sustainability first has been, and always will be, second nature to us.

www.afrisam.com

Creating Concrete Possibilities

A gentler, greener alternative cremation…Aquamation AVBOB is proud to offer AVBOB policyholders and non-policyholders a more serene way of seeing off cycle of life. Aquamation provides families with the choice of a kinder, more respectful process, with substantially more of the beloved’s ashes returned to the family. And, for those who are concerned about the environmental

Aquamation offers… A natural biomimicry process, with no emission of harmful greenhouse gases or mercury

20% to 30% more ash remains returned to the family Aquamation: Gentler for your loved one… and our planet.

For more information contact the following branches: AVBOB Funeral Service Pretoria West 294 Es'kia Mphahlele Drive, Pretoria West, 0183 (012) 327 0320 AVBOB Maitland 451 Voortrekker Road, Maitland, Cape Town, 7405 (021) 593 8553

SOCIETY

AQUAMATION

An eco-friendly burial alternative Going green is an imperative for AVBOB as an evolving business. It aligns with the Group’s purpose and helps us contribute to a climate-friendly environment. Aquamation is an eco-friendly, water-based cremation option with a decreased carbon footprint.

VBOB launched the first Aquamation facility at its Maitland branch in Cape Town in 2019 followed by another facility at the Pretoria West branch in 2022, where both are available to private clients and policyholders. When AVBOB introduced Aquamation in South Africa, the organisation considered the rich and diverse range of cultures, different religious practices and beliefs, as well as social norms in the country. Providing a dignified send-off for loved ones has been part of AVBOB’s DNA for over 105 years, and it was central to our introduction of this innovation. Aquamation helps address the challenges faced with traditional burial: • L imited burial space. Municipal cemeteries have been running out of burial space in many of the major metropolitan areas in South Africa. • The burden of upkeep. Cemeteries require upkeep, which places the obligation of maintenance on communities. While flame-based cremation as a burial alternative doesn’t face the abovementioned challenges, it does have an environmental downside – its carbon footprint is sizable as it requires the burning of substantial amounts of fossil fuels. Cremation is energy intensive and causes air pollution, even with the most stringent emission regulations. Going green Aquamation or alkaline hydrolysis, also known as flameless cremation, water cremation and bio-cremation, has been in use in various applications for many years. AVBOB has, however, been at the forefront of developing this innovative and gentle procedure in South Africa. “We conducted intense research into Aquamation over the past six years, which included visits to facilities in the US and consultations with our partners, as well as strategic planning,” says Adriaan Bester, AVBOB General Manager: Corporate Affairs. The Aquamation process takes four to six hours to complete and eliminates the direct emission of greenhouse gases or mercury into the environment. It also ensures an energy saving of 90% compared to flame-based cremation. In other words, its carbon footprint is only a 10th of the carbon footprint of flame cremation. At the core of the process is water – a natural and essential part of life that makes up approximately 60% of our bodies. The Aquamation process uses only about 600 litres of water. This is equivalent to the amount of water used by a single household in a day. The process

renders all chemicals safe upon its completion, and at its end, a benign sterile liquid (containing no trace of DNA and RNA) remains, which is recycled back into the municipal wastewater system. The process The body is respectfully laid out in a receptacle that is placed in a sterile, stainless-steel chamber. A combination of moderate temperature water, alkalinity (not acid), and gentle water flow breaks down the soft tissue of the body to its basic building blocks. The alkali used in this case is potassium hydroxide salts. The bones (calcium) remain, which are powdered and presented to the family in an urn in the same manner as with flame-based cremation. Families receive 20% to 30% more ashes with Aquamation and can either keep or scatter the ashes as per the deceased’s wishes. About AVBOB Mutual Society The AVBOB Group comprises AVBOB Mutual Assurance Society, which provides insurance products, and two subsidiaries – AVBOB Funeral Service, which provides funeral services, and AVBOB Industries, which manufactures our coffins and funeral ware. A society on a mission to create shared value Being a mutual society means that AVBOB has no external shareholders but instead has members (our policyholders) who receive a share of AVBOB’s surplus profits. The foundation of our mutuality is to create and share value with our members. As a responsible corporate citizen, we proudly live our values for the benefit of our members and the communities in which they live, so that generations to come will also benefit from our legacy. Our mutual status drives our ethos, purpose, and competitive differentiation – it is the core of our existence. Call Centre: 0861 28 26 21 (24-hour funeral service assistance) General email address: info@avbob.co.za Complaints email address: complaints@avbob.co.za Website: www.avbob.co.za

