western cape government green economy report 2018 econo… · western cape government environmental...

Western Cape Government Green Economy Report 2018

Western Cape Government Environmental Affairs and Development Planning | Green Economy Report 2018

i

About this RepoRtThis is the fifth Western Cape Government (WCG) Green Economy Report. This report aims to:

• Provide stakeholders with a solid basis for assessing the Western Cape Government’s work in the

Green Economy; and

• Contextualise the WCG policy and strategy response to the Green Economy.

The report:

• Identifies the Green Economy issues that are most material to the Western Cape, focusing on the

role for provincial government specifically; and

• Prioritises report topics in line with the Green is Smart Strategy Framework and the Western Cape

Green Economy Indicators.

The scope of this report covers work undertaken and progress achieved under the WCG Green is

Smart Strategy Framework for the financial year beginning on 1 April 2018 and ending on 31 March

2019. It has been structured so as to give the general context of the Green Economy and then

review the five component sections of the table of indicators, namely i) The Natural Resource Base;

ii) Resource Productivity; iii) Socio-economy iv) Environmental quality of life; v) Policy & Finance.

This was the fifth year of targeted Green Economy (GE) projects in the Western Cape.

Due to the nature of the data that is required for the Western Cape Green Economy Indicators, there

is a reporting lag of at least one year for most of the indicators. As a result, most of the sector data

is for the 2016/17 calendar year; where this is not the case, the most recent year is provided. The

WCG Department of Environmental Affairs and Development Planning (DEA&DP), Chief Directorate:

Environmental Sustainability would like to acknowledge all colleagues and stakeholders who have

contributed to this report.

AcknowledgementsDepartment of Environmental Affairs and Development Planning

Gray Maguire (lead author); Karen Shippey; Ronald Mukanya; Francini van Staden; Vera Mukasa;

Khuthala Swanepoel; Lize Jennings-Boom; Eddie Hanekom; Albert Ackhurst; Shereen Pearson (layout)

Department of Economic Development and Tourism

Anzel Venter; Helen Davies

Department of Agriculture

Francis Steyn; Ferdie Endemann; Andrew Partridge

Department of Social Development

Gavin Miller; Nosisi Dingani; Marisa Lombaard

Department of Transport and Public Works

Corine Gallant

City of Cape Town

Sivuyile Jokazi

GreenCape

Raldo Kruger; and all authors of the 2018 GreenCape Market Intelligence Reports.


ii

list of AbbReviAtions

coct City of Cape Town

csiR Council for Scientific and Industrial Research

deA&dp Department of Environmental Affairs and Development Planning

dedAt Department of Economic Development and Tourism

doA Department of Agriculture

dlg Department of Local Government

dotp Department of the Premier

dti Department of Trade and Industry

dtpw Department of Transport and Public Works

dws Department of Water & Sanitation

edp Economic Development Partnership

eiA Environmental Impact Assessment

eiif Ecological Infrastructure Investment Framework

epwp Expanded Public Works Programme

gdp Gross Domestic Product

ge Green Economy

hod Head of Department

ict Information and Communications Technology

iclei Local Governments for Sustainability

idZ Industrial Development Zone

ipp Independent Power Producers

iRp Integrated Resources Plan

issd International institute for Sustainable Development

lng Liquified Natural Gas

miR Market Intelligence Report

mRf Materials Recovery Facility

ngo Non-Governmental Organisation

peRo Provincial Economic Review and Outlook

ppA Power Purchase Agreement

psg Provincial Strategic Goal

psp Provincial Strategic Plan

pt Provincial Treasury

Re Renewable Energy

Reipppp Renewable Energy Independent Power Production Procurement Programme


iii

sAlgA South African Local Government Association

seZ Special Economic Zone

sidAff Sustainable Infrastructure Development and Finance Facility

soeoR State of Environment Outlook Report

sseg Small Scale Embedded Generation

stem Science, Technology, Engineering and Mathematics

swcmA Strategic Water Catchment Management Area

wcccRs Western Cape Climate Change Response Strategy

wcg Western Cape Government

wcwss Western Cape Water Supply Strategy

wisp Waste Industrial Symbiosis Programme

wwf Worldwide Fund for Nature


iv

contents1. InTRoDuCTIon: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.1. The backdrop: The Provincial Economic Review & Outlook (PERO) . . . . . . . . . . . . . . . . . . . . . . 2

