Greetings, and welcome to the latest edition of the Sustainability Handbook. As with every issue, we aim to shed light on the innovative strategies, best practices, and ongoing sustainability challenges faced by the various industries in our country. By highlighting both successes and areas for improvement, we hope to inspire dialogue, collaboration, and action.

From pioneering renewable energy initiatives to reimagining agricultural practices for greater ecological resilience; from designing sustainable infrastructure to ensuring equitable access to clean water and nutritious food; the breadth and depth of insights presented here underscore the interconnectedness of our sustainability challenges and the need for viable solutions.

Opening the handbook is thought leader Vishaal Lutchman, making a confident statement that the existing push towards structural reforms of the South African economy has not been met with widespread support. True or false? The rest of the content hopefully provides you with sufficient insight to draw your own educated conclusion.

We take a look at the new sustainable guidelines aimed at bolstering the clothing and textile sector, underscoring the importance of industry-wide commitments to eco-conscious practices. Our exploration extends to the role of nature-based solutions (NBS) in nurturing green buildings and infrastructure, amidst heightened recognition of their cost-effectiveness and sustainability benefits. Moreover, we scrutinize the trajectory of South Africa’s water sector, assessing its alignment with national developmental objectives through insights provided by the CEO of SA Water Chamber.

Does sustainable energy management refer to one facilitated by data and artificial intelligence, underscoring its pivotal role in shaping the future energy landscape? The South African Wind Energy Association (SAWEA) convenes its Annual General Meeting, heralding a transformative moment for wind energy’s trajectory by unveiling its inaugural annual report. A crucial consideration arises regarding job creation within transition plans, particularly poignant given South Africa’s staggering unemployment rates.

Furthermore, comprehension of the intricacies surrounding the carbon tax emerges as essential in navigating sustainable energy policies. In an attempt to address prevailing concerns regarding the economics of energy, David Nicolls meticulously dissects the viability of nuclear power stations, challenging perceptions regarding their purportedly exorbitant costs.

Turning to agriculture, we navigate the intricate dance between agricultural sustainability and the capricious nature of weather patterns across Africa, particularly their impact on grain harvest levels. Additionally, we explore the indispensable role of biodiversity and bees in fortifying resilient farming practices, alongside technological advancements underway aimed at biodiversity preservation harnessing the intrinsic value of insects. Moreover, waste management emerges as a critical aspect in bolstering agricultural sustainability efforts. Initiatives such as by Food & Trees not only address waste utilisation, but also emphasise community involvement, fostering a collaborative approach towards sustainable agricultural practices.

The surge of e-waste presents a pressing challenge, but upcycling holds significant potential as a key player in achieving zero waste to landfill. Extended Producer Responsibility (EPR) entails making businesses accountable for the waste they generate, including electronics manufacturing. Understanding how EPR impacts electronics manufacturing is crucial in addressing the growing issue of e-waste and advancing sustainable waste management practices.

We close the issue spotlight initiatives fostering gender equity and youth development within business realms, underlining the transformative potential of mentorship and inclusive programs.

Our contributors, ranging from industry experts to grassroots activists, offer diverse perspectives and expertise, enriching our understanding of sustainability in its many forms. We thank all those who contributed to this issue of the handbook and to all readers joining us in our mission to showcase practical solutions, innovative approaches, and bold ideas to tackle the complex sustainability challenges facing our country.

Progress? Practices and Perspectives

Fundamental economic considerations in motivation for structural reforms towards sustainability

Vishaal Lutchman

T his article postulates that the existing push towards structural reforms of the South African Economy has not been met with widespread support. The reforms we may be familiar with, relate firstly to transitioning the power ecosystem to ensure reliability and consistency that supports economic growth. Secondly, the increase in the capacity of broadband digital communications should reduce the costs to promote innovation and should enable economic growth. Third relates to water supply quality, availability and access to support health. Fourth relates to freight transport efficiency to improve competitiveness and reduce the cost of doing business. Lastly, the visa regime to improve tourism should promote access to the country and it should be done with ease.

Upon reflection, it can be argued that initiatives related to these 5 reforms are motivated by crises. In other words, it is when the situation has become so dire, that material change is required to give effect to transformation. In addition, it may be a cause for wonder that if there was no crisis, would such reforms happen as there may be no visible need. For example, if the destruction of Eskom did not happen, would such electricity reforms happen? If Machiavelli’s Theory (16th century) of politics is anything to go by then probably not. He theorises that if the initiative is not giving political currency to the politician, the politician has no will to make it happen as the needs of the people are of no priority. This phenomenon of structural reforms is therefore done under duress as can be seen with the SAA transaction and ESKOM “unbundling” for example. Furthermore, it suggests that such forces may continue to act against these reforms and motivate a cause for further dissension as can be seen in a high level of political fragmentation due to material disagreements in ideology. Should, this context be of sufficient substance, the form in which it plays out may be a cause for future unsustainability for politics and the relevant agencies concerned. It begs to ask the question; are we doing the right things, or do we disagree for the sake of grandstanding? Either way, I make an argument that it will be of no consequence.

The argument goes as follows. The new administration inherited a country with an existing economic configuration. It is here where the key drivers and enablers of the economic structure have failed and the motivations for reforms apply. This economic ecosystem was configured for a rationale that suited the previous regime with trading partners, supply contracts, volume guarantees, and system configurations (Transnet et al ) and enabled by entities such as Eskom et al. The current economic configuration has largely remained. It was not reasonable to assume that what was inherited would remain to provide support to all South Africans as the system was configured for a smaller population with different needs. Whilst there has been growth in such capacities to provide higher volumes throughputs, with a greater economic spread, it remained structurally the same. We may agree that maleficence has set us back on a few fronts it does not deter us from the development and execution of an economic strategy that would have seen us prosper. Assuming I make a relevant hypothesis, it points to, what is stopping us from doing so. The argument can be extended to many African geographies.

In attempting to provide insights into the phenomenon, I largely postulate that African countries continue to serve the major economies in the world. An analysis of the most successful economies is closely aligned with African trading partners which means Africa serves these economies. One may find the colonial legacy of the country, features in the formation of the economic configuration. Similarly, the continent also seems to be exposed by large superpowers looking to perpetuate the status quo and have the remaining resources exploited. This is done silently whilst the same geographies accuse Africa of not going green. This may be a hypocrisy that has seen itself become louder due to the negative impacts of climate change for example that is caused by the most industrialised nations of the world.

What is to be done in this scenario, irrespective of how the economic unsustainability has befallen the continent and now South Africa too? Whilst we get enthused by creating infrastructure to perpetuate the status quo, I wonder if we hardcode into greater unsustainability through infrastructure investment in much of the revenue-generating capital programs of the infrastructure SOCs. Without having a firm answer, I am inclined to suggest that whilst we go about our existing investment, we should fuse sustainability as a hard-core drive to diversify our economy. There is evidence of some economies that are moving aggressively away from a resource or mining bias and are proving to be successful at doing so.

I would start by saying that African leaders have a decision to make within their political groups to prove Machiavelli wrong. This means that they need to work on the following attributes to progress thinking, planning, and execution in new sustainable directions. This will entail that leaders who consider morality and, the common good over self-interest, resist the need to manipulate, build trust between politicians and communities, reduce the desire for revenge, build empathy capability and reduce the need to be aggressive amongst others. One may find humour in this comment as we may not know of any evidence to support such thinking, but we are for the first time contemplating the mortality of mankind as well, so drastic changes of which I suggest need to be fundamental and such leadership changes are one of them.

In addition, I argue if these attributes do not come to the fore, not much will change on the continent and the best chances we have will not materialise, as perpetuating the status quo is easiest whilst lamenting the historic injustices in mitigation of current leadership failures. The work in seeking out the mentioned attributes, allows leadership to look at the problem through a new lens. I think the solutions that we derive will be different. Infrastructure plans, economic inclusivity, education and skills, and inequality will start to become a phenomenon to be written in the history books of how things once were.

In summary, I see that plans to work as a collective African community may have new meaning to Pan Africanism which cannot seem to gain traction due to the existing arrangements. The trade which sits at 16% of inter-African trade must increase. Such a strategic decision will see for example more rail investments versus ports which perpetuate the leakage of our resources. We will travel in the continent to visit and appreciate cultures we have not known. I have intentionally extended the suggestion into the realm of altruism to give sight of what can be, as exploring ways to become sustainable in South Africa.

Textile and clothing sector to benefit from new sustainability guideline

Collette Vosloo and Lesego Matjila

T  he National Cleaner Production Centre South Africa (NCPC-SA) recently released a new guideline targeting the local textile and clothing sector. The document, South Africa Textile and Clothing Sector Guideline Development, provides a comprehensive framework for enhancing the competitiveness of the local industry, promoting sustainability, facilitating its growth and improving working conditions in the textile and clothing sector.

One of the main authors of the 54-page guideline, the NCPC-SA’s Alf Hartzenberg, explains, “The first objective of the guideline was to adopt circular reuse and recycling economic models. While the dominant trend is speed to market at the lowest cost, the preference towards sustainable practices and products is increasing with retailers and manufacturers appreciating the impact of their products, both socially and environmentally.

“Another objective was to promote a shift towards more local production, to create jobs and to build supply chain resilience. Major retailers have begun to emphasise transitioning towards sourcing from local manufacturers, switching to organic and better initiative cotton, for example, increasing recycled content and adopting measures to reduce hazardous chemical use in textiles.”

Backdrop

South Africa’s textile and clothing sector has a rich history with the potential for significant contribution to the country’s economy. The sector also plays a crucial role in promoting the country’s exports and developing its value chains.

Unfortunately, the textile and clothing sector’s contribution to national gross domestic product declined from 6% in 2005 to 3% in 2016 and 0.7% in 2021, as did formal employment from 143 000 to 81 000 over the same period.

The textile and clothing value chain contributed R70 billion to South Africa’s GDP in 2016 and within a global context, South Africa’s role is predominately that of an importer of textiles, clothing and footwear. It is also recognised as a producer of high-quality wool, mohair and cotton, which is mainly exported for processing.

The recognition of the sector’s ability to generate large-scale employment has made it a strategic priority for South Africa’s industrial growth and employment situation, leading to the launch of the South African Retail-Clothing, Textile, Footwear and Leather Value Chain Master Plan in 2019.

Globally, the current model of ‘fast fashion’ or ‘just-in-time delivery’ has steered the sector towards industrial and global mass production, enabling multinational companies to produce in one country and sell in another. This allows for the production and sale of very cheap clothes that can also respond to quick-changing trends, short life cycles and delivery times.

This model has resulted in the sector becoming one of the most polluting industries in the world, responsible for about 4%–10% of annual global greenhouse gas emissions. It is also wasteful from numerous perspectives, including during production and end of life, with an estimated 21 billion tons of textiles landfilled annually (6%) and 20% of global wastewater attributed to the sector. In addition, many clothes are not worn for their full lifespan and recycling rates for clothing are low, an estimated 13% globally, which confirms that the whole textiles business model is unsustainable and requires a significant shift to one that is low carbon, less resource depleting and less environmentally impactful.

Well-researched recommendations to empower industry

Several years in the making, the guideline elaborates on fibre-to-fibre recycling and the adoption of clothing and footwear leasing models. “This happens on a very small scale in South Africa. If we look at what is happening in the US and the EU markets which offer textile rental and hygiene services to the healthcare sector and hotels, restaurants as well as for industry and commerce, that is an opportunity that we need to look at in South Africa too, as well as increasing the second-hand clothing market,” Hartzenberg says.

He explains that it was important for the NCPC-SA team to understand what the global trends were and also to look at what was happening internally. “Having spent 34 years in the industry across the supply chain gave us a very good view and understanding of

some of the challenges and barriers faced. Our study comprised a desktop analysis, a survey questionnaire, and a stakeholder workshop, and from that stakeholder workshop, we were able to glean key things. It opened our eyes to the strategic approach and the strategic work that the government was already doing, which we validated.

“This guideline takes you through the whole process from textiles to clothing, from design development, production, marketing, sales, sustainability, right through to regulations and standards and emerging technologies and then provides you with a great ‘how to’ manual.

“It was not developed solely to influence policy decisions and for sector association leaders, it is really to enable and to provide some very good input to any stakeholder vested in the textile and clothing industry.”

While the sector certainly has its challenges, the guideline also features some of the positive milestones of the past eight years. “It is encouraging that despite all the challenges, we are seeing early signs of a possible rebound. The textile and clothing sector, according to 2022 projections, will grow at a rate of 3.2% with an expected revenue of R68 billion,” he adds.

The guideline spends a lot of time on emerging trends and technologies that can enhance productivity, efficiency and sustainability, as well as looking at how sustainable fashion and textiles can help to create further access to markets. It also makes recommendations about the technology policy and regulatory framework.

Hartzenberg concludes, “If South Africa is going to unlock the benefits of these emerging technologies, then the collaboration between the private sector, government, organised labour, and research institutions will be central in determining the successful long-term outcome.

“This guideline needs to be a living document, reviewed regularly by a representative stakeholder forum to give it meaning. Industry may find some excellent value, and if there’s something that needs discussion, feel free to contact the NCPC-SA.”

Incorporating NBS into Infrastructure Investment Plans

Llewellyn van Wyk

Introduction

The October 2023 report by the Intergovernmental Panel on Climate Change (IPCC) raised alarm through the global development sector when it noted that without a global transformation, the world would reach 1.5°C of warming in a little over a decade. It further noted that the policy and infrastructure investment decisions made now will determine whether we can limit global warming to 1.5°C or not. In short, to ensure we don’t exceed the 1.5°C limit, a quick and radical shift away from low-resilience, high-carbon infrastructure to low-carbon, high-resilience infrastructure is needed[i]. Due to infrastructure’s long-term nature, how we design infrastructure today will crucially determine our climate change pathways for generations to come.

This is not new: a report published ahead of the 2021 United Nations Climate Change Conference (COP26) called for a radical change in how governments plan, deliver, and manage infrastructure emphasising the neglected role infrastructure can play in combating climate change, mitigation, and adaptation efforts. The research, Infrastructure for Climate Action, co-published by UNOPS, the UN Environment Programme (UNEP) and the University of Oxford, looks in detail at the influence of infrastructure on climate action across energy, transport, water, solid waste, digital communications, and buildings sectors. The findings highlight that infrastructure is responsible for 79 per cent of all greenhouse gas emissions, as well as 88 per cent of all adaptation costs[ii].

In short, infrastructure’s impact on climate change is impactful and multifaceted, and addressing these challenges requires innovative solutions and a commitment to sustainability.

A Role for Nature-based Solutions (NBS)

Nature-based solutions (NBS) refer to approaches that utilize nature or natural processes to address societal challenges, particularly those related to environmental sustainability, climate change mitigation, and adaptation. These solutions harness the inherent capabilities of ecosystems to provide benefits for both people and the environment. Examples include reforestation to sequester carbon, green infrastructure for stormwater management, restoring wetlands for flood control, and using natural habitats to enhance biodiversity and ecosystem services.

NBS is gaining attention as cost-effective and sustainable alternatives to conventional infrastructure and technological solutions. They offer multiple co-benefits such as enhancing biodiversity, improving air and water quality, providing recreational opportunities, and enhancing resilience to climate change impacts.

The Nature-based Solutions/Conservation Nexus

It is important to distinguish between NBS and conservation.

Conservation is the protection and preservation of the planet’s biological diversity and natural resources to secure their sustainability. Conservation includes protecting plant and animal species, habitats, ecosystems, and important ecological services against threats. Conservation can also involve setting aside parks and preserves, ensuring that species have the habitat they need to survive, or implementing laws to protect endangered plants and animals.

Nature-based solutions, on the other hand, encompass a wide range of approaches—from the restoration of habitats to water resource management, disaster risk reduction, and green infrastructure—to address societal problems. Nature-based solutions are based on the notion that when ecosystems are healthy and well-managed, they provide essential benefits and services to people, such as reducing greenhouse gas emissions, securing safe water resources, making air safer to breathe, or providing increased food security[iii].

NBS and Infrastructure Investment

Nature-based solutions (NBS) and infrastructure investment are interconnected in several ways, especially in the context of addressing environmental challenges and promoting sustainable development. Infrastructure projects that incorporate NBS are typically referred to as one of the following[iv]:

• • Nature-based infrastructure
  
• • Green or green/grey infrastructure
  
• • Blue of blue-green infrastructure
  
• • Hybrid infrastructure
  
• • Nature infrastructure
  

Benefits of NBS

NBS offer the following range of benefits:

Green Infrastructure: NBS often involves the implementation of green infrastructure, which uses natural systems or processes to provide various ecosystem services. Examples include green roofs, permeable pavements, and constructed wetlands. Investing in green infrastructure projects can help mitigate the impacts of climate change, reduce urban heat island effects, manage stormwater runoff, and enhance biodiversity.