WASTE

Technology trends driving sustainable polymers for a

CIRCULAR ECONOMY Creating a circular economy is an essential sustainability target for governments, brands, materials suppliers and the public. Key to pushing these sustainability efforts is the danger that growing global plastic consumption poses to the environment. BY IDTechEx

he OECD estimates global plastic consumption to double globally by 2050, and this plastic is not only overflowing in landfills but a significant portion is mismanaged and leaks into the environment. As such, the need for more sustainable polymer options has never been more evident, with four major groups driving this progression to greater sustainability across the polymer industry: governments, retailers or brands, nongovernmental organisations (NGOs) or similar activist groups and the public. Lobbying, investments, pledges, consumer spending habits and more all play a role, but it is regulation and how it is monitored and enforced that will be the most significant. The Global Plastics Treaty negotiations are ongoing, with adoption expected in mid-2025. This will change the landscape on an international and country level, increasing pressure on public and private stakeholders to act on pathways to address plastic pollution.

Regional and national announcements to curtail plastic usage and pollution are also stacking up, with additional bans on singleuse plastic being introduced in countries like the UK, Netherlands and elsewhere. Answering this demand for more sustainable plastics to support the circular economy requires innovations from all stakeholders in the polymer value chain, from the chemical suppliers to the end-users to the recyclers. For polymers, alternative feedstocks such as CO2 and other biobased inputs and production processes, like white biotechnology, are highlighted to showcase the diverse technical approaches to decreasing reliance on fossil fuel resources for plastic production. Just as important as the polymer feedstock is the application of these more sustainable polymers, especially in sectors of high plastic demand like packaging, which accounts for a third of annual plastic production. Lastly, the end-of-life recycling of these plastics, through both well-established mechanical recycling

WASTE and the more emerging advanced recycling, is critical to establishing a truly circular economy. Each of these innovative areas has a range of technical challenges, as well as challenges affecting economic viability; the success and outlook for each will depend on product properties, the “green premium”, and the ability to decouple pricing from incumbent raw materials, like crude oil.

BIOBASED FEEDSTOCKS

Shifting away from petroleum-derived feedstocks for plastic production towards biobased feedstocks is of the highest priority to make the polymer industry more sustainable. One of the most interesting feedstocks is carbon dioxide (CO2); the rise of carbon capture and utilisation (CCU) technologies would enable CO2 captured from industrial point sources or ambient air to be used as a carbon source for chemical and polymer production. These technologies have the potential to turn polymer production from a carbon-polluting industry into a carbon-negative industry that helps to decrease the impact of carbon dioxide emissions in the atmosphere. With governments forcing brands and retailers to have increasing amounts of biobased content in their products and bioplastics, manufacturers are scaling production rapidly to meet that demand, IDTechEx expects the bioplastic industry to grow by 10.1% CAGR over the coming decade. Alongside the more straightforward replacements to petroleum-derived commodity plastics in the bioplastics market are the innovative plastics looking to carve their niche, like polyhydroxyalkanoates (PHAs). One emerging area that looks to convert such biobased feedstocks into commodity chemicals and materials is that of white biotechnology, also called industrial biomanufacturing. White biotechnology is the industrial production and processing of chemicals, materials and energy using living cell factories, like bacteria, yeast and fungi. The value proposition of white biotechnology extends beyond its use of biobased feedstock, as biomanufacturing processes can use less energy, generate less and potentially create biodegradable products that are better for the environment. While this area isn’t necessarily “new”, with industrial production of lactic acid (used to produce biodegradable polymers like polylactic acid (PLA)) dating back decades, there is a recent influx of technology enablers, namely the tools and techniques offered

by synthetic biology, that is making the industrial production of commodity chemicals and precursors to plastics much more achievable than before.