2. DEvEloPmEnTS In ThE GREEn EConomy: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2.1. Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2.2. South Africa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

3. WESTERn CAPE GREEn EConomy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3.1. Natural resource Base. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3.2. Resource Productivity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.3. Socio-economic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.4. Environmental Quality of Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.5. Policy & Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

4. ConCluSIon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

4.1 Western Cape Green Economy Indicators: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

5. APPEnDIx 1: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

5.1 Additional Notes on Green Economy Indicators Definitions and Scope. . . . . . . . . . . . . . . . . . . 15

6. REFEREnCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17


1

The last year in between Green Economy reports has been a tumultuous year from an environmental

perspective to say the very least. At a global level the IPCC Special Report on Global Warming

triggered a new level of urgency in responding to the global climate crises with the years 2015 to

2018 being the hottest ever recorded. South Africa and the Western Cape in particular, fell under

global media scrutiny when the City of Cape Town became one of the first Metropolitan cities to

potentially run out of water.

Issues of ocean pollution and biodiversity loss became commonplace topics of conversation as

respected research reports such as the WWF’s Living Planet Report (WWF 2018) showed population

sizes of wildlife having decreased by 60% globally between 1970 and 2014. At the same time increasing

dissatisfaction with inequality and slow economic growth has seen an increase in political populism.

Yet nature underpins our economic activity, with total annual ecosystem services are worth $125

trillion of value (WWF 2019) without which no economic activity at all is possible. This dependency is

part of the explanation why the 2019 WEF Global Risk Report finds that environmental risks account

for 4 of the 5 most likely global risks.

In 2016 we saw fossil fuels and renewable energy subsidies become financially equivalent for the

first time resulting in unprecedented growth in the green jobs sector. That said, the transition to

greener technologies has not moved fast enough for our economies to remain out of danger. What is

required is a redoubling of efforts to build on our successes and achieve an economy that improves

human well-being, promotes social equity and reduces environmental risk. As the successes show,

green economic activities create more jobs, offer better investment opportunities, reduce the risk

of stranded assets, and promote sustainable development.

WASTE TRIkES FoR InFoRmAl RECyClERS 29 mARCh 2019

1 intRoduction


2

the bAckdRop: the pRovinciAl economic Review & outlook (peRo)

Despite the technical recession at the start of the 2018 financial year (the second since the early

1990s) the South African economy grew by 1,4% in the fourth quarter of 2018, contributing to an

overall growth rate of 0,8% for the entire year. The 2018 recession spanned the first two quarters

of the year, with the economy shrinking by 2,7% in the first quarter and contracting further by 0,5%

in the second. Despite the 3,3% contraction however, positive growth was observed in the third

(2,6%) and the fourth (1,4%) quarter and was just enough to push the overall growth rate for the

year into positive territory to 0,8%. A result indicating that the growth rate decreased from 1,4% in

2017 but increased from 0,4% in 2016 (StatSA 2019).

At a national level a sharp 17.7% rebound in value added by the agriculture, forestry and fisheries

sector was welcomed as much of the country (with the exception of the Western Cape) made a

recovery from the drought.

The growth rate in the Western Cape was subdued in 2018 as a result of the drought and the difficult

national economic circumstances, with the previous fastest growing sector, namely agricultural

processing, suffering the worst impacts of the drought. This context of bleak economic growth

prospects combined with increasing unemployment and increased demand for public services

requires innovative service delivery models and presents both a challenge and an opportunity for

the Green Economy.

This report touches on significant investments from all three tiers of government in the Saldanha

IDZ, the Atlantis SEZ, in various Strategic Water Catchment Management Areas (SWCMA’s) across

the province and in service support infrastructure that all represent a province in the process of

turning a crises into an opportunity.