Resilience and Adaptation: Infrastructure investments that incorporate nature-based solutions can enhance resilience to climate change impacts and natural disasters. As an example, restoring coastal mangroves can provide natural buffers against storm surges and coastal erosion, reducing the need for expensive engineered defences like seawalls.

Cost-effectiveness: Nature-based solutions often offer cost-effective alternatives to traditional “grey” infrastructure. NBS can be up to 50 per cent less expensive than human-caused infrastructure and provide up to 28 per cent added value through benefits like decarbonisation and climate resilience[v]. Despite these advantages, less than 0.3 per cent of current urban infrastructure spending goes toward NBS[vi]. It is estimated that NBS can provide up to 37 per cent of the emissions reductions needed to achieve the targets of the Paris Agreement[vii]. Investing in ecosystem restoration or conservation can provide multiple benefits, such as flood control, water purification, and carbon sequestration, at lower costs compared to building and maintaining engineered structures.

Economic Opportunities: Infrastructure investments in NBS can also create economic opportunities, such as job creation in restoration projects, eco-tourism, and sustainable agriculture. These investments can contribute to local economies while promoting environmental sustainability.

Long-term Sustainability: Integrating NBS into infrastructure planning and investment can promote long-term sustainability by considering the ecological, social, and economic aspects of development. This approach helps to minimize negative environmental impacts, enhance ecosystem services, and support the well-being of communities over the long term.

Overall, integrating nature-based solutions into infrastructure investment can help address pressing environmental challenges, promote resilience, and contribute to sustainable development goals. By recognizing the value of nature in infrastructure planning and decision-making, societies can build more resilient, cost-effective, and sustainable infrastructure systems.

Taxonomy of NBS

Nature-based solutions (NBS) can be integrated into infrastructure investments in various sectors to enhance sustainability, resilience, and cost-effectiveness. NBS within the context of infrastructure can be classified as follows:

Green Roofs and Walls: Incorporating green roofs and walls into building design can help manage stormwater runoff, reduce energy consumption for heating and cooling, improve air quality, and enhance urban biodiversity.

Permeable Pavements: Using permeable pavements in roads, parking lots, and sidewalks allows rainwater to infiltrate into the ground, reducing surface runoff and the risk of flooding while replenishing groundwater supplies.

Constructed Wetlands: Constructing wetlands for wastewater treatment can provide a natural and cost-effective alternative to traditional treatment plants. Wetlands help remove pollutants, nutrients, and pathogens from wastewater while providing habitat for wildlife.

Living Shorelines: Using natural materials like oyster reefs, mangroves, and salt marshes to stabilize coastlines helps prevent erosion, buffer against storm surges, and protect coastal communities from sea-level rise and extreme weather events.

Reforestation and Afforestation: Planting trees along transportation corridors, such as highways and railways, helps mitigate air pollution, reduce noise pollution, enhance aesthetics, and provide habitat connectivity for wildlife.

Natural Floodplain Restoration: Restoring natural floodplains and reconnecting rivers to their floodplains can reduce flood risks, improve water quality, and enhance ecosystem services while providing recreational opportunities and wildlife habitat.

Green Infrastructure for Stormwater Management: Implementing green infrastructure practices, such as bioswales, rain gardens, permeable pavements, and constructed wetlands, helps absorb and filter stormwater runoff, reducing the burden on conventional drainage systems, mitigating flooding, and improving water quality.

Green Infrastructure for Transportation: Incorporating green infrastructure elements like vegetated medians, roadside vegetation, and wildlife crossings into transportation projects promotes biodiversity, reduces habitat fragmentation, and enhances ecosystem connectivity.

Green Spaces and Urban Parks: Increasing the number and quality of parks, green spaces, and urban forests within cities can provide numerous benefits, including improved air quality, reduced urban heat island effect, enhanced biodiversity, recreational opportunities, and mental well-being for residents.

Green Infrastructure Networks: Establishing interconnected networks of green infrastructure, including green corridors, wildlife habitats, and urban greenways, facilitates biodiversity conservation, enhances ecosystem connectivity, promotes wildlife movement, and provides recreational opportunities for residents.

Urban Agriculture and Community Gardens: Encouraging urban agriculture initiatives, such as community gardens, rooftop gardens, and urban farms, not only provides fresh produce for residents but also promotes food security, reduces food miles, improves social cohesion, and enhances urban aesthetics.

Street Trees and Urban Forestry: Planting trees along streets, sidewalks, and public spaces helps mitigate air pollution, provide shade, reduce noise pollution, increase property values, and create habitats for urban wildlife.

Natural Playgrounds and Sustainable Design: Designing urban spaces with natural materials and features, such as natural playgrounds, green alleys, and urban wetlands, promotes active living, childhood development, and environmental education while enhancing ecosystem services and biodiversity.

Brownfield Remediation and Urban Regeneration: Converting derelict or contaminated sites into green spaces, parks, and natural habitats through brownfield remediation and urban regeneration projects revitalizes neighbourhoods, improves property values, enhances community well-being, and restores ecosystem functions.

Conclusion

Implementing nature-based solutions requires interdisciplinary collaboration among policymakers, scientists, businesses, and communities to integrate ecological principles into decision-making processes and land management practices. As climate change and environmental degradation continue to pose significant challenges, NBS offer promising pathways towards building more resilient and sustainable societies.

By integrating NBS into urban planning, design, and development processes, cities can create more sustainable, resilient, and inclusive urban environments that benefit both people and nature. These approaches not only address pressing environmental challenges but also improve the quality of life for urban residents now and in the future.

References

• • [i] WEF 2018. “How sustainable infrastructure can help us fight climate change.” Retrieved from: https://www.weforum.org/agenda/2018/11/building-sustainable-infrastructure-matters-climate-change/ Accessed: Feb 23, 2024.
  
• • [ii] Thacker S., Adshead D., Fantini C., Palmer R., Ghosal R., Adeoti T., Morgan G., and Stratton-Short S., 2021. Infrastructure for climate action. UNOPS, Copenhagen, Denmark.
  
• • [iii] World Wildlife 2024. “What is nature-based solutions and how can they help us address the climate crisis?” Retrieved from: https://www.worldwildlife.org/stories/what-are-nature-based-solutions-and-how-can-they-help-us-address-the-climate-crisis Accessed Feb 23, 2024.
  
• • [iv] De Vera, A. 2023. “What are nature-based solutions for infrastructure?” Global Infrastructure Hub, 27 November 2023. Retrieved from: https://www.gihub.org/articles/what-are-nature-based-solutions-for-infrastructure/ Accessed: February 27, 2024.
  
• • [v] WEF 2023. “Nature-based solutions in cities are the future of the fight against climate change.” Here’s how to fund them.” World Economic Forum, January 17, 2023. Retrieved from: https://www.weforum.org/agenda/2023/01/climate-change-cities-nature-based-solutions-wef23/ Accessed: February 27, 2024.
  
• • [vi] WEF 2023. “Nature-based solutions in cities are the future of the fight against climate change.” Here’s how to fund them.” World Economic Forum, January 17, 2023. Retrieved from: https://www.weforum.org/agenda/2023/01/climate-change-cities-nature-based-solutions-wef23/ Accessed: February 27, 2024.
  
• • [vii] De Vera, A. 2023. “What are nature-based solutions for infrastructure?” Global Infrastructure Hub, 27 November 2023. Retrieved from: https://www.gihub.org/articles/what-are-nature-based-solutions-for-infrastructure/ Accessed: February 27, 2024.
  

Overview of the National Environmental Laws Amendment Act 2 of 2022

Francois Joubert, Julia Rushton and Robin Van Wyk, Fasken Environmental team

On 24 June 2022, the much-anticipated National Environmental Laws Amendment Act 2 of 2022 (“NEMLAA”) was enacted after more than 5 years since it was introduced as a Bill to the National Assembly. Although the NEMLAA had been published, the date of commencement was still to be proclaimed and many legal practitioners were left wondering when or if the provisions would come into effect.

On 30 June 2023, the answer to those questions finally came as the majority of the provisions contained in the NEMLAA were proclaimed and came into effect.

The changes introduced by the NEMLAA should help to bolster South Africa’s environmental enforcement provisions and discourage non-compliance with environmental laws.

The Fasken Environmental and Resources team outline some of the key changes below:

1. Amplified rectification provisions

In instances where a person has commenced with a listed or specified activity without an environmental authorisation (“EA”) in terms of NEMA or commenced, undertaken or conducted a waste management activity without a waste management licence (“WML”) in terms of NEMWA, that person may submit an application to the competent authority in terms of section 24G of NEMA which, if successful, will allow that person to continue lawfully with the particular activity. This is why section 24G of NEMA is often referred to as the “rectification provision”.

Prior to the NEMLAA, competent authorities were given an option to decide whether or not to direct an applicant of a section 24G application to take certain steps, including ceasing the activity. This meant that applicants could carry on performing the particular activity even though they had unlawfully commenced with such activity.

Under the NEMLAA, however, competent authorities now have an obligation to direct an applicant to take certain measures, including to:

• • immediately cease the activity (except if there are reasonable grounds to believe the cessation will result in serious harm to the environment),
  
• • investigate, evaluate and assess the impact of the activity on the environment,
  
• • remedy any adverse effects of the activity on the environment,
  
• • cease, modify or control any act, activity, process or omission causing pollution or environmental degradation,
  
• • contain or prevent the movement of pollution or degradation of the environment, and
  
• • eliminate any source of pollution or degradation.
  

The measures listed above will accordingly no longer be at the discretion of the competent authority.

The competent authorities will also be required to direct such a person to undertake public participation which is appropriate to bring the unlawful commencement, undertaking or conducting of a listed, specified or waste management activity to the attention of interested and affected parties, and to provide them with a reasonable opportunity to comment on the application.

NEMLAA has also widened the categories of people that may submit section 24G rectification applications to allow successors in title and persons in control of land on which a person has unlawfully commenced with an activity without an EA or a WML to submit a section 24G rectification application.

Another important change brought about by the NEMLAA has been to increase the maximum administrative fine from R5 million to R10 million. This should help to deter people from commencing listed activities without the necessary EA or WML.

Similar changes have also been made to the section 22A rectification provision in NEMAQA.

2. Financial provision for remediation of environmental damage

One of the most notable changes brought about by the NEMLAA is the introduction of the requirement to provide financial provision for remediation of environmental damage. Up until now, the requirement to provide financial provision only applied to applicants for an EA relating to prospecting, exploration, mining or production activities and applicants for and holders of a right or permit in terms of the Mineral and Petroleum Resources Development Act 28 of 2002 (“MPRDA”) issued after the coming into effect of the Financial Provisioning Regulations, 2015. The NEMLAA, however, has extended the financial provision requirement to specific instances prescribed by the Minister of Forestry, Fisheries and the Environment (the “Minister”), or an MEC in concurrence with the Minister.

If the Minister, or an MEC in concurrence with the Minister, has prescribed specific activities that require financial provision, an applicant must, before the competent authority issues an EA for such an activity, determine the financial provision which is required for undertaking progressive rehabilitation, decommissioning, closure and post-closure activities, including the pumping and treatment of extraneous and polluted water.

The financial provision requirements do not only apply to applicants for new EAs, but may, where so prescribed by the Minister, or an MEC in concurrence with the Minister, also be applicable to holders of EAs or holders of rights, permits or old order rights (i.e. an old order mining right, old order prospecting right or unused old order right) in terms of the MPRDA. Applicants for EAs and the holders of EAs or rights, permits or old order rights in terms of the MPRDA, where prescribed, may accordingly be required to provide financial provision for progressive rehabilitation, mitigation, decommissioning, closure and post-closure activities, including the pumping and treatment of extraneous and polluted water, where relevant, to ensure the mitigation and rehabilitation of adverse environmental impacts, including latent environmental impacts.

This provision will have a major impact on other extractive or industrial operations as companies may now be required to provide sufficient financial provision for activities other than mining-related activities.

The financial provisioning vehicles which must be used when providing the financial provision now include a closure rehabilitation company, a parent company guarantee and an affiliate company guarantee in addition to the following financial provisioning vehicles already recognised by NEMA: insurance, a financial guarantee, a trust fund or cash deposited into the relevant financial provision account.

It is also important to note that if a person fails to comply with the financial provisioning requirements for the remediation of environmental damage or mining-related activities, it will be regarded as an offence under NEMA and if convicted, the person will be liable to a maximum fine of R10 million or imprisonment for a maximum period of 10 years or to both such fine and such imprisonment.

3. Municipal managers may issue section 28 duty of care directives

The “duty of care” provision under section 28 of NEMA provides that every person who causes, has caused or may cause significant pollution or degradation of the environment must take reasonable measures to prevent such pollution or degradation from occurring, continuing or recurring, or, in so far as such harm to the environment is authorised by law or cannot reasonably be avoided or stopped, to minimise and rectify such pollution or degradation of the environment.

If a person breaches the duty of care provision set out in section 28 of NEMA, the provincial and national authorities may issue a directive instructing the person to take certain actions including ceasing the activity, evaluating and reporting on the impact and taking specific measures. These enforcement powers have been expanded under NEMLAA as municipal managers of municipalities may now also issue section 28 directives and have been empowered to delegate this enforcement power to municipal officials. This will hopefully result in increased environmental administrative enforcement action.

Although the majority of the provisions in the NEMLAA came into effect on 30 June 2023, the following provisions were excluded from the proclamation: sections 11, 35(a), 57, 60, 61(c), 61(j), 61(k), 62, 63, 64, 65, 66, 72, 76, 77, 86, 87 and 88.

This means that until the abovementioned currently excluded sections come into effect:

• • licensing authorities under the NEMAQA will not yet be authorised to revoke or suspend an atmospheric emission licence if the licensing authority has evidence that the licence holder has contravened a provision of NEMAQA or a condition of the licence and such contravention may have, or is having, a significant detrimental effect on the environment, including health impacts.
  
• • a person may not yet appeal a decision made by the licensing authority contemplated in sections 36(1) or 47A of NEMAQA, in the case of municipalities, to the municipal council;
  
• • Chapter 9 of the National Environmental Management: Integrated Coastal Management Act 24 of 2008 which deals with appeals still remains in force;
  
• • he definition of “waste” in NEMWA still remains unchanged;
  
• • residue stockpiles and deposits will not yet be regulated by NEMA but will continue to be regulated under the NEMWA which means that they are still regarded as waste and require a WML; and
  
• • the changes proposed to the provisions regarding the Waste Management Bureau and the Board responsible for governing the Waste Management Bureau will not yet be made to NEMWA.
  
• • Should you have any queries or concerns regarding the impacts of the NEMLAA, please do not hesitate to contact us.
  

Francois Joubert | Partner | Environmental and Resources | Fasken -
fjoubert@fasken.com

About Fasken

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Is the water sector moving in the direction required in South Africa

Benoit Le Roy, CEO, SA Water Chamber

The South African Water and Sanitation Master Plan was published in 2018 and it was planned to roll out from 2020 to 2030 with a price tag upwards of R900 billion. We are now 40% of the way down the timeline with ever increasing water shedding, deteriorating Blue, Green and No Drop reports showing a rapid decline in water security.

So, it is more than obvious that not only have we not embarked on the master plan in earnest, but we are also actually degenerating at an increasing rate as witnessed again in February and March this year in eThekwini and Joburg with serious water outages and consequent demonstrations. We therefore cannot be moving in the right direction as claimed and need to seriously ask ourselves what it’s going to take to arrest the collapse and then reinstate water security using the master plan and good governance principals.

Let’s have a look at the lowlights for the past few months that reinforce this tragic outlook and stop beating about the “politically correct” bush as it’s getting us nowhere, we have to all work together and start implementing what we agreed upon in the master plan.

Ethekwini

The ongoing water outages in Ethekwini have raised the ire of the metro’s citizens with major demonstrations taking place and with the national leadership for the Department of Water and Sanitation holding an emergency summit with stakeholders to try and defuse the situation. The big question here is what are the real issues and why the ongoing water outages with some reporting very little to zero water from their taps for the past 190 days in the northern parts.

The overt support given by the minister of DWS, Department of Water and Sanitation, to Ethekwini underpins the seriousness of the situation and also that its generally acknowledged at national government level that this metro has failed and is not turning the corner, can it turn the corner? I don’t believe it can turn the corner immediately as promised by the city leadership and national minister.