SUSTAINABLE PACKAGING

The application of such sustainable polymers in end markets and the unique challenges faced by biobased competitors in these markets, like packaging, are also important to understand, as they give insight into the growth potential for different sustainable polymers. One such end-market is packaging, which is facing the brunt of increasing regulations on single-use plastics, prompting the growing usage of recycled and biobased plastics to increase the sustainability of packaging by brands. While this area is seeing significant progress in specific application areas like food service, personal care, home care, pet care, etc, there are still technical barriers to overcome to achieve 100% biobased packaging in most applications.

CHEMICAL RECYCLING

Recycling will always be a key part of making a circular plastics economy, as it ensures that any carbon captured by using the biobased feedstocks stays sequestered. Mechanical recycling in the short and medium-term will continue to be the main recycling process, but there has been and will continue to be significant industrial activity surrounding chemical recycling and dissolution of plastics. Advanced recycling addresses many of the shortcomings of mechanical recycling, like the degradation of plastic through recycling cycles, to produce recycled plastic that approaches the quality of virgin plastic.

OUTLOOK

The climate benefits of these sustainable solutions make them very interesting for future applications, though these technologies need to be assessed on a case-by-case basis to determine their sustainability benefits and economic viability. Still, the market potential for sustainable polymers is massive and has significant momentum behind it. As single-use plastic bans and carbon zero pledges grow in tandem with plastic consumption, the pressure is ever-increasing for materials producers and consumers to transition to more sustainable practices.

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The market potential for sustainable polymers is massive.

THOUGHT [ECO]NOMY

THE SOUTH AFRICAN PLASTICS PACT ANNUAL REPORT | GreenCape | [2023]

greeneconomy/report recycle

The South African Plastics Pact is a group of organisations working for a South Africa where plastic is valued, kept in circulation in our economy and doesn’t pollute the environment. Through this collaboration, Plastics Pacts and National Plastic Action Partnerships (NPAPs) from more than 20 countries are brought together to share learnings and best practices helping to accelerate efforts to tackle plastic pollution. WRAP, the Ellen Mac Arthur Fund’s Plastics Initiative and the World Economic Forum’s (WEF) Global Plastic Action Partnership (GPAP) are collaborating to drive global action towards a circular economy for plastics. This knowledge exchange network comes ahead of the incoming international legally binding instrument to end plastic pollution. WRAP worked with WWF, SAPRO and GreenCape to develop the South African Plastics Pact and since then has been providing strategic, technical and financial support to help deliver its targets and scale its impact.

SKILLS

Higher education institutions must take

THE SUSTAINABILITY LEAD in 2024 Environmental and water sustainability are among the most pressing challenges of our time. Access to quality water in SA has reached critical levels.* While Government must act decisively to turn around this state of affairs, higher education institutions must harness all available resources to address this dire situation.

“T

he impacts of climate change, pollution, overexploitation and degradation of natural resources threaten the wellbeing of current and future generations. To address these issues, we need not only technological innovations but also social and cultural transformations that foster a more sustainable and equitable world,” says Louise Wiseman, managing director at The Independent Institute of Education’s Varsity College, IIE MSA and Vega.

“Higher education institutions (HEIs) have a vital role and duty in ensuring environmental and water sustainability. They are the places where knowledge is created, disseminated and applied to solve real-world problems. They are also the places where future leaders, professionals and citizens are educated and empowered to take action for a better future,” she adds. At IIE MSA, several initiatives have been put in motion to contribute to the building of capacity to address water challenges in South Africa.