1.1


3

ImAGE SouRCE: DEPARTmEnT oF AGRICulTuRE - lAnDCARE

2 developments in the gReen economy

globAl

Internationally, the Green Economy is increasingly prioritised in light of climate change. While this

has largely been driven by first world cities, many key aspects can be adopted from international

examples. In other countries, the Green Economy is being used as the approach to address other

challenges such as elevated air pollution that affect health and environmental degradation to the

extent that natural systems are unable to function (WWF 2019).

According to the WWF while energy demand worldwide is still on the rise, the only major energy

sources that show signs of decline in production are conventional oil and coal. Discoveries of new

conventional oil reserves hit a record low in 2017. The coal sector is facing eroding profitability

too with the world’s largest coal producer Glencore, pledging to limit its coal production and re-

prioritise investment in other commodities needed as part of a transition towards cleaner energy

and transportation. This follows on from a slew of bankruptcies in both American and Chinese coal

companies (WWF 2019).

The integration and popularisation of

concepts such as Johan Rockstrom’s

“Planetary Boundaries” (Rockstrom

2009) and Kate Raworths’ “Doughnut

Economics’ (Raworth 2012) reflects a

growing acceptance that economic

development must take place within

the earth’s natural resource and system

boundaries. The Green Economy is

central in enabling this change and

there is rapid growing support for a

transition to a more efficient market-

friendly manner of conducting global

economic affairs. The Western Cape

2.1

Figure 1: Delegates at PAGE


4

Government was pleased to be able to engage on these topics on a global stage during the annual

Green Economy Coalition and Inter-Ministerial Partnership for Action on Green Economy (PAGE)

held in Cape Town in January 2019 (Fig. 1).

Similarly, the wide spread adoption of the 17 Sustainable Development Goals (SDGs) and their 231

supporting indicators in not only the public sector, but private sector practice provides evidence

of a changing global agenda. Targets set under the Nationally Determined Contributions (NDCs)

required by the Paris Agreement and the increasing use of the five capitals model provide an excellent

framework for the transition to the Green Economy, all of which is clearly reflected in the meteoric

rise in the global issuances of “green” and “sustainability” bonds (CBI 2018).

0

uS

D B

illio

ns 50

100

150

200

Label diversification is increasing beyond green bonds

Included green labelled deals

Social bonds

Sustainability bonds

other excluded

2013 2014 2015 2016 2017 2018

Figure 2: Growth in Sustainability/Green bonds (CBI 2018)

south AfRicA

The National Department of Environmental Affairs has defined the Green Economy as a “system of

economic activities related to the production, distribution and consumption of goods and services

that result in improved human well-being over the long term, while not exposing future generations

to significant environmental risks or ecological scarcities” (DEA 2018). This agenda was given further

support in 2018 by the signing of the 27 Power Purchase Agreements (PPA’s) remaining from the

stalled previous Renewable Energy Independent Power Producer Procurement Programme (REIPPPP)

bid window in 2015. Additionally, the draft Integrated Resources Plan (IRP) for electricity presently

places heavy reliance on new wind, solar PV and gas capacity and energy from independent power

producers (IPPs) for the years ahead, and limits the use of new coal and new nuclear in the energy

mix. The net impact of this has been a slow, but steady decrease in the carbon intensity of the

country’s electricity generation.

South Africa is one of the strongest proponents of the Green Economy in Sub Saharan Africa and

has one of the most developed approaches. While there is currently no national Green Economy

strategy, there are multiple policy documents that support and help drive the Green Economy.

From the social compact of 2011, the Green Economy Accord and the Carbon Tax, to the National

Strategy for Sustainable Development and Action Plan (2011-2014), the New Growth Path (2020)

and National Development Plan (2030); the country has firmly committed to a just transition to a

“low-carbon, resource-efficient and pro-employment development path”.

2.2


5

The Western Cape is increasingly being recognised as a place of Green Economy success examples

and there appears to be a growing understanding in government of the sectors' value. The Green

Economy is becoming increasingly entrenched in policy and legislation, both nationally and provincially.