The reason I say this is that it has taken at least three decades to let the assets wither away and it will take at least a decade to reinstate them if governance levels are reformed and skills brought back en-masse and the private sector agrees to co-invest, all on the back of sufficient consumers to pay for the massive increased costs. The irony in water distribution systems is that they have a finite life of 50 to 70 years, asbestos cement and plastic pipes with the former massively deployed in SA until its banning in 2008. The massive expansion of Durban North was post 1945, so around 75 years ago.

The city of Durban started replacing its end of life asbestos cement water distribution pipes in the 1990’s in anticipation of its end of life from around 1995 onwards. This is a multi-year program with valves of all sorts also being either reconditioned and/or replaced. It is common knowledge that from around 2002 free basic water was announced making water recoveries even more problematic and causing the reduction of water asset maintenance programs to be cut back. This phenomenon manifested itself nationally with even the Western Cape at the time visibly falling behind. This is why we have to restart the water distribution asset rejuvenation program in the entire SA where the eight metros alone would have in excess of R100 billion of water distribution assets with COJ itself reporting it required R25bn to rejuvenate its water distribution assets.

The city of Joburg, who is owed almost R30 billion for water services, currently spends just over R1bn per annum on its water and sanitation assets and hence will never catch up at this rate, none of metros will except for the COCT that has markedly increased its capex program for water in the past decade, currently budgeting more than Ethekwini and Joburg combined.

Back to eThekwini and why it cannot recover its water security overnight? The metro has reported many times that it requires up to R20bn to reinstate its water and sanitation assets and has for the past few years been unable to raise that quantum. Should we lose hope, definitely not as the high profile of the collapse of water services in SA’s large metro’s, apart for Cape Town, underpinned by national government’s visible support is doing a lot to ensure that this issue eventually gets priority.

DWS has set up the Water Partnership Office, WPO, to programmatically fund and programmatically drive the implementation of water asset restitution using a blended finance model that is intended to entice the private sector in investing and implementing. The WPO has also received grant funding to assist in local government in project preparation costs and resourcing in a programmatic philosophy that bodes well for municipalities.

Johannesburg

So far this year the ongoing trend from 2023 of massive regular water outages continues unabated. Whilst the metro has not suffered the floods of eThekwini that exposed vulnerable outdated water and sanitation systems, it also cannot offer the required water security where NRW, Non-Revenue Water, is reported as a massive 46%. Even with regular outages due to burst pipes, the legislated storage time of 48 Hours would ensure that systems would remain pressurised during most of the pipe repairs, however this is not happening as the population has grown from around R2,2 million in 1994 to 6,3 million in in 2024 which is nearly a 300% increase. Water storage and delivery systems have obviously not kept pace and now are extremely vulnerable to even minor outages.

It is patently clear that the city of Joburg has not for the past three decades invested adequately in growth and the asset maintenance and replacement programs required. The city recently stated that it needed to replace more than 50% of its R113bn in water assets, we estimate in rough numbers that 25% of this is water distribution systems, so a massive R25bn is required. This is where it all stops as no visible next steps have been taken to demonstrably resolve the patently clear water insecurity of our commercial capital.

I write this article with many parts of Joburg suffering a massive water outage for most of the working week with the Eikenhof pump station, a Rand Water asset, stranded without electricity due to a Joburg City Power outage topped by another massive outage in Sandton also for days due to another maintenance outage.

Hartebeespoort

The unabated discharge of inadequately treated sewage from the Gauteng metros has resulted in serious water hyacinth propagation in the Hartebeespoort dam leading to serious depletion of oxygen levels and covering large parts of the dam making its recreational use impossible. The downstream impact on users that are many towns, mines and agriculture is serious and has to be remedied before the situation results into a totally unusable resource. The economic impact of this ongoing disaster is serious and surely must be resolved. Why are municipalities not able to comply to legislation that caters for fines and/or imprisonment? The lack of accountability is deafening.

Vaal River

The water lettuce and hyacinth invasion has led to the mandated government departments authorising the spraying of glyphosate that is contentious at best as those for and against all have valid arguments to an extent. The real issue and root causes however are still glossed over although starting to be acknowledged by government, we need to address the root causes, over a decade and half old and worsening daily, whilst finding the most appropriate ways to try and manage the biomass until the nutrients are totally removed. Again, the lack of accountability is deafening.

Drinking water quality

The WRC in collaboration with SALGA conducted a survey to test the waters so to speak with consumers to establish user perceptions with municipal water services. Reportedly, in 2023, 88% of consumers regarding drinking water as safe, that had now decreased to 79% in urban areas and 64% in rural areas showing a clear loss of trust trend in local government’s ability to provide safe water.

So, is the water sector moving in the right direction? It clearly is not and is starting to affect all levels of the economy and clearly water insecurity is an economic disabler no different to the energy and logistics hiatus currently biting hard into our economy. It is anticipated that all three Gauteng metros have the same issues as eThekwini and are following at an alarming pace. These four metros are the heart of the national economy and simply cannot afford to continue like this without serious interventions for all of our sakes.

The Case for Sustainable Energy Management Through Data and AI

Priaash Ramadeen, CEO, The Awareness Company

In an era where climate change looms large over our collective future, the quest for sustainable solutions has never been more critical. Among these, sustainable energy management in buildings emerges not just as a strategy but as a necessity, pivotal for slashing greenhouse gas emissions, curbing operational costs, and paving the way for a healthier planet. With buildings accounting for approximately 40% of global energy usage and 33% of greenhouse gas emissions, the spotlight has turned towards them in the sustainability arena.

Through the lens of two compelling case studies — a forward-thinking property management company and a pioneering hospital group in Johannesburg, South Africa — this exploration delves into how innovative energy management practices can morph into substantial environmental stewardship and financial savings.

First, Let’s Dive into the Challenges…

Large buildings are crucial in our fight for a sustainable future, but they face several big hurdles. Here’s what they’re up against:

• • Controlling Utility Costs: The relentless demand for energy and water in large buildings leads to significant utility costs. Developing strategies to manage and reduce these costs remains a challenge.
  
• • Compliance with Regulations: The landscape of environmental, social, and governance (ESG) regulations is both vast and complex. Navigating this landscape to ensure compliance adds layers of difficulty.
  
• • Overcoming Operational Inefficiencies: Traditional operational methods often fail to address the nuanced needs of modern buildings, resulting in inefficiencies and waste.
  
• • Accessing Real-Time Data: A crucial challenge is the lack of immediate, actionable data on energy and water usage, hindering efforts to identify inefficiencies and implement effective conservation measures.
  
• • Demonstrating Sustainability: Transparently showcasing sustainability efforts requires robust tracking and reporting mechanisms. This transparency is essential yet challenging to achieve.
  
• • Integrating Sustainability with Business Goals: Aligning the operational demands and business objectives of a building with sustainability initiatives presents a complex challenge, requiring strategic planning and execution.
  
• • Utilising Data for Operational Optimization: The potential of data to drive operational improvements is vast, yet leveraging this data effectively for energy efficiency and maintenance optimization is a significant challenge.
  
• • Ensuring Data Accuracy: With decisions heavily reliant on data, ensuring the accuracy and reliability of this data is paramount but challenging, given the variety and volume of data involved.
  
• • Efficiency in Facility Operations: Achieving energy and water efficiency while maintaining optimal facility operations is a balancing act, complicated by the need for real-time monitoring and proactive maintenance.
  
• • Centralised Control of Building Systems: Establishing centralised control over the myriad of building systems to streamline operations and facilitate rapid issue resolution is an operational challenge.
  
• • Rapid Resolution of Issues: Ensuring the swift resolution of facility issues to maintain safety and efficiency, while minimising disruption, requires effective early warning systems and real-time alerts.
  
• • Effective Stakeholder Communication: Clearly and effectively communicating technical performance and sustainability achievements to stakeholders is essential but challenging, necessitating the use of accessible visualisations and clear messaging.
  

Addressing these challenges is critical for the transformation of large buildings into models of sustainability and efficiency, underscoring the need for innovative solutions and strategic approaches.

Innovative Journeys to Sustainability

Property Management:

Imagine a world where buildings not only coexist with the environment but also nurture it. This vision was brought to life by a South African property management company that embraced a holistic energy management ethos across its portfolio. By retrofitting ageing structures with the latest in energy-efficient technology, fine-tuning operational methodologies, and weaving tenants into the fabric of sustainability initiatives, the company charted a course towards remarkable energy conservation.

The payoff was twofold: a tangible dip in energy consumption and carbon emissions, coupled with appreciable cost savings.

Strategic Implementations:

• • Centralised Energy and Water Management: Utilised AI-powered software to centralise data, optimising across the portfolio.
  
• • Benchmarking and Advanced Analytics: Properties benchmarked for efficiency, sharing best practices to lift all assets’ performance.
  
• • Equipment and Facility Monitoring: Integrated IoT devices for real-time monitoring, supporting proactive maintenance decisions.
  
• • Data-Driven Decision Making: Provided facility managers with immediate insights into energy and water use, driving swift action on inefficiencies.
  
• • Lifecycle Asset Management: Insights extended the life of critical equipment, reducing capital expenditures.
  

Impactful Results:
Achieved significant energy cost and water usage reductions.

• • Decreased carbon footprint and contributed to environmental sustainability through reduced emissions.
  
• • Reduced equipment downtime by 40%, optimising maintenance and operational efficiency.
  
• • Strengthened market position through improved sustainability metrics.
  

Healthcare:

Next we go to a national hospital group who embarked on a groundbreaking journey using the same data-driven utility management system. Armed with smart metres and spanning 19 facilities, this system became the linchpin for energy and water management, enabling real-time oversight, sophisticated data analytics, and a leap in engagement and operational efficiency.

The initiative was not just about technological prowess; it was a cultural shift, mobilising staff towards energy conservation. The outcome was staggering: monthly savings of R950k, a testament to the power of innovation and collective action in fostering a culture of sustainability and efficiency.

Strategic Implementations:

• • Enhanced Real-Time Monitoring: Deployed continuous real-time monitoring across all facilities, offering a comprehensive view of energy and water usage, leading to optimised utility costs.
  
• • Data-Driven Operational Excellence: Utilised advanced analytics for detailed consumption insights, empowering management with the information needed to make informed decisions on utility management and sustainability investments.
  
• • Staff Engagement and Cultural Shift: Increased awareness and visualised consumption data through dashboard screens, fostering a strong culture of conservation among staff.
  

Impactful Outcomes:

• • Achieved a significant reduction of 20% in energy consumption, translating to monthly savings of R950k and annual savings of R11.4 million.
  

The Pillars of Sustainable Transformation

These narratives underscore the multifaceted approach needed to turn buildings into bastions of sustainability and climate change warriors. The journey is underpinned by several key pillars:

1. 1. Technological Innovation: The heart of energy management, where smart metres and management systems offer a granular view of energy use, pinpointing inefficiencies and optimising consumption.
   
2. 2. Operational Efficiency: Beyond gadgets and gizmos, the essence of energy management lies in operational practices — from maintenance routines to adapting operations based on real-time occupancy and usage insights.
   
3. 3. Stakeholder Engagement: The human element — engaging occupants and staff through awareness, incentives, and transparent communication about the impacts and benefits of energy conservation.
   
4. 4. Financial Viability and ROI: The compelling economic narrative — where reduced utility expenses bolster the bottom line, and investments in energy efficiency pay dividends in savings and enhanced property values.
   
5. 5. Climate Change Mitigation: The ultimate goal — reducing energy consumption and greenhouse gas emissions, aligning with global endeavours to curb global warming and meet sustainability benchmarks.
   

Building Green Giants of the Future

To navigate the complexities of achieving sustainable buildings, the embrace of emerging and future technologies is crucial. Current innovations such as artificial intelligence (AI) and machine learning are revolutionising energy management, enabling predictive maintenance and optimising energy use in real-time. The Awareness Company’s sustainability software, HYDRA, as seen in the case studies outlined above, is one such innovation.

Advanced materials are being developed for better insulation and solar energy capture, significantly reducing a building’s carbon footprint. The integration of smart grids facilitates the use of renewable energy sources, ensuring buildings can operate more sustainably.

Looking to the future, technologies like 3D printing promise to reduce construction waste and enable the creation of more energy-efficient building designs. The Internet of Things (IoT) is set to offer even smarter building management systems, controlling lighting, heating, and cooling in the most efficient ways possible based on real-time data. Furthermore, green infrastructure, including vertical gardens and green roofs, not only enhances building aesthetics but also contributes to cooling and rainwater absorption, mitigating urban heat island effects.

Encouragingly, with the acceleration of technology, growing awareness of sustainability issues, and more stringent environmental regulations, the adoption of these technologies in buildings is set to become more widespread. This progress promises not only to make sustainable buildings more achievable but also to extend their benefits beyond environmental impact to include significant societal and economic gains.

As we forge ahead, the amalgamation of innovative technologies, operational excellence, and comprehensive stakeholder engagement will be instrumental in steering the built environment towards a more sustainable, climate-resilient future.

Contact us:
Priaash Ramadeen, CEO, The Awareness Company
+27 084 554 5598 | priaash@awarenesscompany.co.za | awarenesscompany.co.za

The Southern African Energy Efficiency Confederation 2024.

Helen Couvaras

We are nearing the end of the first quarter of the 21st Century and it has been tumultuous, from all aspects, wars waging, refugees, a pandemic, hunger, and of course the changing climate and variations surrounding us. How are we all coping with these abominable events one may ask? It is up to Governments and Leaders to solve many of these problems, but when it comes to sustainable growth and saving our earth[F1] this is one of the major priorities we as humans must face and can work towards, and that is the ethos of the SAEEC – ENERGY and WATER EFFICIENCY.

We at the SAEEC have prepared our programme for 2024, and without a doubt the focus is on energy and water efficiency and sustainability. Our first important event of the year will be the announcement of the winners of the 2023 SAEEC Energy Awards, at our Annual General Meeting of 14 March 2024. We congratulate and thank all our entrees and our winners for their endeavours towards an energy and water efficient future, for their dedication and achievements attained in this field.

During the month of March, we celebrate and commemorate International Women’s Month, and to honour all women in the energy and educating fields, we will be holding a webinar on 20 March 2024 “Our Way Forward in Energy and Educating.” We have invited a group of phenomenal women who will speak on the role of women in energy and education.

We look forward to engaging with you all at our one day Renewable Energy Convention on 3 May 2024. This has generated much excitement and we are preparing for an event packed with excellent speakers, who will cover important topics relating to renewable energy which includes wind power, solar power, hydro power, nuclear power, how to fund your projects and the legal aspects of the energy business. These are topics which all business owners and energy engineers need to be well informed about. In South Africa, we proudly boast of our engineers and their excellent skills, and their constant drive towards the use of alternative energy and water efficiency. As responsible citizens we need to heed their call and play our role in using alternative energy sources, enhancing sustainability and working towards a greener future for the future citizens of our earth.

At our annual Conference 3-4 October 2024, we will cover all aspects of Energy Efficiency – our theme this year ‘Energy Efficiency: Achieving Net Zero Carbon with Energy Management Related Activities.’ Our Conference sessions will include:

• • Clean Green Transport – fuel cell vehicles based on green hydrogen, electric vehicle batteries and carbon capture integrated gasoline transport, sustainable transport modes that do not impact negatively on the environment relying on renewable energy sources.
  
• • Measurement & Verification and Taxes – the importance of M&V and comprehensive, credible and accurate reports, and Carbon Tax related matters.
  
• • Artificial Intelligence and Energy Efficiency – presenting the newest technologies available to Industry, Mining and Commerce relating to AI and the role AI plays in the energy and water efficiency.
  
• • Water accessibility and water management – The importance of using water efficiently from supply sources, dams, storage and purification of water.
  
• • Energy Storage Systems – storage methods, batteries, environmental contamination, safety aspects and much more.
  
• • Net Zero Building and Smart Cities – efficient town planning, supply and use of water and electricity, environmental responsibility, collection of urban waste, EPC’s in buildings and energy efficient lighting.
  
• • Energy Management in Industry – implementation of ISO 50001, using energy efficient products and systems in plants.
  

We can assure you that you will be enlightened and informed by attending our 19th annual Conference as we have outstanding engineers who will present their papers and inform you of all new engineering developments in Industry.

Sustainability is an on-going project - we look at agriculture, and its importance with feeding nations and livestock, with the need for reliable energy and water sources, the need for food security is vital. There is something rather wholesome in growing your own vegetables and this is not reserved only for farmers, but city dwellers can and should consider this and it can be highly successful. There are excellent projects on agrivoltaics, hydroponics and aquaponics, where Universities are working in rural areas with farmers and assisting them in the development of these projects for sustainability and food production. A secure water supply -water is a commodity that brings life and comfortable living to communities, and we can note that from ancient days were human development and settlements were founded around suitable inlets close to the seas, along rivers and water courses.