SKILLS Wiseman says HEIs can contribute to environmental and water sustainability in various ways, such as: • Developing and implementing sustainability policies and practices that reduce their environmental footprint and enhance their social responsibility. • Integrating sustainability education into their curricula, pedagogies and assessment methods. This can help students develop the competencies, attitudes and values that enable them to understand and address the complex and interrelated challenges of sustainability. • Conducting and supporting research and innovation that advance the scientific and technological solutions for environmental and water sustainability. • Fostering a culture of sustainability among their staff, students and alumni. This can include raising awareness, providing incentives, organising events and campaigns as well as facilitating dialogue and action on sustainability issues. “In 2024, we really need to understand that it’s an all-hands-on-deck scenario to ensure a sustainable water future in South Africa. We, as HEIs, have the potential and the responsibility to be the leaders and the catalysts in this regard, by aligning our vision, mission and values with the principles and goals of sustainable development, to make a positive and lasting difference in our country.” IIE MSA offers two water-related IIE postgraduate qualifications to address the demand for qualified water professionals: the Postgraduate Diploma in Water Management and the Masters in Integrated Water Management. These equip professionals with expertise and skills in different fields such as catchment management, water-sensitive urban design as well as water and sanitation. “The programmes take a holistic and interdisciplinary approach to managing water to equip students with a broad range of waterrelated skills, from project management of water-related infrastructure projects to the development of water-related policy, from climate change and water quality management to environmental education. Our graduates are well rounded because our programmes incorporate training in soft skills as well as policy development and analysis,” says Linda Downsborough, programme manager for Water and the Environment at the IIE MSA’s School of Engineering, Science and Health. “Well-educated and trained graduates are essential for the effective management of the water system as a whole. This may be through the design, delivery and maintenance of water infrastructure. However, importantly, there is also a need for the holistic management of water resources such as managing water quality in our rivers and wetlands in South Africa,” she adds.

In 2024, we really need to understand that it’s an all-hands-on-deckscenario to ensure a sustainable water future in South Africa. IIE MSA academic and researcher, Vanessa Stippel, says the institution is also contributing to policy development, research and innovation in the water industry. “Higher education institutions are hubs for research and innovation. Researchers can work on developing new technologies, materials and methodologies for water infrastructure construction, operation and maintenance,” says Stippel. “We are producing a diverse range of water-related qualifications that can ease the skills shortage, but unfortunately there remains a shortage of people taking up the qualifications to pursue careers in the water industry. We encourage those who are considering their future studies to consider a career in this vitally important field – a field which will ensure their life’s work amounts to more than just a job and an income, but a contribution to society that will last for generations to come.”

* The recently published Blue Drop Report found that almost half of the water in our drinking water systems is not safe for human consumption. The No Drop Report had similar findings with approximately 47% of municipal water classified as non-revenue water.

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THE GREENING WORLD OF WORK | GLOBAL INSIGHTS GREEN JOBS REPORT 2023 | Manpower Group | [2023] ESG has evolved from a corporate social responsibility and community value-add to a global standard of doing business. Growing regulation is also making ESG-focused workforce strategy increasingly important. While more than one-third (34%) of the world’s largest companies are now committed to net zero, nearly all (93%) will fail to achieve their goals if they don’t at least double the pace of emissions reduction by 2030. In a recent survey of US consumers, 75% of Gen Z respondents said sustainability was more important than brand when making a purchasing decision, and during a five-year period, average sales of products marketed with sustainability claims grew by 28%. In the same period, sales of comparable products with no sustainability claims grew by only 20%. A total of 67% of candidates of all ages are more willing to apply for jobs, and 68% are willing to accept jobs, with organisations they perceive as environmentally sustainable. While ESG strategies are a response to climate change and responsible operations, organisations can also clearly see the business opportunity, as the transition toward a more circular economy offers opportunities to increase business differentiation, reduce costs, improve brand reputation and drive job creation. The global green business transformation is one of the most exciting periods of innovation for the workforce since the Industrial Revolution. It will also be driven by growing demand from governments, investors, employees and consumers seeking bolder action and transparency to address climate change.

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