Whilst parts of this growth have been due to the energy security and water crises, the Green Economy

contribution in responding to the crises has highlighted the value that it is able to add in building

the resilience of the economy as a whole.

The Green Economy Working Group, which falls under Provincial Strategic Goal 1 and is chaired by

DEDAT’s Chief Director: Green Economy, reports annually on the specifics of the individual projects

funded by the Provincial Green Economy budget allocation, with key highlights mentioned below.

The Provincial Biodiversity Economy Strategy (PBES) was informed by recommendations that

emerged from implementation of the Western Cape Eco-Invest project, an initiative that was

concluded within the DEA&DP Green Economy Programme in March 2015. Phase 1 of the Western

Cape Eco-Invest project investigated priority ecosystems and their potential to leverage private

sector investment into biodiversity and ecosystem goods and services. This was followed by the

second phase of the project which assessed the state of readiness of a number of identified priority

nature-based economy supply chains in the province. Phase III explored and consolidated findings

from Phase I and II culminating in the establishment of the Biodiversity Economy Strategy. The

strategy sets out required actions to unlock key identified biodiversity economy value chains. The

strategy was finalised in 2016 and the implementation plan approved in March 2017. The transversal

initiatives being implemented in the Province by the Sub-Directorate: Biodiversity was funded mostly

through the Green Economy allocation, this includes:

• Development of a Provincial Ecological Infrastructure Investment Framework (EIIF) including

biomass economies;

• Payment for Ecosystem Services (PES) in the Keurbooms & Karatara catchments;


3 westeRn cApe gReen economy


6

• Developing business concepts and sustainability planning for the Bitou Agroforestry and Natural

Products projects – two communities attended training on Business development and agro-

processing;

• Developing a community of practice for the honeybush industry & preparation of guidelines for the

sustainable harvesting of wild honeybush;

• Baseline Assessment of the Wild Bee Populations Value and Risks; and,

• Cost and Benefit Analysis for the Breede River Estuary.

In the water sector the partnership between GreenCape and the Department of Agriculture (DoA)

on the integration of the SMARTAgri and ClimateAgri programmes has introduced a range of

reforms to practice that promote a climate-resilient low carbon production system that is productive,

competitive, equitable and ecologically sustainable across the value chain. This has been achieved

through priority programmes aimed at the roll-out of a broad range of conservation agriculture

initiatives, farm level support for water and energy efficiency as well as the development of an

integrated knowledge system for climate smart agricultural extension.

The DEDAT led partnership between the CoCT, GreenCape, DEA&DP, EDP and Wesgro on the

Business Water Resilience Support programme led to multiple business support initiatives. A series

of one on one industrial workshops were held focusing on developing processes for tariff relaxation

for businesses in financial stress. Multiple events with municipalities have acted in support of this on

systemic issues relating to regulatory & financing clarity as well as decentralisation of water supply.

The ongoing uncertainty with regards to energy supply both nationally and within the province has

been met with a LNG promotion programme aimed at improving the Provincial energy mix through

the use of the lower carbon Liquified Natural Gas (LNG). Similarly, Green Economy funding has been

directed towards the promotion of the uptake of Small Scale Embedded Generation (SSEG) and

the promotion of energy efficiency retrofits.

The recognition of public procurement as a key driver of socio-economic and ecological change has

also established a firm foothold during the 2018/19 financial year. Partnerships with the International

institute for Sustainable Development (ISSD), WWF, ICLEI, DoTP, DEDAT, PT, and DLG have led to

the integration of Total Cost of Ownership principles at the heart of the provincially based Economic

Procurement Policy as well as the Sustainable Infrastructure Development and Finance Facility

(SIDAFF). This has been further supported by the Green Procurement Implementation Programme

(GPIP) which has seen the DoHS develop a Green Procurement framework for low-cost housing

that is now being rolled out across the Province.

nAtuRAl ResouRce bAse

The increasing pressure on the surface water supply system due to extremely low winter rainfall

between 2015 and 2018 necessitated a rapid business-unusual response from local and provincial

government authorities. Partnering with the private sector, officials developed a range of response

measures, from fodder relief, to pressure management, emergency augmentation and water re-use

on an unprecedented scale. The City of Cape Town in particular went from using over 200 litres

a person a day at the end of 2016 down to less than 125 litres a person a day at the height of the

drought, including residential and industrial use and water lost to leaks.