Developing and educating our young citizens in using energy and water efficiently is essential, and exciting for them to understand that the ultimate goal is to make our planet a more pleasant place to live in. We will be joining forces with the Institute of Energy Professionals Africa (IEPA) and we will run a Career Expo/Conference on 21 June 2024. This will involve students from Universities and TVet Colleges, who are involved in energy, to present papers.

The SAEEC is involved in training and through our partnership with IEPA, engineers gain valuable knowledge through the courses offered. We are running a series of webinars on Energy Management Systems Implementation and ISO 50001, which will be a ‘How to Series’ , and we have engaged with excellent trainers and speakers to present this series.

We focus on Sustainability and Development to reach the ultimate Goal of the use of energy and water efficiently, and make our planet Earth a more comfortable place for all us to live in.

We invite you to join the SAEEC with a membership that is suitable for yourselves and herewith is the link to the on-line membership application https://www.saeeconfed.org.za/apply-here/

Join the SAEEC and make it your goal to look towards a brighter cleaner and sustainable future.

I trust you will enjoy the read and seriously consider joining us with your membership.

GO2Energy Digital Connect : Technical Journal.
(Information is available on our website www.saeeconfed.org.za)

SAWEA 2024 AGM marks significant progress in SA’s wind energy sector

SAWEA

T  he South Africa Wind Energy Association (SAWEA) convened its Annual General Meeting (AGM) on 20 February 2024, heralding a pivotal moment for the future of wind energy in South Africa.

The event was marked by the unveiling of SAWEA’s first annual report, which underscored the sector's vital contributions to the nation’s wind energy landscape in 2023, as well as the appointment of a new Chairperson and elected board members for 2024.

SAWEA 2023 Annual Report

Delving into the various activities in the wind energy sector through the 2023 financial year, SAWEA’s Chief Executive Officer, Niveshen Govender, delivered a comprehensive analysis of the wind energy market, addressing various facets crucial to the industry's growth. Emphasising global ambitions, Govender spoke about the continent's vast potential in renewable energy, particularly wind power.

“The report focuses heavily on SAWEA’s objectives, including the need to enhance grid capacity, the promotion of supportive government policies such as IRP2023, and the fostering of stakeholder relationships,” says Govender.

Internationally, the role of wind energy is increasingly critical, with global capacity reaching 1TW. Africa is emerging as a key player, led by South Africa’s 30% share of the continent’s 9GW capacity.

Domestically, the wind energy sector foresees the production of 3,200MW through Bid Window 7. Furthermore, ongoing negotiations with PPAs suggest the potential for an additional 3,000MW of energy to be produced in the coming years.

Discussing the local landscape, Govender meticulously unpacked the regulatory environment, shedding light on the shortcomings of the draft IRP2023 and outlining the association's strategic advocacy plan aimed at fostering a more consistent and ambitious national energy agenda.

Addressing the pressing issue of grid access challenges, he provided insights into the progress made thus far through collaborative efforts with NECOM, signalling a collective commitment towards overcoming obstacles and propelling the wind energy sector towards a sustainable future.

The report also highlights several notable achievements made by the association, including the groundbreaking Renewable Energy Grid Survey, conducted in partnership with Eskom, which revealed that 64GW of renewable energy projects are currently in development, with half of these comprising wind energy projects.

Other notable achievements include Windaba Conference & Exhibition that saw 1,000 attendees over the three conference days, where the Community Engagement Guidelines were launched. In addition, the Blade Painting/ Patterning Briefing Note was launched, the CAA Blanket Application for Alternative Means of Compliance (AMoC) for industry was approved, and the Gender Diversity Study concluded, which gave rise to the need to develop a gender diversity charter for the sector.

“The report further emphasises how the association's influence extends to pivotal regulatory and policy engagements, making substantial contributions to discussions on grid capacity, environmental norms, and the regulatory landscape,” says Govender.

Election of a new board for 2024

An integral part of the AGM involved the election of a new board for the 2024 financial year. Here, three new board members were elected, namely Lena Chirwa, Lance Blaine, and Nontokozo Nkosi (Treasurer); while previous members, Sunette Smith, Titania Zincke, Jose Rodrigues, and Niveshen Govender will continue in their respective roles. From this board, Smith steps in as the new Chairperson, succeeding Dhesen Moodley, whose tenure with the association marked several critical advances in the sector.

More details about the 2024 board of governance can be found here.

“I’d like to thank the former Chairperson, Dhesen Moodley for diligently leading SAWEA through a turbulent start for the industry in 2023. The interventions he introduced have reassured us that under the leadership of the incoming Chairperson, Sunette Smith, the association will achieve even greater levels of success and impact in advancing the renewable energy agenda in South Africa," concludes Govender.

Smith served as a board member in 2023 and is well versed with the association’s 2024 strategic priorities, with grid capacity being a key focus area. Bringing a wealth of experience to her new role, Smith is well-poised to propel SAWEA forward in its mission to promote and advance the wind energy sector in South Africa.

As Business Development Executive at Reatile Group (Pty) Limited, a South African investment holding company with a 21-year track record focused on energy solutions, Smith embodies SAWEA’s shared vision for a sustainable energy future. Smith's leadership is expected to further elevate SAWEA's impact in the renewable energy landscape.

"I am honoured to have been chosen to lead SAWEA at this pivotal time,” says Smith. “I look forward to building on the foundation laid by Dhesan Moodley and working collaboratively with stakeholders to advance the association’s goals."

Despite the grid capacity and industry-wide challenges, SAWEA remains steadfast in its dedication to fostering positive transformation and pioneering innovation within the renewable energy landscape. By championing wind energy as the bedrock of South Africa's sustainable energy future, SAWEA continues to lead the charge towards a greener, more resilient, sustainable future.

For more information on SAWEA’s 2024 Annual Report, kindly visit the link below:

https://sawea.org.za/sites/default/files/content-files/Financials/SAWEA_Annual%20Report%202024_FINAL.pdf

For more information on the Eskom study, kindly visit the link below: https://www.eskom.co.za/eskom-divisions/tx/renewable-energy-grid-survey/

About the South African Wind Energy Association (SAWEA)

Launched in 1998, the South African Wind Energy Association (SAWEA) is the leading voice in the country’s wind energy sector.

As a non-profit organisation representing over 140 members, SAWEA advocates for the advancement of sustainable energy practices, policies, and investment in South Africa’s wind sector. Additionally, SAWEA focuses on driving socio-economic development and transformation through wind energy. By engaging local and global stakeholders, SAWEA strives to accelerate the adoption of wind energy technologies and address the challenges associated with climate change.

To learn more, visit: https://sawea.org.za/

Actual Economics of a Nuclear Power Station

David Nicholls

Introduction

One of the fundamental issues that besets the nuclear energy debate is the “high cost” of nuclear power. The key issue is how one calculates the long term energy costs (R/kWh) from the complex set of input data, such as the “overnight capital cost” ($/kWe), the financing options, etc. This paper tries to explain how this can be worked out and shows the results from a given set of assumptions. Change the assumptions and the answer changes!

Basic Economics

The paper looks at a single large nuclear power unit being procured, it does get more complex if one looks at a series construction, but it also becomes cheaper in terms of R/kWe. A nuclear plant has two costed phases in its life. This is construction, when there is no income from production and very large expenditure in the construction costs. This costs is covered by loan and (possibly) equity finance.

The second phase is the operation of the plant, when there is an income from the sale of electricity to the grid and costs for the Operating and Maintenance (O&M) costs as well as repaying the debt (and equity) loans made for the construction. It must be noted that O&M in the model is seen to include both the fuel costs and provision for the decommissioning and waste disposal.

Key Elements

There are at least seven different elements on the calculation of the balance costs in the nuclear power debate. These can be seen as:

Capital Cost and related Spend Profile

Clearly a key input is the capital cost to be spent on the plant. This includes not only the vendor’s direct cost but also all the ancillary costs incurred by the future owner during this period. This is things such as staff and training costs, procuring the land for the plant, transmission integration, company infrastructure etc. The degree to which these costs are included in the main contract is not always clear to external parties and makes direct comparison between published costs difficult. The other issue is the spend profile of the costs. Clearly this overall spend is over a number of years (probably 6 to 10) and the interest incurred on these payments has to be capitalised into the overall debt owing once operation, and therefore cost recovery, begins. For the purpose of this analysis the spend curve shownon next page over 8 years is used. This is based on data from an actual construction project.

There was an analysis for the Energy Technologies Institute (an organisation backed by the UK government and a number of energy companies) which looked at 34 delivered nuclear projects round the world. The results were published in Financial Times – “Opinion - Inside Business” on 27 Jan 2019.

It showed that while the “First of a Class” units in the USA and Europe costs ranged from $9,000/kWe to $12,000/kWe only 15% of the projects reviewed had costs greater than $5,500/kWe, 45% were between $5,500/kWe and $3,500/kWe and 40% were below $3,500/kWe.

There is a clear division between the costs by two factors, that being the experience of the construction organization in recent years and the maturity of the design in country. Once one gets beyond the 4th unit or so in a series construction program the costs can fall to about $3,000/kWe, with the first unit being very significantly higher.

For the purpose of the analysis an overall cost of US$6000/kWe is therefore used as this is the higher end of current nuclear import costs and the spend is over the construction period assumed of eight years as shown above.

Export Credit Agency financing element and terms

Virtually all imported nuclear power stations are funded in large part by loans arranged by the vendor and backed by the exporting country. This is called Export Credit Agency (ECA) funding and is normally at very preferential rates. As an example the ECA financing Eskom has got for other (non-nuclear) projects is extracted from their 2020 annual report.

What can be seen is that the loans are incredibly competitive. It is notable that the Egyptian nuclear project obtained a $25bn ECA loan from Russia at a nominal interest rate of 3%. The standard term for an ECA loan is that it is a “hard” currency such as US$ or Euro, repayment starts once the plant is in operation and is repaid over the following 18 years. International experience is that ECA loans can cover 80+% of the overall project cost. For the analysis below it is assumed that the interest rate is 4% nominal in US$ and covers 80% of the project costs.

Local financing element and terms

The vendor arranged ECA loans do not normally cover the full project cost so the balance would be covered by domestic loans or owners equity. For the purpose of the analysis the same basic repayment terms as the ECA loans is assumed and the interest rate of 12% nominal is used

Local and foreign inflation rate

The payment terms of the loans mentioned above would be based on the actual loans taken out. What this implies is that annual repayment amount is fixed in currency terms over the 18 years, even as the inflation rates reduce the value of the money. Therefore a R100 repayment per year in year one has far more value than the R100 repayment in year eighteen. Therefore in real terms the repayments over the 18 years reduces by the rate of inflation. For South African Rand the inflation is presumed to be 6% per year while the US$ inflation is assumed to be 2% (similar to the actual value from 2010 to 2020). For reference the current exchange rate of R19/$1 is used for 2024.

Operating costs of the nuclear plant (including decommissioning funds)

The model uses $20/MWh in 2024 values. This is in line with the international view of new build nuclear plants and historical US and South African experience. It includes all non-capital costs in running the nuclear plant, such as staffing, fuel, maintenance, taxes & levies, decommissioning & waste provisions, licensing fees etc.

Expected performance of the nuclear plant

The only performance metric used in the model is that of Energy Availability Factor (EAF). For the analysis a figure of 90% is used. This is in line with the majority of large nuclear power programs in the world (e.g. USA, China, S. Korea etc). The plant is modelled as a 1200MWe unit.

PPA / tariff

Considering the current (2024) South African situation the nuclear plant PPA is aligned to the initial competitive bids for the Risk Mitigation Independent Power Producer Program (RMIPPP). This program had an average evaluation price of R1.676/kWh in 2021 for the approved projects. Using this (without inflation) the PPA value for the first 18 years is set at R1.60/kWh, reducing to R1.00/kWh onwards. The 18 year figure linked to the ECA financing period and was close to the 20 years of the RMIPPP (and REIPPP) contract terms. The PPA rates were also index to South African inflation in line with other national PPA practice.

Key Assumptions

There are a number of key assumptions that underpin any such analysis. Although the possibility of an equity funding element exists this is seen to be unlikely and all funding is assumed to be from an ECA loan or from a domestic source.

As there is no income in the construction phase assumed the Interest During Construction (IDC)) is assumed to be capitalised as Works Under Construction (WUC) and added to the repayment requirements on plant start up. It is assumed that the ECA and local debt take their portion of the IDC in the currency related.

The PPA tariff is assumed to be linked to South African inflation and the base value is in 2024 Rands.

Given the long-term nature of such a project the Rand/US$ exchange rate is assumed to change in line with the inflation differential. While there may be a wish to hedge the exchange rate exposure this is not viable over the timescale involved.

While it is clearly not realistic the project is assumed to start construction (Yr -7) in 2024

Results Obtained

All the figures are quoted in 2024 Rands. Clearly the actual numerical values will be much higher but the values we understand today are relevant. Just for interest the original 1976 Koeberg construction contract value was less that R1bn, in 1976 Rand!

What can be seen is that with these assumptions the power plant (at tariffs that are fully competitive) would have no effective debt within 15 years of unit start up, and would be massively cash positive after that. In this model the plant would be cash negative for year 1 to year 3 of operation and would need for a working capital loan of just under R2bn, which would be cleared by year 6. This could be managed by adjusting the local Rand loan as it is less than 6 months of Rand loan repayments.

Alternative Analysis

If one looks at what the PPA would have to be to have a payback period of 20 years or 40 years of operation at different capital costs the following table of results is interesting.

Of course if you just change the assumption to a cost of capital being 10% real you obtain a Levelised Cost Of Electricity (LCOE) over 40 years of R2.45/kWh, or over twice the model value.

Conclusion

If nuclear plants are modelled with real world data it can be seen to be potentially a very good solution for South Africa’s Just Energy Transition. One must be aware that seemingly conservative financial assumptions are often more important than the actual Capex and O&M of a nuclear plant in the analysis.

The imperative for a just transition in South Africa

Dr Mao Amis

T he transition to a low carbon economy is well underway globally, partly accelerated by the rapid decline in the cost of renewables, indicating that a shift away from fossil fuels is indeed possible. However, for some stakeholders and communities, a move away from fossil fuels might entail significant job losses and a potential loss of livelihoods. For example, South Africa, one of Africa’s largest economies is highly dependent on coal, with the sector employing close to 90,000 of the labour force. Considering the high levels of unemployment in the country, any transition plans that do not include significant job creation is guaranteed to fail. This is especially so, because South Africa has very strong Labour Unions, who will derail any plans to shift away from fossil fuels.

To achieve a just transition requires active encouragement of decarbonisation, avoidance of carbon lock-in, and bottom up approaches that support vulnerable communities impacted by the transition. An effective just transition pathway should promote the creation of more decent jobs, anticipating impacts on employment, adequate and sustainable social protection for job losses and displacement, skills development, protecting citizens and economic sectors against worst impacts of climate change and meeting climate targets etc. (Burton et al, 2019; Reitzenstein et al, 2018).

Attaining these milestones requires that the benefits and costs of the transition are fairly and equitably distributed to ensure that the transition does not cause loss and hardship, while creating economic opportunities especially in vulnerable communities.

This is particularly important for Africa, considering that more than 35% of Africans still live in extreme poverty which represents 70% of global poverty rates (Cuaresma et al 2018). Linked to that is the fact that 600 million people on the continent lack access to reliable energy to meet their basic needs (IEA 2019).

For South Africa the risk of climate change is quite evident, with increased incidents of extreme events, posing a major threat to its economy, including water resources, food security, health, infrastructure, as well as the country’s ecosystem services and biodiversity (Ziervogel et al (2014). The challenges South Africa faces are partly attributable to climate change, with extreme events projected to become more intense and frequent over time. Climate change thus has the potential to generate a vicious cycle of increasing poverty and vulnerability, worsening inequality amongst vulnerable and marginalised groups (United Nations, 2020). Vulnerable members of society such as those living with disabilities, elderly, children and the unemployed are the most impacted by the impacts of climate change.

South Africa has made some strides in the energy transition by mobilising investments for the uptake of renewable energy technologies, however, some sectors of the economy are still lagging behind. For example, sectors such as the transport sector and manufacturing are yet to see any major uptake in green technologies. On the other hand, the country’s economy still remains locked in high dependency on coal-powered electricity, which is neither reliable nor cheaper, hence there is a strong need for the country to transition to a low carbon economy. While poverty, inequality and unemployment remain very high. It is estimated that South Africa will require at least US$250 billion in the next three decades to transform the energy system, while more finance will be needed for the country to transition to fully low carbon development (PCC, 2022).