3.1


7

Additional large-scale alien vegetation clearing programmes are being rolled out to improve water

availability and create jobs in the province for a number of years under national projects. Recent efforts

have focused on coordinating the planning and implementation of the clearing efforts toward a more

effective water management strategy allowing various stakeholders an opportunity to contribute.

DEA&DP has been greatly supported in alien clearing efforts by the invaluable work of organisations

such as:

• The Nature Conservancy - the Greater Cape Town Water Fund,

• The CSIR - the Ecological Infrastructure Investment Framework (EIIF),

• WWF - the Water Stewardship programme

Along with a number of other NGO and private sector partners.


It is thanks to work such as this that despite not having an increase in the capacity of our bulk water

supply system for the years reported on in the indicators, that the WCG is working towards securing

more water in our existing infrastructure, as shown in figure 2 below.

In support of this, 12 918 hectares of private land were rehabilitated in the 2016 year with the support

of LandCare projects, funded by the LandCare grant, EPWP grant and Department Equitable Share

funding. This not only frees up water runoff, but also reduces fire risk and promotes biodiversity.


8

unit Cost (uRv in Rand/m3)

Additional Water (mm3/year)0 10 20 30 40 50 60

Catchment restoration increases water supply at the lowest unit cost

Removal of IAPs in 7 Priority Sub-Catchments

Desalination

Groundwater Exploration

Water Reuse

voelvlei Storage Scheme

Cease Forestry Steenbras

Figure 3: Water supply gain and unit cost (URV) comparison between different catchment restoration and other supply options in the Western Cape (including raw water treatment costs where applicable) (TNC 2018)

ResouRce pRoductivity

The water crisis that occurred between 2015 to 2018 drove large-scale change in the water sector.

Water efficiency in businesses and households improved significantly in response to both the

restrictions and water tariffs. This response was, however, markedly different between different

municipalities in the Western Cape, depending on the drought status and municipal response in each

municipality. There is uncertainty around the degree of ‘bounce back’ of water use that will occur

following the water crisis, but trends are showing that some permanent change towards heightened

efficiency has occurred. While businesses that have made efficiency improvements are unlikely to

revert to business as usual there is still significant room for improvement in the business sector. As

far as the commercial sector in Cape Town's CBD is concerned, tenants only reduced their water

use by 10%, while the industrial sector managed to reduce theirs by 30%.

While the official GreenDrop score from the national Department of Water & Sanitation (DWS)

remains unavailable, it is encouraging to see that operational compliance for the Province’s effluent

treatment facilities was 93.6% for the 2016 year.

With regards to waste, the province has achieved its 5 year target of 20% landfill diversion by 2019

with the present value standing at 26.7%. GreenCape’s waste Market Intelligence Report (GreenCape

2018) estimates a provincial waste production figure of roughly 7.7 million tonnes of waste annually

however, of which 3.6 million (47%) consists of commercial and industrial waste. The remaining 4.1

million tonnes (53%) is municipal solid waste (MSW). Of the total for the province, the City of Cape

Town (CoCT) generates a substantial portion (48%) of the waste, which includes 2.8 million tonnes

(36%) of MSW and 0.9 million tonnes of commercial and industrial waste (12%).

Clearly, there is still much to be done to move us towards a circular economy as landfill sites are

reaching capacity and waste is set to be the next major resource crisis.

3.2


9

socio-economic

The sharp rise in households with access to either fixed or mobile broadband has been broadly

welcomed by South Africans, with the majority of internet users in the country stating that it has

positive implications for education, commerce, politics and socialising (Pew 2018). This trend is

expected to continue into the future and presents a new frontier of opportunity for economic

activity.

There has been little fluctuation in the percentage of students graduating in the Science, Technology,

Engineering and Mathematics (STEM) fields over recent years. (Unpublished CHEC, 2018). The

developments of both the Atlantis SEZ and Saldanha IDZ have however prompted extensive

skills development and enterprise development programmes. This is to build the capacity of local

communities, with the aim of providing a hub for Green Economy related training in the future

(through organisations such as SAREBI). The Skills Programme and Provincial Game Changer in

DEDAT have been driving the training of Photovoltaic installers and working with national bodies on

the training of plumbers for alternative water installations. Skills training initiatives are being run by

various academic institutions, with the University of Stellenbosch driving the Bridgiot smart meter

business, UCT running a FutureWater programme and UWC hosting the South African Renewable

Energy Institute.

Skills development programmes are still needed in multiple areas and need to be scaled up for Green

Economy related small business development support. Innovation is not yet effectively supported

through all sectors and current knowledge hubs are still silo based and seldom run at a national

level. (Unpublished, DEDAT, 2018)

While the 2016 figure for the share of exports from the agricultural sector relative to total exports

reflects a positive increase, it is important to note that the impact of the drought was only really felt

in 2017 for Western Cape Agriculture. The reason being that the province relies heavily on irrigation

water from dams, therefore there will be a lag between the rains not coming and water shortages

as the dams are depleted. Further to this, the drought had the knock-on effect of causing significant

job losses in the agricultural sector which in turn will have negative impacts on indicators such as

GDP per capita and food security (PERO 2018).

The Western Cape has been able to take advantage of developments on the African continent to

increase agricultural and agri-processing exports to certain countries in the region. There has also

been strong growth of certain products to East Asia and the Middle East. In some cases this is due

to increased demand in countries experiencing positive market growth, in other cases there have

been deliberate focused efforts to promote exports of a particular product to a country, such as

was done with wine and brandy to China and Angola (Export.gov 2018).

Despite being an under-developed sector in South Africa, the massive potential for job creation and

revenue generation within Aquaculture is recognized. It is the fastest growing food production sector

in the world. Marine aquaculture is capital and technology intensive and is seen as a source of high-

value fishery products for export while freshwater aquaculture is mainly viewed as a potential source

of food security for rural communities in coastal areas. Due to the sectors high growth potential,

the state has initiated an aquaculture programme under Operation Phakisa as a key growth area.

Under the programme the Western Cape has been identified as the highest potential investment

area with abalone farms exporting mainly to China securing the provinces dominance. While exact

industry figures remain unofficial for the province, estimates indicate that production volumes have

risen from under 3000 tonnes per annum to over 4000 in 2018 (Pers Comms 2019).

3.3


10

enviRonmentAl QuAlity of life

The marginal increase in food insecurity in the province between the 2015 and 2016 figures is

consistent with national trends towards increasing unemployment and increasing inequality. The

Western Cape Government Strategic Framework for Household Food and Nutrition Security (WCG

2016) aims to find a good balance between social and economic interventions - by protecting

communities, while also addressing the underlying issues that shape the food economy such as the

way cities are developed, the way resources are managed and the access that communities have

to fresh and nutritious food.

Significant employment losses in the agricultural sector in 2017 and 2018 will continue to have a

marked impact on this indicator moving forward and as such the strategy requires increased support.

Improvements in the percentage of freight transported by rail reflects a shift in the right direction

for the province, and the Provincial Freight Strategy (DTPW 2019) has set a course to build on

this success. In the Western Cape, the bulk of export coal, export iron-ore, export manganese and

domestic coal are highly suited to being transported by rail. Transporting rail-friendly freight on rail

rather than road reduces logistics costs, and impacts positively on the road network, whilst reducing

the transport sector’s carbon emissions

The relative increase in private transport vs public transport however, is a trend that is set to

continue for the next few reporting years at least as large-scale disruptions to the Western Cape

public transport system have wreaked havoc over recent years. Between 2015 and 2018 80% of

train carriages burned in the country have been in the Western Cape (over 270 individual carriages)

which has resulted in massive disruption and entire sections of the rail service being shut down

(M&G 2018). This is a key contributor to worsening traffic congestion that has led to increased

commuting times, air pollution and a decrease in safety. Innovations such as e-hailing are providing

some solutions and experiencing significant up-take, but carpooling would do well to build on the

digital app approach to increase its reach.