The risk of just transition to workforce and local communities

In addition to high unemployment there is a growing concern about the potential job losses in sectors such as the coal industry value chain, agriculture, tourism etc. The coal sector value chain is an important sector in terms of job creation in South Africa. However, recent statistics reveal that the coal sector is declining, and the projections reveal that the sector will continue to decline. The coal industry employs many unskilled workforce. In the 1980s the coal mining industry was contributing around 140, 000 direct jobs, and this number had since decreased to nearly 77, 000 direct jobs in 2015 (Strambo et al, 2019; Hanto et al, 2021). In 2021, the coal mining industry provided around 0.4 million jobs for South Africa’s workforce, with 80 000 direct jobs, while creating 200 000 – 300 000 in indirect and induced jobs in the broader coal value chain and economy (NBI, 2021). This shows that jobs in the coal mining industry are receding significantly and even the current existing jobs are at risks due to South Africa’s decarbonisation efforts.

The just transition in South Africa will also lead to stranded communities where there will be massive job losses in the short term. For instance, provinces such as Mpumalanga where significant coal mining operations take place will experience challenges due to the labour force dependency on coal mining. For example, our fieldwork and research in Mpumalanga in local communities which are located around the recently decommissioned Komati Power Station found that there was much anxiety about the safety of jobs, especially for workers that are contracted to supply Eskom. The challenge is that the workers that are affected by the transition plans in the coal mining regions are relatively young people with a median age of 38 years. This means that these workers will not want to retire as they will need to work to support their families after the coal mine closure.

The building blocks for achieving a just transition

For South Africa to truly harness the opportunities to achieve a just transition and minimise its risks, there are some key building blocks that need to be put in place.

1. Prioritise green job creation

It is important for South Africa to ensure that job creation is at the core of its endeavour to achieve a just transition. Due to the high unemployment rates and the fear job losses in affected sectors, there is a negative sentiment towards energy transition in the general populace. This has been compounded by the on-going energy crisis in the country, which has negatively impacted the economy. Another concern is that the just transition will not be able to replace all the employment that will be lost in the coal value chain sector. For instance, in regions like the Northern Cape, where several renewable energy projects are located, local communities are concerned that their impact on the local economy has been minimal at best, and in some cases has led to job losses among farm workers.

2. Focus on localisation to strengthen domestic manufacturing of green technologies

There is a significant opportunity for South Africa to promote localisation of green technologies, since many of the technologies deployed in the country's energy transition are mostly imported. For example in 2023, South Africa imported $3.8 billion worth of solar panels. This despite the fact the South Africa has significant manufacturing capability, but is unable to compete globally in the green technology sector (Amis & Lugogo 2018). Promoting localisation of green technologies, will unlock many opportunities and address the systemic unemployment crisis. However, to tap into this opportunity, significant investments will be require to build skills, including the reskilling workers in the traditional coal sectors, to work in the green technology sector.

3. Strengthen youth and women participation

One of the essential components of establishing a just and equitable transition is empowering the most vulnerable community members. Skills substitution programs (targeted towards the youth and women in particular) are important in fostering the path to a low carbon economy. Africa has the youngest and fastest-growing population in the world, and in most countries including South Africa, the youth are the ones struggling with the challenges of unemployment in their respective countries. For instance, the youth unemployment in South Africa is over 50%. Thus, the green transition provides a great opportunity to target the youth as they are challenged to become more innovative and come up with business solutions that can help in simultaneously eradicating energy poverty and unemployment. There is also a need to prioritise and provide opportunities for women to be more involved in the opportunities which are provided by the just transition in South Africa. According to Statistics South Africa the majority of people who are confronted by challenges of poverty and unemployment in South Africa are black and female. Therefore, ensuring that women strongly participate in the country’s just transition ambitions will play a critical role in addressing systematic challenges of the past including the current societal challenges that South Africa faces such as gender-based violence. To empower both the youth and women would require the provision of education and training opportunities, in addition to access to business and employment opportunities.

4. Empower local governments to effectively implement national policies

The effective implementation of any just transition mechanism is both a local and national responsibility, however in South Africa the discourse is still at a relatively high level, with very few local authorities participation. This is problematic, as just transition is an economy wide endeavour, not limited to the energy sector. There is a need to empower the municipality to take charge in implementing national policies and their own integrated development plans (IDPs) to ensure that economic and climate targets are met at the local and national government level. However, the lack of capacity with most local Municipalities in South Africa, has hindered their effective participation in driving the just transition. There is an urgent need to bolster the capacity of local authorities to ensure that the country is on course to achieve a just transition. If the local municipalities are equipped with the necessary skills and knowledge, it will ensure that they are able to deliver on the country’s decarbonisation agenda, while delivering vital services their residents.

Conclusion

In terms of achieving a just transition South Africa is consistent with the Paris Agreement. The country has managed to develop elaborate policies that are aimed at addressing the key challenges such as climate change, unemployment, poverty and inequality. Over the past few years the just transition discourse has gained a tremendous support in South Africa. This was recently amplified by passing the Climate Change Bill 2022, and development of the just transition framework and investment plan among others.

Despite the aforementioned significant developments that have taken place in South Africa, some major challenges still persist. For instance, the country decarbonisation agenda is still offtrack, while load shedding and high electricity prices remain a persistent challenge hindering the country’s economy and peoples’ livelihoods. Effective policy implementation remains a major constraint hindering the acceleration of the just transition both at national and local government level. However, despite these challenges, there are still numerous opportunities for achieving a just transition in South Africa. The country need to promote job creation, by fostering an effective green innovation ecosystem. There is also a need mobilise climate finance to enable green innovations to be scaled up, and to localise green technology value chains. Finally, there is need to build a strong skilled workforce, to enable workers in traditional sectors such as coal and mining, to explore new job opportunities in the emerging cleantech sector.

This article is part of the research work the African Centre for a Green Economy is currently doing, funded by the International Development Research Centre (IDRC). Project Number: 109566 – 001

References

• • Amis, AM, S. Lugogo (2018). The South African Water Innovation Story. Water Research Commission, Pretoria, South Africa.
  
• • Hanto, J, Krawielicki, L, Krumm, A, Moskalenko, N, offler, K, Hauenstein, C and Pao-Yu Oei. (2021). Effects of decarbonization on the energy system and related employment effects in South Africa. Environmental Science and Policy 124: 73–84
  
• • National Business Initiative. (2021). Just Transition and Climate Pathways Study for South Africa: Decarbonising South Africa’s Power System. National Business Initiative. South Africa.
  
• • Presidential Climate Commission. (2022). A Framework for a Just Transition in South Africa. Presidential Climate Commission Report, Pretoria, South Africa.
  
• • Strambo, C, Burton, J and Atteridge, A. (2019). The end of coal? Planning a “just transition” in South Africa. Stocholm Environment Institute and Energy Research Centre, University of Cape Town.
  
• • Ziervogel, G., New, M., Archer van Garderen, E., Midgley, G., Taylor, A., Hamann, R., Warburton, M. (2014). Climate change impacts and adaptation in South Africa. Wiley Interdisciplinary Reviews: Climate Change, 5 (5): 605-620.

Understanding Carbon: The carbon tax and carbon credits in a nutshell

Anthesis South Africa

As the 14th largest Greenhouse Gas (GHG) emitting country in the world and the 5th most carbon-intensive country per million dollars of GDP, the importance of a decarbonisation agenda for South Africa cannot be understated. As part of a suite of climate change response initiatives, the South African Government introduced Africa’s first carbon tax in June 2019. The Carbon Tax Act (CTA) requires carbon emitters in designated sectors to gradually start paying for their contribution to national GHG emissions to help incentivise greenhouse gas emission reductions.

In the first year of the tax, companies were loosely taxed on their emissions at a rate of R120 per tonne CO² equivalent emitted, but with a broad range of allowances in place, the financial impact was barely noticeable for most (see figure 2). From 2025 however, the rate is set to increase quite rapidly (see figure 3) and the allowances are set to fall away, meaning the clock is ticking for companies that have been blasé about taking action on their carbon footprints.

The main aim of introducing this tax is to assist the Government achieve the country’s emission reduction commitments to the Paris Agreement on Climate Change and it applies to most stationary and certain non-stationary scope 1, GHG sources that include fossil-fuel combustion, fugitive emissions and industrial process emissions. The tax does not currently include scope 2 or 3 emissions, which are emissions from service providers to businesses (like Eskom) as well as supply chain emissions.

While the process by which emitters determine accurate individual emission contributions under the South African system remains costly, they are also able to use ‘emission factors’ established by the Intergovernmental Panel on Climate Change (IPCC). These are factors that give an approximation of GHG’s emitted depending on how much fuel was combusted, or product that was produced. Over time, more accurate domestic emission factors will be developed for use in South Africa, but exporters should take note that similar “default values”, will be applied on products exported to the European Union under their Carbon Border Adjustment Mechanism (CBAM) system which is set to end its first reporting period for importers on 31 January 2024.

In the first phase of the CTA the waste sector as well as the Agriculture & Forestry sectors have been excluded, but plans are underway by the state to include waste as a carbon tax-liable activity under phase 2 of the tax from 2026. Current target sectors include energy; manufacturing and construction industry; mining; various mineral industries (cement, glass and lime production); the chemical industry; and the metal industry (iron & steel, aluminium, zinc & lead production). Any industry however that exceeds the 10 MW installed thermal input capacity threshold for combustion activities that result in emissions is liable.

Phase 1 of the carbon tax has recently been revised and extended to the end of 31 December 2025. This phase was planned as a transitional phase of the tax, that allowed tax-liable entities to prepare for the carbon tax in years to come through the use of the various allowances.

National Treasury is currently developing plans for Phase 2 of the carbon tax, but few solid details have been released with regards to the expected changes except: the new price path; a possible increase in the amount of allowable offsets from 10% to 15% of total taxable emissions; and the inclusion of the waste sector as a tax liable activity.

The South African Climate Change Bill

The Climate Change Bill was introduced to the National Assembly in February 2022 and is distinct from the Carbon Tax in that it provides the overarching framework to ensure that South Africa has the necessary statutory framework to mitigate GHG emissions as well as facilitate adaptation to the effects of climate change. The carbon tax forms one leg of this broader framework.

In particular, the Climate Change Act must define the roles and mandates of different sectors of government, develop sectoral adaptation strategies and generate emissions targets aligned to company-specific carbon budgets. Exceeding these carbon budgets is currently intended to include punitive pricing on emissions exceeding the allowed emissions target at a cost of R640 per tonne according to the 2024 budget speech. The Bill will make it compulsory for emitters to participate in the carbon budget system and will allocate a greenhouse gas emissions allowance to an emitter for a specific period of time.

In its current format, the Climate Change Bill has a 5-year horizon for implementation meaning that these measures are mandated for implementation by no later than 2028, but should the bill be enacted this year the carbon budget will come into place from 1 January 2025.

Carbon offsets

Carbon offsets are measurable avoidances, reductions or sequestrations of GHG emissions derived from projects at least partially intended to deliver on these outcomes. If they are to be used under the South African carbon tax system, these offsets must be certified under one of three carbon standards:

1. 1. the Clean Development Mechanism;
   
2. 2. Verra’s Voluntary Carbon Standard; or
   
3. 3. the Gold Standard
   

If they are to be used under the CTA, the offsets must then be registered on the Carbon Offset Administration (COAS) system by the end-user wishing to claim a carbon tax liability reduction. An example of a suitable carbon offset process would be an agricultural firm (agriculture is currently exempted from the tax) installing a waste-to-energy system to deal with agri-waste and generate a reliable power back-up. The GHG emission savings from this project could be assessed and traded via the platform with a high carbon emitter, potentially securing the financial viability of the project.

The potential market for South African carbon offset certificates currently stands at around 10 million tonnes a year, while the current certified supply is only about a million tonnes a year. Through the COAS, carbon tax-liable companies can channel carbon revenue to developers of low-carbon projects. Key project areas that are currently eligible for the generation of carbon credits include off-grid small-scale renewable energy, energy efficiency, Agriculture, Forestry, and other Land-Use (AFOLU) projects, waste to energy, including waste treatment and biogas, electricity transmission and distribution efficiency, landfill gas recovery & energy production, production of biofuel and efficiency in transport.

It is important to note however that while offsets can assist companies to finance mitigation options, carbon offsets are only applicable in so far as they do not reduce scope 1 emissions as this impacts on their carbon tax liability. Carbon offsets allow companies to reduce emissions outside of their own operations when they do not have emission reduction options in-house and claim them back as a carbon allowance for up to 10% of their total taxable amount. For companies that are not producing their own carbon offsets they can purchase them from a carbon offset trader with the price on domestic carbon offsets standing at around 90% of the carbon tax rate, meaning that companies are incentivised to use them, not least of all because the projects that this finance flows to are audited by third-party bodies, so the end recipient of the finance is clear.

El Niño-induced drought hits the Southern Africa’s agricultural sector

Wandile Sihlobo

At the end of February 2024, South Africa, Zambia and Zimbabwe published reports indicating a potential decline in grain harvest because of intense El Niño-induced dryness. In South Africa, a recent farmers’ survey by Grain South Africa showed severe grain and oilseed production challenges in various patches across the country, which have probably worsened in the past week since the survey was completed on February 21.

The Crop Estimates Committee (CEC) also fears the possible decline in the summer grains and oilseed harvest. In its first production estimate for the 2023/24 season, the Committee placed the summer grains and oilseed harvest at 17,4 million tonnes, down 13% y/y. This is primarily a function of lower expected yields rather than an area reduction. This is an overall production figure, and the decline varies crop by crop. Still, a positive aspect of South Africa is that the expected harvest still covers the domestic consumption, leaving some volume for exports, albeit significantly down from the previous seasons.

The weather forecast only shows prospects of widespread rainfall in the week of March 11, which may be too late for various summer crop-producing regions where the heat is already damaging the crop, mainly in the western and central regions of the country, as rainfall in these areas was not as intense even from the start of the season. Still, if the expected rain in the second week of March materializes across South Africa, other commodities, outside the summer grains and oilseed, would still see better production conditions and improvement.

There has not been a lot of talk about other value chains outside summer grains and oilseed, primarily because of higher dam levels from the past few years and earlier rains in the season. With all of South Africa’s commercial fruit and vegetable production under irrigation, the improved water levels in the dams assist farmers in coping with the current heatwave, provided the load-shedding is minimal. The livestock industry is still in a relatively better place as the grazing veld has generally improved, and there were large maize and soybean supplies from the 2022/23 season. The field crops are primarily rainfed. For example, only about 20% of maize, 15% of soybean, and 34% of sugarcane are produced under irrigation, leaving a large part of the crop at the mercy of the natural rains, which have been scarce since the start of February.

Zambia under drought stress

In Zambia, the drought impact seems worse than in South Africa. On February 29, the country’s President, Mr Hakainde Hichilema, declared Zambia’s severe drought a national disaster and emergency. There is crop damage in the majority of the summer crop-producing regions of the country because of the El Niño-induced drought. Worryingly, the government reported that the drought has destroyed nearly a million hectares of maize.[1] Given that the overall commercial maize area planting in the country is about 1,9 million hectares, this would mean half of the production is destroyed. It could have significant negative consequences on food production.[2]

Zambia is the second largest maize producer and exporter in Southern Africa after South Africa. This means if the maize harvest is down notably in the country, there will be no volume for exports in the neighbouring countries that also need supplies. This happens at a time when South Africa, although potentially with sufficient supplies for domestic consumption, would have a massive decline in the volume of maize available for exports. The entire Southern Africa maize supply chain is at risk, with Zambia and South Africa hard hit by the heatwave and dryness. The neighbouring small producers such as Zimbabwe, Botswana, Lesotho and Nambiar are also struggling with dryness.

Zimbabwe’s grain production is also strained

At the start of this year, there were reports of roughly 2,7 million Zimbabweans potentially at risk of hunger because of the drought impact in their summer grain fields.[3] Moreover, on February 28, Reuters reported that “Zimbabwe plans to import 1.1 million metric tons of maize over the next year”.[4]

It is unclear how much of this volume has thus far already been imported into the country. The volume speaks to the pressures of maize supplies in Southern Africa. Typically, when Zimbabwe needs such large maize imports, South Africa and Zambia are the primary suppliers. With Zambia potentially out of the export market this year, the pressure is now on South Africa to supply Zimbabwe.