There have been some other State-led measures to counter the trend towards private transportation,

most notably in the City of Cape Town. The MiCiti bus system has provided a safer, more accessible

and reliable form of public transport along its routes. There is however, a great deal more work to

be done to address the challenges of public transport.

The high level of electrification across the province is unlikely to increase significantly going into

the future as the bulk of unelectrified households are unlawful settlements (such as those on flood

plains and private land) where connection is not possible. The main issue is no longer so much about

electrical connection but much more with regards to affordability. Although somewhat dated the

Department of Energy (DoE 2013) estimated that 43% of South Africans are energy poor, spending

more than 10% of their income on energy needs - with many in the lowest LSM group spending

25% and more of their income on energy. This remains both a threat and an opportunity for Green

Economy in so far as our ability to respond to the need with non-fossil fuel-based solutions.

3.4


11

policy & finAnce

A key focus on advancing the WC Green Economy has been on unlocking regulatory barriers. While

this has been challenging due to most of the relevant regulations sitting as the mandate of national

government, it has encouraged a more collaborative approach to facilitating change. This has given

rise to innovative solutions such as the Province’s first issuance of green and social impact bonds,

while further blended finance strategies for sustainable infrastructure rollout are being developed

such as the Sustainable Infrastructure Development and Finance Facility (SIDAFF).

Other key areas of work have included the adoption of municipal feed-in tariff frameworks for 18

municipalities, the development of new water regulations promoting water efficiency, the City of

Cape Town’s amendments to their Water By-Law and the new national industry waste management

plans. The changing nature of municipal revenue stream requires innovation in municipal finance

models that need to be redesigned to reduce reliance on sales of resources. The current reliance

of municipalities on the sale of utilities is at odds with the need to reduce electricity and water

consumption and waste provision that are adjusted to deliver solutions that are more fitting.

The stop-start nature of REIPPPP due to multiple national energy policy shifts has caused uncertainty

in investor markets, but this has partly been relieved by the revised IRP 2018 that targets 200 MW

of renewable energy by 2030. Similarly, existing legislation that limits municipalities to a maximum

purchase of 1MW of power directly from independent energy providers is currently being challenged.

The building development sector and the water sector have called for greater regulatory clarity

around water and regulations at a municipal level are still needed across multiple areas so as to

encourage and enable improved resource efficiency. (Per Comm, Helen Davies, 2018)

The focus on oceans and coasts through the Operation Phakisa (Oceans & Coast) & through changes

in coastal legislation has been driven through improved coastal management in the WC (DEA 2018)

According to the WC State of Environment Report (SoEOR 2018), the percentage of overexploited

fish species has decreased between 2012 and 2014, indicating some recovery of selected species’

stocks. The percentage of linefish species (targeted by recreational anglers) considered collapsed

has increased between 2013 and 2016 and should reveal further major opportunities for aquacultural

development in the near future. This should include about 884 hectares of Saldana bay being

dedicated to aquaculture, or about 10% of the bay. At present 15 of the 35 registered Operation

Phakisa aquaculture projects are located in Saldanha Bay (DEA 2018).

The designation of the Atlantis Greentech Special Economic Zone (SEZ) in October 2018 provides an

opportunity to catalyse the WC as a hub for the Green Economy, with five investors already located

on the site, providing 312 jobs and totaling R680 million in investment. The targeted investment up

to 2030 is approximately R2.7 billion and projection forecast the creation of approximately 3 000

jobs, with 21 new investors already showing significant interest in the SEZ (GreenCape 2018).

3.5


12

Whether as a result of a response to crises (such as in the case of the drought) or in response to a

new opportunity (such as with aquaculture or renewable energy) it is clear that there is a great deal of

dynamism in the Western Cape’s Green Economy. As the South African public becomes increasingly

aware of the devastation caused by environmental degradation, this dynamism should represent

a beacon of hope that we can not only address the challenges of poverty and unemployment, but

that we can do so without jeopardising the quality of life of future generations.