Still, suppose all the required maize is of the white varietal, South Africa may not be in a position to provide Zimbabwe with the total required volume, particularly if we consider that the likes of Namibia, Botswana, Lesotho, Mozambique, Madagascar, and even Zambia will also require maize imports to supplement their domestic annual needs.

Policy considerations

While we are dealing with a “moving target”, and the extent of the impact of the heatwave and dryness on crops changes daily, it is clear that the whole Southern Africa region has taken strain and will see a significant reduction in the volume of the crop produced. Although the domestic hunger challenges may rise in some countries, as we already see in the forecasts in Zimbabwe and Zambia, the governments in the region must be careful about the response policies and programmes to these potential challenges. There are several key points they should consider, such as:

• • Avoid export restrictions and maize price caps. While restricting exports seems like a good approach for the near term to cushion households, such an intervention disincentivizes production for the next year as the farm-level prices would be artificially depressed. This is particularly important as farmers are not protected from higher input costs and pay world prices for all the imported inputs such as fertilizers, agrochemicals and some seeds.
  
• • The interventions should be at the household level through various support packages with fiscal space used to implement such programmes.
  
• • The regional governments should also engage with the World Food Programme to prepare to assist the least well-off countries with maize imports from the world market.
  
• • The governments should also engage, collectively with the private sector, the likes of Mexico that produce white maize, to assess if they would have space to export to the Southern Africa region if the need arises.
  

• • [1] Read more about Zambia’s potential decline in maize harvest here: https://apnews.com/article/drought-national-disaster-emergency-electricity-4cc6a2105f4641efe17e10a5b75f78a5
  
• • [2] This USDA report provides better insight on Zambia’s overall grain plantings: https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Zambia%20Maintains%20its%20Status%20as%20a%20Net%20Exporter%20of%20Corn%20_Pretoria_Zambia_ZA2023-0001.pdf
  
• • [3] Read more about Zimbabwe’s hunger issues in this AP’s report of 17 January 2024: https://apnews.com/article/zimbabwe-hunger-food-aid-el-nino-climate-aa25b4d2ee6405a792d75a0d4d12d505
  
• • [4] The full article from Reuters is available here: https://www.nasdaq.com/articles/zimbabwe-targets-1.1-mln-tons-of-maize-imports-state-media-reports

3Bee, the Nature tech Company that monitors and regenerates biodiversity through technology

Biodiversity is the sum of all forms of life on our planet, from the smallest organisms to majestic trees, from industrious insects to fascinating predators, and from microscopic cells to the complex ecosystems in which they develop. It plays an indispensable role in maintaining the fundamental ecological functions. In fact, it is estimated that about 87.5% of wild plants globally (around 308,000 species) depend on animal pollination for their reproduction. Additionally, about 75% of food crops directly rely on the tireless pollination work of pollinating insects. However, they are increasingly endangered due to the consequences of climate change, habitat loss, and other multiple threats. Without them, the balance of our planet’s ecosystems and consequently, the human balance would be severely compromised, making it important to contribute to their protection.

In this context, 3Bee, a naturetech company, has emerged, developing technologies for the protection of biodiversity and its “Biodiversity Oasis” regeneration project. The Biodiversity Oases are urban and agroforestry habitats created in low biodiversity areas with the goal of regeneration: a first step towards climate resilience where nature and technology merge. 3Bee’s Biodiversity Oases play a crucial role in promoting conservation, ecological balance, and ecosystem resilience: nectar-producing plants are planted where once there was an agricultural desert, aiming to provide nourishment for pollinating insects. The regenerated hectares of the Oases are directly measured using 3Bee’s technology for the continuous improvement of the area’s NDVI index. Not just environmental oases but also spaces for social gathering, physically enhancing awareness on the topic through sensitization paths. To date, 3Bee’s goal is to increase from 250 to 10,000 Biodiversity Oases created within two years. A goal that can be achieved through the commitment and valuable contribution of biodiversity cultivators, mainly agricultural companies competent in the care and management of the Oases, but also research partners and companies that want to play an active role in the protection of biodiversity.

Since its inception, 3Bee has developed various monitoring technologies for biodiversity protection, in particular the Element-E biodiversity monitoring protocol: an innovative approach based on new technologies and partnerships with renowned universities and research centers. It is a technology-based biodiversity monitoring protocol - whose use is verified by Bureau Veritas Italy, a leader in certification services - that uses a science-based approach to guide concrete actions in the field. Born from the synergy of technologies developed by 3Bee, Element-E combines data collection and analysis into a single advanced framework.

Element-E is part of a site-specific approach identified by 3Bee, which consists of the following steps:

• • Assessment - detailed habitat and biodiversity analysis of the site.
  
• • Regeneration - Identification of targeted regeneration actions.
  
• • Communication - sharing the results through the dedicated website and the Element-E label certifying the use of the protocol.
  
• • Monitoring and reporting - from the data returned by the technology, preparation of the ESG biodiversity report in accordance with international standards.
  

Among other technologies developed by 3Bee are:

• • Hive-Tech, 3Bee’s first system, which allows analyzing the health and “hunger” state of bees, as well as the presence of surrounding biodiversity.
  
• • Polly X, a refuge for solitary bees (osmia) that acquires and monitors air quality, collecting essential data on the presence of heavy metals, pesticides, and particulate matter in the atmosphere.
  

Thanks to the Element-E protocol, 3Bee was recently selected by the European Innovation Council as part of its EIC Accelerator for the development of the first certified biodiversity credits. 3Bee’s revolutionary approach to biodiversity credits will operate in response to the increasingly numerous realities subject to the NFRD following the release of the new CSRD Directive, supporting strategic management of ESG issues to objectively verify and quantify impacts in terms of biodiversity regeneration. Companies will be able to monitor and regenerate biodiversity at their production sites and supply chains, but also be promoters of reliable offsetting. In this context, the Element-E protocol will allow for the monitoring and quantification, also thanks to artificial intelligence, of the impact of regeneration projects developed in coherence with the new European regulatory framework, which requires companies to assess their impact for ESG reporting.

Following the EIC announcement, 3Bee will apply the Element-E protocol to a total of 250 sites in 4 European States - Italy, France, Germany, Spain - with the goal of scientifically validating the methodology in different climatic and geographical areas.

With the goal of releasing biodiversity credits on the market within two years, 3Bee’s revolutionary approach to biodiversity protection, based on data and technology, represents a significant step forward towards achieving the goals of the EU’s Biodiversity Strategy, ensuring transparency, reliability, and scalability.

For naturetech, therefore, technology goes beyond field sensor technology, thanks to daily collaboration with research institutions that provide access to important databases, such as the satellites of the European Space Agency (ESA). The technology is therefore also satellite-based and is considered a useful means for studying the health status of biodiversity. Moreover, the bee itself has a fundamental role in this field: it is the first indicator of environmental biomonitoring that 3Bee studies in various ways and from which it obtains essential data to continue research in this field.

To date, 3Bee has implemented regenerative projects alongside over 500 companies in 10 countries that have chosen to concretely contribute to biodiversity protection, whose ESG criteria are based on the evidence of a positive socio-environmental impact. Not just technology for monitoring hives of honeybees and wild bees, but also real projects for planting nectar-producing forests with the goal of producing nectar reserves over time, naturally compensating for the scarcity of provisions and nourishment for bees and pollinators, and creating more and more Biodiversity Oases for the benefit of our ecosystem.

As a rapid and authoritative scientific partner, 3Bee collaborates not only with companies but also with research centers, schools, farmers, growers, municipalities and citizens to promote the importance of biodiversity protection and regeneration.

Quality Testing for the Agricultural Industry: An Important Link in the Value Chain

The Southern African Grain Laboratory NPC

Informed business, economic and social decisions in the food and feed value chains are based on information on the quality of the commodities being used as raw materials and that of the final products. The quality can only be assessed when accurate measurements are available that also ensure food safety, and finally support trade.

The Southern African Grain Laboratory NPC (SAGL), established in 1997, has a Crop Quality and a Crop Protection division. Both divisions are accredited under the international ISO/IEC 17025 standard and the Crop Protection Division also complies with the OECD Principles of Good Laboratory Practice (OECD GLP).

To confidently provide accurate, reliable, and comparable measurement results, testing laboratories can implement a range of measures including, but not limited to compliance with quality standards such as ISO/IEC 17025 for testing laboratories.

Globally, there is an increased emphases on food security and food safety with growing population numbers putting pressure on natural resources to provide enough safe food and feed. As a result, the spotlight also moved to reliable testing results as an integral part of improved productions, management, and early warning systems.

The South African National Accreditation System (SANAS) conducts surveillance audits at regular intervals to confirm the laboratory’s compliance and during these assessments, new methods and technical signatories are also evaluated to be added to the scope of accreditation.

Since 1999, the SAGL complies with this international standard and received accreditation from SANAS. The SAGL uses measurement standards or reference materials as prescribed in the standard to confirm technical competence and to ensure international comparability and demonstrates continued method performance through participation in relevant proficiency testing schemes and the use of appropriate quality control materials.

The Crop Quality Division performs national crop quality surveys on wheat, maize, soybeans, sunflower and grain sorghum and offers specialised analyses on food, feed and related products. Results of these surveys can, for example, be used when recommendations need to be made with regards to changes to regulations, such as grading regulations. It can also be used when value chain studies, with the purposes of implementing improvements, are conducted.

The division’s scope includes grading of grains and oilseeds, nutritional analyses, dough quality and baking tests on wheat flour, multi-mycotoxin analysis (using LC-MSMS), vitamin and mineral analysis and amino acid analyses. The division also offers research support to industry for product and method development, training courses covering theoretical and practical laboratory training and proficiency schemes to local and international participants. The grain and oilseed industry use reliable quality data on agricultural commodities when marketing these products locally, but even more importantly, to prospect customers in the rest of the world.

Customers submit samples to the laboratory to support their internal quality control processes and make use of calibration samples prepared at the SAGL to evaluate the accuracy of their equipment and the competency of their employees. They also participate in the proficiency schemes offered by the SAGL.

The Crop protection Division analyses agricultural formulations and technical material (5-batches) for registration and conduct quality control analyses of plant protection products according to international standards. The concentrations of the active ingredients and impurities are determined using either Gas Chromatography (GS-MS) or High-Performance Liquid Chromatography (HPLC-DAD). Other tests include water content, particle size using laser diffraction, density, viscosity, pH, and flash point.

An important goal of the SAGL is to continuously improve the quality of the testing while increasing the sample throughput with the implementation of new technology, training of the laboratory staff and improved quality systems. We conduct investigative and research studies to find solutions or suggest alternatives to current processes.

To access quality data on soybeans, sunflower, grain sorghum, wheat, and maize, please visit the website, or contact the SAGL where our friendly staff will gladly assist you.

Closing the Loop for Sustainable Development in South Africa

The circular economy is set to play an increasingly important role in years to come, as countries around the world seek to minimise waste and promote sustainable living. Funding from corporate social investment (CSI) initiatives, meanwhile, can indirectly help nonprofits support South Africa’s small business sector and uplift communities.

Food & Trees for Africa (FTFA) recognises the importance of developing circular economies, which offer huge potential for communities – particularly in rural areas – to become more self-sufficient and thrive in the long-term. Because of this, FTFA is committed to investing time and effort into nurturing these circular economies in the communities in which it operates. The organisation also channels the majority of the CSI funding it receives into making these self-sustaining systems a reality across South Africa.

“We support a circular economy particularly within rural areas because we think it’s the right thing to do. It’s part of our company culture to look at the bigger picture – CSI funds we receive are used to support small farmers and provide training on our market garden, tree planting, EduPlant, and other programmes,” says Rogan Field, head of procurement at FTFA.

Waste not, want not

A circular economy aims not only to reduce, reuse, and recycle raw materials, but rather seeks to eliminate as much waste as possible in the first place from business operations. However, this is often far from a reality. There are opportunities for businesses to repurpose this waste and drive economic growth.

For instance, Oricol Environmental Services is a longstanding partner of FTFA. For over two decades the company has provided South Africans with a comprehensive approach to managing waste, improving its diversion of waste from landfill disposal from 20% in 2008 to over 70% in 2021. It does this by focusing on reuse, recycling and recovery: reintroducing resources back into the economy, contributing to economic growth and job creation, and reducing social and environmental costs.

Oricol’s green solutions for organic waste include composting, reintroducing suitable organic waste into agriculture, and vermiculture (worm farming) solutions for offices. In keeping with circular economy principles, recovered waste is reused in a separate manufacturing process. By partnering with FTFA, the company takes their commitment one step further. Planting trees and developing organic food gardens in underserved communities achieves the additional objectives of ensuring that natural capital is regenerated and fortified for future generations.

Bringing communities together

The circular economy is not only focused on eliminating waste: it also helps to bring communities together. “A large amount of the rural economy is exported to neighbouring towns or the nearest commercial centre. No economy is retained within the community, perpetuating cycles of poverty and suffering. There is very little primary production,” explains Field.

He points out that while people living in urban areas can simply pop around the corner to an air-conditioned store and expect to get top-quality produce for very reasonable prices, most people in rural communities have to walk or take a taxi for as far as 40km to access the same quality of service. Often their only other option is to shop in the local community, which usually means a hot, unairconditioned store, full of poor-quality products at exceptionally high prices.

“It's a bit of a moral dilemma – the inequality goes so far that it actually punishes those who are not as well off as others. At the same time, though, it’s important to recognise that there is an opportunity for people in those communities. They can grow those vegetables, set up a farm stall, bake some bread, fix bicycles… in short, communities have the power to evolve and develop their own internal economies,” Field says.

This is where FTFA puts a major emphasis on supporting small businesses and promoting a circular economy within communities. “If I can, I will identify a local hardware store where I can source all the materials for a project – often at an inflated price in order to support that local supplier rather than a large commercial store chain. I can justify paying 10% more in the community, because often I can make that back by saving on transport costs. More importantly, though, it’s about how we can support those local businesses when we can find them,” Field elaborates.

He spends a lot of time with FTFA’s facilitators across South Africa, trying to understand the context of a particular project and the best way to identify local suppliers, especially for products like compost, mulch, fertilisers (kraal manure), building materials, and irrigation supplies. “These are the sorts of things we’re using at our projects,” says Field. “Obviously, this requires effort on the behalf of the facilitators, but we do sometimes pass this on to the beneficiaries themselves.”

Making the right choice

Field is keen to stress that it’s not simply a case of paying over the odds for a local supplier, simply because there is one available. “It’s about finding what approach works best in each particular context, rather than focusing every single time on local suppliers,” he explains.

“We have a fantastic relationship with Starke Ayres, for example, for seed supply. They give us a significant discount on their wholesale price and an annual donation, as well as plant trees with us. All of this input gives us the chance to supply resources to projects for cheaper than we would otherwise be able to.”

By minimising costs, FTFA is able to maximise the benefits going to projects. “We’re very conscious of this, and it’s an important focus for us. This is why the strong relationships we have with certain suppliers are so important to us,” Field adds.

Sometimes, FTFA is able to take this idea one step further. “A project of ours in Lesotho, Action Lesotho, turned out to be growing seedlings, and has ended up becoming our official supplier of seedlings for the other four projects we run in the country,” explains Field. “Moving into 2024, we have three new Lesotho projects coming online, and we will definitely contract Action Lesotho to supply seedlings to those projects as well. That’s a really great example of one of our projects actually becoming one of our suppliers. As long as we have projects in Lesotho, we will look to maintain that relationship.”

Using CSI funds effectively

When it comes to funding, FTFA’s core mission is clear: to get out there and support as many food gardens, plant as many trees, and provide as much training and insight as possible. Consequently, most of the CSI funding the organisation receives goes towards performing that task.

Field points out that there are many aspects that need to be covered. “We remunerate our facilitators and pay staff, for example, but while there is an administrative fee attached to the donations that we get, as far as possible 100% of these go to their intended use, which is to promote farms,” he says.

This is where incorporating CSI funding into the circular economy comes into play. “Because we understand that these farmers are not just operating in silos – that we’re dealing with a broader social development context – we’ve really taken that to heart, to look closely at what more we can do, beyond simply paying for our facilitators to run a project and provide the resources,” Field explains.

“By managing budgets and resources across projects, as well as an end-of-project review of what we actually spent versus what we budgeted, we can look at whether there is any remaining budget and allocate that money to somewhere that needs it,” he adds.

At the end of the day, the key to all of this is transparency. “Really, it’s all about getting as much bang from the donor’s buck as possible. We’re very transparent with our donors about how we spend their money, which is a major differentiating factor – there are not many organisations out there doing this sort of work that also offer very transparent reporting on how money is spent and where it goes,” notes Field.

It is critical that donors are able to see the impact their money is making. FTFA’s social investment platform, “Footprint”, is all about helping corporates to identify suitable beneficiaries and tangibly measure their impact. “To be honest, this is a unique selling point at the moment in the non-profit sector – the best way to attract donors and investment is to show them how their money is being spent. We’re proud that we are able to do that,” Field concludes.

Embrace the Essence of 'Loving the Land' with Agricolleges International

Agricolleges International

Introduction

In today's fast-paced world, the concept of "loving the land" holds immense significance. It goes beyond mere appreciation for the natural world; it encapsulates a deep-rooted connection with the Earth and a commitment to its preservation for future generations. Agricolleges International, a leading institution dedicated to agricultural education and sustainability, embodies this ethos in its mission to empower individuals and communities worldwide. In this extended exploration, we delve deeper into the multifaceted aspects of "loving the land" and how Agricolleges International is spearheading efforts to cultivate a sustainable future.

Understanding the Essence of "Loving the Land"

"Loving the land" is a concept that transcends cultural and geographical boundaries. It encompasses a profound appreciation for the Earth's resources and acknowledges the interconnectedness of all living beings. At its core, it signifies a holistic connection with the environment, encompassing not only tangible elements but also emotional, spiritual and cultural dimensions.

Agricolleges International recognises the intrinsic value of "loving the land" and integrates it into its educational programs. Through a curriculum grounded in sustainability principles, students are not only equipped with practical agricultural skills but also instilled with a deep respect for the land and its ecosystems.

Sustainable Practices for Land Preservation

Central to the philosophy of "loving the land" is the adoption of sustainable agricultural practices. Agricolleges International emphasises the importance of responsible land management and ethical farming methods that prioritise soil health, biodiversity and long-term environmental sustainability.

Through innovative research and hands-on training, students at Agricolleges International learn about regenerative agriculture, organic farming techniques and integrated pest management. These practices not only ensure the productivity of agricultural lands but also contribute to mitigating the adverse effects of climate change and preserving natural resources for future generations.

Embracing Stewardship and Responsibility

"Loving the land" inherently entails a sense of stewardship—a recognition of our collective responsibility to care for and protect the Earth. Agricolleges International instils this ethos of environmental stewardship in its students, empowering them to become advocates for sustainable development and guardians of the land.

Through community outreach programs and experiential learning opportunities, students at Agricolleges International are encouraged to actively engage with local farmers, indigenous communities and environmental organisations. By fostering collaborative partnerships and collective action, they work towards creating positive change and preserving the integrity of the land.

The Importance of Loving the Land

The significance of "loving the land" extends far beyond individual actions; it has profound implications for global environmental conservation and social justice. Agricolleges International recognises the interconnectedness of environmental, economic and social factors and strives to address these complex challenges through its educational initiatives.

By promoting sustainable agricultural practices, Agricolleges International contributes to the preservation of biodiversity, the protection of natural habitats and the mitigation of environmental degradation. By empowering marginalised communities and promoting inclusive development, they work towards creating a more equitable and sustainable future for all.

Addressing Climate Change Through Land Love

Climate change poses one of the most pressing threats to our planet's health and sustainability. Agricolleges International understands the critical role that "loving the land" plays in addressing this global challenge and is committed to advocating for climate action and promoting resilient agricultural systems.

Through research and innovation, Agricolleges International explores sustainable solutions to climate change, such as climate-smart agriculture, carbon sequestration, and renewable energy technologies. By equipping students with the knowledge and skills to adapt to changing climatic conditions, they empower future generations to thrive in a rapidly changing world.

Empowering Through Land Love with Agricolleges International

At the heart of Agricolleges International's mission is the empowerment of individuals and communities through education. By providing accessible and inclusive learning opportunities, they enable people from diverse backgrounds to acquire the knowledge and skills needed to build a sustainable future.

Through online courses, workshops and capacity-building programs, Agricolleges International reaches learners around the globe, fostering a community of environmental stewards and change-makers. By harnessing the power of technology and collaboration, they leverage their expertise to address pressing environmental challenges and promote sustainable development worldwide.

Conclusion: Nurturing a Sustainable Legacy with Agricolleges International

In conclusion, "loving the land" is not merely a philosophical concept but a guiding principle for sustainable development and environmental stewardship. Agricolleges International embodies this ethos in its commitment to empowering individuals and communities to cultivate a more sustainable future.

As we navigate the challenges of the 21st century, Agricolleges International stands as a beacon of hope, inspiring action and driving positive change. By embracing the essence of "loving the land" and prioritising education, innovation and collaboration, we can build a world where people and planet thrive in harmony.

Together, let us heed the call to love the land and work towards a future where sustainability is not just a goal but a way of life. With Agricolleges International leading the way, we can cultivate a legacy of stewardship, resilience and abundance for generations to come.

For more information on Agricolleges International, visit our website at www.agricolleges.com or email us on office@agricolleges.com.

The Vision for a Nourished South Africa

We can feed 4 adults with a nutritional, tasty meal for R45.

There is an opportunity for Entrepreneurs to get involved.

In the face of escalating poverty and hunger in South Africa, one innovative solution is making waves - the Food Sock. Born out of the vision of Carl van Blerk, a George local who saw the growing need for an affordable, convenient, and nutritional meal solution, Food Sock is more than just a meal—it's a revolution in addressing food scarcity and malnutrition.

Developed with the assistance of culinarymasters like Chef Francois Ferreira and celebrity Chef Nataniël, Food Sock brings an assortment of nine unique flavours right to your table. It caters to a diverse range of South Africans - from the financially disadvantaged to students, the elderly, and even the affluent who value convenience and nutrition.

Fuelled by the mission of Eden Community Hope Outreach NPC, a non-profit organization, Food Sock is not only changing how we approach meals but also bridging the hunger gap in the poorest communities. For less than R1400 a month, a family of four can receive a nourishing meal every day. Food Sock is more than just a business - it's a movement toward a future where every South African has access to affordable, nutritional food.

Moreover, Food Sock has opened up avenues for entrepreneurial-minded individuals through its unique reseller model. This model offers the opportunity for individuals to launch a profitable venture from their homes, buying stock at reduced prices and selling within their communities. The process is simple, and the impact is profound, empowering South Africans not just with nutritious food, but with an income stream that bolsters local economies.

Transforming E-Waste: Crucial Role of Upcycling in Achieving Zero Waste to Landfill

Jami Nash

In the age of rapid technological advancements, the proliferation of electronic devices has led to a surge in electronic waste (e-waste), posing significant environmental challenges. Among the myriad issues faced in e-waste management, non-recyclable materials emerge as a daunting obstacle.

This article explores the challenges associated with non-recyclable materials in e-waste and delves into the transformative potential of upcycling as a key player in achieving zero waste to landfill and true circularity. By rethinking and redesigning our approach to e-waste, upcycling emerges as a sustainable solution that not only mitigates environmental impact but also adds value to discarded materials.

Challenges of Non-Recyclable Materials in E-Waste

• • Complex Composition: Electronic devices are intricate amalgamations of various materials, each serving a specific function. Non-recyclable materials, often incorporated for their unique properties, pose a challenge due to their complex composition. These materials, such as certain plastics and composites, resist traditional recycling methods, making it difficult to extract valuable components.
  
• • Toxic Components: Some non-recyclable materials in e-waste contain hazardous substances, including heavy metals and toxic chemicals. These pose a threat to both human health and the environment if not properly managed. Disposing of non-recyclable materials in landfills contributes to soil and water pollution, exacerbating the environmental impact.
  
• • Energy-Intensive Processes: The recycling of certain materials demands energy-intensive processes. Non-recyclable materials often require specialized technologies for safe disposal or conversion into reusable forms. The energy consumption associated with these processes can offset the environmental benefits of recycling, raising concerns about the overall sustainability of the e-waste management cycle.
  
• • Lack of Standardization: The absence of standardized processes for handling non-recyclable materials adds to the challenges. Different electronic manufacturers use diverse materials in their products, complicating the recycling process. A lack of uniformity hampers the development of efficient and scalable solutions for managing non-recyclable components.
  
• • Economic Viability: In some cases, the recycling of non-recyclable materials may not be economically viable. Extracting valuable components from these materials often requires sophisticated technologies, making the recycling process expensive. This economic barrier limits the widespread adoption of recycling methods for certain non-recyclable materials.
  

Upcycling as a Solution for Non-Recyclable Materials

• • Redesigning for Upcycling: Upcycling involves the creative repurposing of materials, transforming them into new products with increased value. By incorporating upcycling principles during the design phase, manufacturers can create products that are more easily disassembled, allowing for the extraction of valuable components and the upcycling of non-recyclable materials.
  
• • Value Addition: Upcycling introduces the concept of value addition to discarded materials. Rather than viewing non-recyclable components as waste, upcycling seeks to extract value from these materials, giving them a second life. This approach aligns with the circular economy model, where resources are continuously reused and repurposed.
  
• • Localized Solutions: Upcycling can be implemented on a local scale, offering community-based solutions for non-recyclable materials. Local artisans and innovators can play a crucial role in creating unique, upcycled products that cater to specific market demands. This decentralized approach not only reduces the environmental footprint but also fosters community engagement and entrepreneurship.
  
• • Education and Awareness: Promoting awareness about the benefits of upcycling can lead to a shift in consumer behavior. Educating individuals about the potential of upcycled products and the environmental impact of traditional disposal methods encourages responsible consumption. This increased demand for upcycled goods creates a market-driven incentive for manufacturers to embrace upcycling practices.
  
• • Collaboration across Industries: Achieving true circularity requires collaboration across industries. Manufacturers, designers, and waste management entities can work together to create closed-loop systems that prioritize upcycling. This collaboration fosters innovation in materials design, manufacturing processes, and end-of-life solutions, ultimately reducing the reliance on non-recyclable materials.
  

Rethinking and Redesigning E-Waste Management

• • Extended Producer Responsibility (EPR): Shifting towards a circular economy involves rethinking the entire life cycle of electronic products. Implementing Extended Producer Responsibility (EPR) frameworks holds manufacturers accountable for the entire lifespan of their products. This includes designing for disassembly and upcycling, encouraging a holistic approach to waste management. Innovative Technologies: Investing in innovative technologies is crucial for redefining e-waste management. Advanced sorting and separation technologies can enhance the efficiency of extracting valuable components from non-recyclable materials. Additionally, exploring alternative materials that are more amenable to recycling and upcycling can contribute to sustainable product design.
  
• • Consumer Behavior and Awareness: Educating consumers about the environmental impact of e-waste and the potential of upcycling is fundamental. Governments, NGOs, and businesses should collaborate to create awareness campaigns that emphasize responsible consumption and disposal habits. Informed consumers play a pivotal role in driving demand for upcycled products and influencing manufacturers to adopt sustainable practices.
  
• • Policy and Regulation: Governments can play a proactive role in promoting upcycling by incorporating policies and regulations that incentivize sustainable practices. Providing tax incentives, grants, or subsidies for businesses embracing circular economy principles can spur innovation and accelerate the adoption of upcycling strategies.
  
• • Cross-Industry Collaboration: The transition to a circular economy requires collaboration not only within the electronics industry but also across sectors. Collaborative initiatives involving technology, fashion, design, and manufacturing industries can lead to the development of holistic solutions for upcycling various materials. Cross-industry partnerships foster innovation and open avenues for sustainable practices.
  

Conclusion

In confronting the challenges posed by non-recyclable materials in e-waste, upcycling emerges as a powerful solution that aligns with the principles of zero waste to landfill and true circularity. By rethinking and redesigning our approach to e-waste management, we can transform discarded materials into valuable resources. Upcycling not only addresses the environmental impact of non-recyclable materials but also adds an economic and social dimension to the circular economy. Embracing the philosophy of rethink, redesign, and upcycle, we pave the way for a sustainable future where waste is minimized, resources are maximized, and the circle of consumption is closed.

Xperien: innovation reaching beyond convention

Xperien is revolutionising corporate sustainability with an innovative approach that transcends conventional norms. By redefining the concept of sustainability on a global scale, Xperien is not only fulfilling its corporate responsibility but also emerging as a trailblaser in promoting positive change for people, the planet, privacy, and profit.

This transformative endeavour epitomises Xperien's corporate values while seamlessly aligning with the United Nations' Sustainable Development Goals (SDGs), thus establishing a new benchmark for socially responsible enterprises.

Xperien ITAD specialist Bridgette Neill emphasises the importance of emulating their strategies to foster sustainability, citing various SDGs as guiding principles. "We are actively advancing SDG1 by creating diverse livelihood opportunities for our 89 employees. Through the procurement and refurbishment of used equipment, we embrace the circular economy, generating employment and addressing poverty effectively."

In line with SDG4, Xperien invests in skills development, sending technicians to acquire expertise lacking in Africa. These skills are then utilised in refurbishing computer equipment, significantly narrowing the digital divide in educational institutions.

Neill underscores Xperien's commitment to SDG7 through its utilisation of renewable energy sources, such as a facility powered by 116 solar panels generating 70Kw/h. "This strategic move reflects our ambition to achieve Net Zero emissions by 2045."

As advocates of the UN Women’s Empowerment Principles, Xperien ensures gender equality within its workforce, with women comprising 50% and 40% representation in top management, alongside fair remuneration practices.

"Our extensive history of job creation, spanning 24 years, aligns with SDG8, providing meaningful employment opportunities and supporting economic growth. Furthermore, our initiative to prolong the lifespan of used computers contributes to SDG10 by reducing inequalities through donations that bridge the digital gap and offer affordable computing solutions," she elaborates.

Xperien's approach to e-waste management resonates with SDGs 11 and 12, focusing on sustainable urban development and responsible consumption and production. The company's commitment to circularity prevents e-waste and aligns with SDGs 14 and 15, addressing marine and terrestrial ecosystems.

Significantly, Xperien's collaboration with the UN Global Compact embodies the essence of SDG17, fostering partnerships that promote principles of human rights, labour standards, environmental sustainability, and anti-corruption measures, thereby advancing societal goals on a global scale.

She encourages company executives responsible for IT asset management to comprehend the principles of IT Asset Disposal (ITAD) through an ESG lens. This understanding should encompass regulatory compliance, protection of company information, and adherence to legislative requirements.

"I must also underscore the importance of considering data protection and compliance with laws such as the Protection of Personal Information Act 2013 (PoPI 2013), the National Environmental Waste Management Act 2008 (NEMWA 2008), and the Consumer Protection Act 68 of 2008 (CPA)," says Neill.

The influx of new technology results in a corresponding increase in decommissioned IT assets, leading to a fragmented approach to refreshing old assets. This can range from auctions and staff sales to scrapping storeroom-bound computers without proper consideration for data protection or the elimination of data from old computers.

To tackle these challenges, Neill suggests that companies can offset the cost of a secure IT asset-disposition program by recognising its potential savings.

"Retire your technology assets wisely by engaging a third-party specialist with deep experience in secure IT asset disposition. This trusted partner can help articulate the secure-asset disposition plan's return on investment to budget-minded superiors and provide comprehensive documentation of the disposal process, ensuring compliance with security regulations," she advises.

As companies gear up for the influx of new equipment with the new financial budget, Xperien advocates commencing with a clean sheet, addressing data risks, and unlocking opportunities for financial governance and social projects through secure IT asset disposal with a focus on ESG principles.

Navigating the Green Road: how education and research are shaping sustainable logistics and transport

Catherine Larkin APR CMILT, Executive Director: Chartered Institute of Logistics and Transport: South Africa (CILTSA)

The global logistics, transport, and supply chain (LTS) industries are the backbone of our interconnected world, facilitating the movement of goods and people across continents. However, their operations also contribute significantly to environmental challenges, including greenhouse gas emissions, air and water pollution, and resource depletion. Addressing these concerns requires a fundamental shift towards sustainable practices. Education and research play a critical role in driving this transformation.

The Chartered Institute of Logistics and Transport (CILT) recognises the urgency of this transition and is actively engaged in promoting sustainable practices within the LTS sector. Through its diverse range of educational offerings, research initiatives, and advocacy efforts, CILT is empowering professionals and organisations to navigate the green road towards a more sustainable future.

The environmental footprint of LTS

The environmental impact of the LTS sector is undeniable. According to the International Transport Forum, the transport sector alone accounts for approximately 23% of global energy-related CO2 emissions, with freight transport being the largest contributor. Additionally, it is a major source of air and water pollution, noise pollution, and habitat fragmentation. These environmental consequences pose significant threats to public health, ecosystems, and long-term economic prosperity.

Education: Equipping the workforce for sustainability

Building a sustainable future for LTS requires a skilled workforce equipped with the knowledge, understanding, and competencies to implement and manage environmentally friendly practices. CILT addresses this need by offering a comprehensive range of educational programmes and resources that integrate sustainability principles throughout the curriculum.

Courses and qualifications: CILT offers a variety of courses and qualifications that cover topics such as sustainable logistics, green supply chain management, and environmental impact assessment. These programs equip professionals with the necessary expertise to identify and implement sustainable solutions within their organisations.

Continuing professional development (CPD): Recognising the ever-evolving nature of the sustainability landscape, CILT provides ongoing CPD opportunities for professionals to stay updated on the latest advancements and best practices in sustainable LTS.

Learning resources: CILT offers a wealth of learning resources, including publications, webinars, and online tools, that provide accessible and informative content on various aspects of sustainable LTS such as those that can be found at https://ciltinternational.org/news/catch-up-with-our-sustainability-and-green-technology-resources/

By equipping professionals with the necessary knowledge and skills, CILT empowers them to become agents of change within their organisations, driving the adoption of sustainable practices and contributing to a greener future for the sector.

Research: Illuminating the path to sustainability

Effective solutions for addressing environmental challenges require a strong foundation in research and development. CILT actively supports and promotes research initiatives aimed at advancing sustainable practices within the LTS sector.

Funding research projects: CILT provides financial support and resources to researchers investigating innovative solutions for reducing the environmental impact of logistics and transport operations.

Facilitating collaboration: CILT fosters collaboration between academia, industry, and policymakers to share knowledge, expertise, and best practices in sustainable LTS research.

Disseminating research findings: CILT actively disseminates research findings through publications, conferences, and workshops, ensuring that the latest knowledge reaches practitioners and policymakers who can translate it into tangible action.

Through these research efforts, CILT plays a crucial role in identifying and promoting innovative solutions, such as:

• • Low-emission technologies: Research into electric vehicles, hybrid propulsion systems, and alternative fuels holds immense potential for reducing emissions from the transportation sector.
  
• • Sustainable infrastructure: Optimising infrastructure design and promoting modal shifts towards more energy-efficient modes of transport like rail can significantly reduce the environmental footprint of the sector.
  
• • Circular economy principles: Integrating circular economy principles into supply chains can minimize waste generation, promote resource efficiency, and reduce the environmental impact of resource extraction and disposal.
  
• • Advocacy: Shaping policy and regulation: Beyond education and research, CILT actively engages in advocacy efforts to influence policy and regulatory frameworks that promote sustainable practices within the LTS sector.
  
• • Engaging with policymakers: The Institute collaborates with policymakers at national and international levels to advocate for policies that incentivise sustainable practices, such as carbon pricing schemes and investment in green infrastructure development.
  
• • Promoting industry standards: CILT participates in the development and implementation of industry standards that promote environmental sustainability within the LTS sector.
  
• • Raising public awareness: The Institute raises public awareness about the environmental impact of the LTS sector and the importance of adopting sustainable practices for a healthier planet.
  
• • CILT's Initiatives in Action: CILT's commitment to sustainability is evident through various ongoing initiatives happening internationally, particularly in the United Kingdom:
  
• • The Sustainability and Green Agenda project: This initiative aims to raise awareness about the importance of sustainability within the LTS sector and provide resources to help organisations implement sustainable practices.
  
• • The "Generation Logistics" programme: This programme engages young professionals in the LTS sector and encourages them to become champions of sustainability within their organisations.
  
• • The "Routes to Net Zero 2050" report: This report by CILT UK explores the challenges and opportunities for the LTS sector in achieving net-zero emissions by 205o.
  
• • The “Nurturing Sustainable Practices in Logistics and Transport Organizations for Resilient Supply Chains”, a paper by members of CILT Zimbabwe published in 2020- https://ciltinternational.org/wp-content/uploads/2021/06/CILT-Sustainability-Paper.pdf
  

In conclusion, education and research play a vital role in driving environmental responsibility within the logistics, transport, and supply chain industries. The Chartered Institute of Logistics and Transport (CILT) is at the forefront of promoting sustainability through its educational programs, research initiatives, advocacy efforts, and industry partnerships. By fostering a culture of innovation, collaboration, and continuous learning, CILT is empowering industry professionals to embrace environmentally responsible practices and lead the way towards a more sustainable future for all.

Gender equality: why it’s important for Africa

Professor Parmi Natesan, CEO, of the Institute of Directors in South Africa

Getting more women involved in business will help the continent realise its potential—and workplace equality will inevitably lead to change across society.

Businesses across the globe have progressively recognised the importance of promoting gender equality within the workplace, understanding that an increased representation of women correlates with a multitude of beneficial outcomes. This principle extends beyond just the corporate domain, suggesting that enhancing female participation in all aspects of society could lead to more efficacious and sustainable operations. The interplay between gender equality and organisational success is founded on the notion that economic empowerment, leadership roles, and financial successes for women can fundamentally reshape societal structures.

The transformative potential of gender equality is particularly pertinent in the business sector, where economic influence often extends into broader societal impacts. Empowering women to excel in business—through earning, leading, and innovating—instigates a shift in societal dynamics, creating environments where both businesses and communities can flourish through sustainable practices. Thus, the link between gender equality and sustainability is not only intuitive but essential for future prosperity.

In the context of corporate governance, South Africa’s King Reports serve as a benchmark for sustainable organisational practices.

The latest edition, King IV, emphasises the importance of diverse and balanced board composition, linking ethical leadership with organisational success. By championing gender diversity, King IV recognises the crucial role women play in guiding companies towards sustainable growth and societal benefits.

King IV thus sees board composition as crucial to providing the right mix of people to guide the organisation successfully in an increasingly complex environment. Genuine diversity is crucial to realising this goal, and gender is seen as a crucial factor in achieving diversity. Recommended Practice 11 thus suggests that the governing body “set targets for race and gender representation in its membership”.

There is a growing body of research that links organisational performance with diversity. Research from the Boston Consulting Group long since provided the link between companies with a more diverse leadership team and above-average revenue from innovation. This research also established a link between diversity and prospects for future growth.[1]

More recently, out of many other examples, McKinsey & Co’s report, “Diversity matters even more: The case for holistic impact”[2] indicates that top-quartile companies have more diverse (in terms of gender and ethnicity) executive teams. In fact, the greater the representivity, the higher the likelihood for higher performance: companies with more than 30% of female executives are more likely to outperform companies with lower percentages. The same principle holds good for ethnic diversity.

The case for diversity is strong

The case for diversity, which pre-eminently includes gender representivity given the fact that women make up roughly half of humanity, is solid. Here though, it is worth noting that diversity cannot be a tick-box exercise: it’s not the fact of being female, per se, that makes a woman valuable in the workspace, but the different viewpoints and experiences she brings. The same point can be made of other components of diversity such as race and age: always the key criterion must be what the governing body needs to do its job more effectively.

Aside from governance frameworks like King IV, the beneficial effects of female participation in business are recognised in the regulations of the Johannesburg Stock Exchange, which requires a policy and targets for gender diversity on boards.

By adding a different dimension to the way business decisions are made, women can make companies more successful and sustainable over the long term. Research shows that women make decisions differently from men—and may even make decisions better. For example, research shows that when competing interests are at stake, women are better at making fair decisions.[3]

The benefits of female participation we have seen in business surely hold good for politics and society more generally. At base, politics is all about balancing competing claims as fairly as possible. For that reason, one can safely assume, that the Southern African Development Community (SADC) has established a protocol urging member states to ensure “equal and effective representation of women in decision-making positions in the political, public and private sectors.”[4]

In theory, at least, we can hope that greater female participation in Africa will enable the continent to make better decisions regarding the continent’s urgent needs. While several African countries are growing strongly, conflict is still rife across the region. The benefits of the former will not fully be realised unless the latter is curbed.

There is one particularly difficult set of decisions Africa has to make that will determine its future. These relate to the transition to green energy, pitting environmental sustainability against economic and thus social sustainability. Africa is seriously deficient in the reliable, plentiful energy needed to enable the continent to realise its considerable economic and human potential. It also has abundant reserves of the fossil fuels needed to supply that energy—and yet many Africans accept the need to support global efforts to decarbonise energy. How to balance the conflicting imperatives of energy security and energy decarbonisation will take great wisdom—and better representation of women at the highest levels could help negotiate these tricky currents.

In conclusion, though, one has to note that Africa’s progress towards gender parity in business and society remains patchy. In 2018, women made up over 50% of the population but generated only 33% of GDP, and it has a low Gender Parity Score, as indicated in a 2019 McKinsey report.[5] If it improved its performance in gender parity at a best-in-region rate, the report estimated it could have added $316 billion to annual GDP by 2024.

The figures matter less than the principle. Africa must not continue missing out on the potential that its women have to offer in both the economy and society and politics more broadly.

References

• • [1] Rocío Lorenzo, Nicole Voigt, Miki Tsusaka, Matt Krentz, and Katie Abouzahr, “How diverse leadership teams boost innovation” (23 January 2018), available at https://www.bcg.com/publications/2018/how-diverse-leadership-teams-boost-innovation.
  
• • [2] McKinsey & Company, “Diversity matters even more: The case for holistic impact” (5 December 2023), available at https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-matters-even-more-the-case-for-holistic-impact.
  
• • [3] “Women make better decisions than men, study suggests”, Science Daily (26 March 2013), available at https://www.sciencedaily.com/releases/2013/03/130326101616.htm.
  
• • [4] SADC website, see https://www.sadc.int/pillars/women-politics-decision-making.
  
• • [5] McKinsey Global Institute, “The power of parity: Advancing women’s equality in Africa” (24 November 2019), available at https://www.mckinsey.com/featured-insights/gender-equality/the-power-of-parity-advancing-womens-equality-in-africa.

Youth Capacity Building Programme in KwaZulu-Natal Produces Qualified Energy Professionals

T  he youth capacity building programme in KwaZulu-Natal has achieved a significant milestone with students now qualifying as Quality Council of Trades and Occupations (QCTO) EPC Practitioners (Energy Performance Certificates for Buildings). These students are now actively engaged in the industry, supporting their mentor companies. Over the past year, they have completed on-demand training modules for the Energy Efficiency Technician, preparing them for their international Energy Auditor Certification examination.

This week, the students are attending classes at Durban University of Technology (DUT) in KwaZulu-Natal. They are undergoing training and preparation workshops for the Association of Energy Engineers (AEE)'s Certified Energy Auditor (CEA) Certification, an internationally recognised qualification. Louis Lagrange, an AEE-accredited trainer, is leading the training sessions.

Financial support for the programme comes from the Energy Water Sector Education and Training Authority (EWSETA) in South Africa, as well as AEE in Atlanta, Georgia, USA. All students also receive membership of the local AEE Chapter, the South African Energy Efficiency Confederation (SAEEC), an organisation representing energy professionals.

The students have already made a positive impact at their host companies, as reported during the EWSETA Monitoring and Evaluation visits. Mentorship plays a crucial role in the success of such programmes, and the dedication of the mentors is evident in the knowledge-sharing and support provided to the students as they develop their careers in the energy sector.

The Institute of Energy Professionals Africa NPC (IEPA) has been successfully delivering turnkey youth capacity-building projects for a decade, with excellent results. IEPA is committed to making a difference in the skills of individuals, young or old, and is an authorized training partner of AEE for Sub-Sahara Africa. IEPA is also a QCTO-accredited training provider.

For more information on training and skills programmes,
visit www.iepa.org.za.

South Africa's mining sector faces unprecedented challenges from both the physical impact of climate change and transition risks. Responding to climate change responsibly, presents significant opportunities for positive disruption across the sector, and a just transition in South Africa and the broader continent.

According to Minerals Council South Africa, in 2022, the mining sector contributed 7.3% to South Africa’s GDP (R483 billion) and employed over 469,000 workers. In the same year, mineral exports amounted to R882 billion, equivalent to almost 14% of GDP. This valuable contribution could be at risk as the physical impacts from climate change, such as floods, droughts, extreme weather events and rising temperatures, become more widespread. There is also a risk to businesses, that as the economy decarbonises, they could be left behind if they also fail to transition to low carbon operations.

What are South Africa’s physical climate change risks?

Prolonged droughts and increased water-scarcity are a particular concern for South Africa. These risks can disrupt extraction processes and affect ore processing and output. The ripple effect extends to increased operational costs, potential job losses and heightened competition for water resources with local communities. Mines that rely on water-intensive methods find themselves particularly vulnerable, facing production constraints that impact their ability to meet demand.

Likewise, flooding and severe storms can damage on-site and supporting infrastructure, such as roads, railways and ports. Not only can these lead to an increase in direct costs due to damages, but can also lead to disruptions in production, increased operational costs and capital costs. This is partially concerning for South Africa, as a 1.5C warmer world globally will translate into a 3C rise in southern Africa. This makes South Africa’s mining sector more exposed to the physical risks of climate change compared to the global average.

What are South Africa’s mining transition risks?

At the same time, several of South Africa’s key trading partners are beginning to implement policies and regulations to combat climate change. This will create a shift in international demand and international trade, creating transition risks for the sector. South Africa currently depends on fossil fuel exports, and carbon-insensitive mining and electricity sectors, exposing it to significant transition risks. If these are not addressed, the country will suffer from reduced exports, a dip in international competitiveness and GDP, and lost jobs.

Shifting international demand will put two of South Africa’s four largest commodities at risk; Platinum Group Metals (PGMs), and coal. In 2019, these two commodities accounted for about 50% of the country’s total mining sales, at an estimated value of R264 billion. They also provided 266,000 direct jobs.

Short-term, the global demand for coal is likely to remain stable, but increasing pressure to phase it out is likely to see a demand drop in the next 10 to 15 years. PGMs will also face shifting demand patterns, with an expected decrease in demand as the world transitions from internal combustion engines to battery electric vehicles. However, there is potential for increasing demand for PGMs as they are used in green hydrogen fuel cells.

The mining sector will also face increasing international trade risks, especially from the European Union’s Carbon Border Adjustment Mechanism (CBAM). The CBAM is essentially a carbon tax on imports to the EU based on their embedded greenhouse gas (GHG) emissions. Initially, the CBAM will cover fertilisers, electric energy production, cement, aluminium, hydrogen, iron and steel, as well as some critical input materials like iron ore, with additional products to be added after 2026. According to a TIPS report, the CBAM will put a total of R52 billion (based on 2022 data) worth of exports at risk. This has direct implications for South Africa’s iron ore, iron, steel and aluminium exports and by extension, our international competitiveness, balance of payments, jobs and GDP growth.

What are the opportunities? How can companies take advantage of these?

Addressing these risks, both physical and transition, are important but they also present opportunities.

Forward thinking businesses could use the climate crisis to kick-start South Africa’s just transition and contribute to broader sustainable development across the African continent. The mining sector should embrace the transition as a positive disruption opportunity in and of itself. It presents an opportunity for holistic business transformation and positive social contributions beyond just corporate taxes and royalties.

Adapting to the physical impacts of climate change can provide environmental and social co-benefits. For example, investing in strategic wetland rehabilitation or conservation could support flood mitigation at a mine site and benefit neighbouring communities, avoiding both flood damage and production delays. The same wetland could provide other ecosystem services, such as promoting biodiversity, fishing, and small-scale farming opportunities for local communities. In fact, most climate adaptation interventions have environmental and social co-benefits that enable positive socio-economic opportunities.

A climate-resilient business also reports their GHG emissions annually, which helps them to monitor progress towards their decarbonisation targets. Reducing emissions is a win-win-win for any mining company. Firstly, it helps avoid future climate change impacts. Secondly, it avoids exposure to transition risks, such as carbon taxes, and provides cost saving opportunities. Lastly, it provides a competitive advantage in a low-carbon global economy.

Mining companies in South Africa also need to consider the risks and opportunities hidden in their commodity portfolios. They should consider shifting their portfolios in line with critical mineral demand forecasts to tap into new value pools and build new value chains. Multistakeholder collaboration will be critical for building new “green metal value chains” and supporting infrastructure. Investing in new sustainable industries has various socio-economic co-benefits beyond new export markets and direct job opportunities. These co-benefits can support and enable a just transition more broadly across South Africa and the wider continent.

Strategically thinking about and responding to climate change risks and opportunities can give the South African mining sector the upper hand. While the sector faces unprecedented challenges in the face of climate change, it is also presented with a unique opportunity to reinvent itself through positive disruption. But opportunity alone is not enough - acting on climate risks and opportunities is positive disruption.

Impact of climate change on South Africa’s mining industry, what are the risks and opportunities for business?