In the coming years, the Western Cape Government looks forward to reporting on the steps taken

to address key challenges facing the province including climate impacts, the need to achieve a

zero-waste society and municipal finance innovation. As such the Western Cape Government is

committed to working with our partners at local and national government, as well as joining hands

with the private sector to enable the development of innovative, sustainable solutions.

westeRn cApe gReen economy indicAtoRs:

InDICAToR unIT 2012 vAluE 2013 vAluE 2014 vAluE 2015 vAluE 2016 vAluE SouRCE:

Percentage

change in carbon

emissions against

2009 baseline.

Data is for energy

sector only.

Percentage (%) -17.80% Data is reported biennially. No data for 2013.

Data not yet available.

-12.10% Data not available yet

lize Jennings-Boom

Agricultural land

improved through

conservation

measures annually.

hectares (ha) 27,359ha 29,076ha 18,036ha 7,342ha 12,918ha Francis Steyn

Total water supply

versus total water

demand.

volume (m3) Supply:

596,000,000m3

Demand:

510,201,000m3

Supply:

596,000,000m3

Demand:

508,100,000m3

Supply:

596,000,000m3

Demand:

547,260,000m3

Supply:

565,850,000m3

Demand:

541,340,000m3

Data not available yet

Greencape

WATER WEEk, EnvIRonmEnTAl AWAREnESS AnD EDuCATIon 16 mARCh 2019

4 conclusion

4.1


13


Carbon emissions

for energy sector.

Carbon-equivalent emissions (Co

2e)

Emissions for energy sector:

36,345,753.00tCO2e

Emissions per unit GDP:

82tCO2e/million

units GDP*

Data is reported biennially. No data for 2013.


Emissions for energy sector:

38,901,581.00tCO2e

Emissions per GDP :

103tCO2e/million

units GDP


lize Jennings-Boom

Total energy

consumption.

Gigajoule (GJ) 276,333,250GJ No data for 2013/2014 financial year.

316,251,814.16GJ 299,401,472GJ Data not available yet

lize Jennings-Boom

Energy

consumption by

sector.

Gigajoule (GJ) Industry:

85,383,982.29GJ

Transport:

146,296,369.73GJ

Agriculture:

6,968,221.23GJ

Commerce and Public Services:

10,921,301.41GJ

local Government:

2,111,886.20GJ

Residential:

24,652,304.95GJ

No data for 2013/2014 financial year.


Industry:

87,530,766GJ

Transport:

161,817,293GJ

Agriculture:

5,092,440GJ

Commerce and Public Services:

14,430,141GJ

local Government:

1,561,059GJ

Residential:

28,969,771GJ


lize Jennings-Boom

Energy

consumption per

unit GDP.

Gigajoule (GJ)/million units GDP

629GJ/million units GDP*

Data is reported biennially. No data for 2013.

Data not available yet.

792GJ/million units GDP.


lize Jennings-Boom

Energy

consumption per

capita.

Gigajoule (GJ)/capita

46GJ/capita* Data is reported biennially. No data for 2013.

Data not available yet.

48GJ/capita Data not available yet

lize Jennings-Boom

Total energy

produced from

renewable sources

by independent

power producers.

megawatt (mW)

133.40MW 421.82MW 497.00MW 606.0MW 606.0MW** IPPP

municipal solid

waste generated

annually.

Tonnes 3,807,765 tonnes No data 2,922,190 tonnes

4,067,982.20 tonnes

2 491 114 tonnes Belinda langenhoven

Waste diverted

from landfill

annually.

Percentage (%) 9% Data is reported biennially. No data for 2013.

38.00% 16.00% 26.70% Belinda langenhoven

Green Drop Score. Percentage (%) 84.50% No data for 2013.

No data for 2014.

No data for 2015. No data for 2016.

DWS

Percentage of

households with

access to the

Internet at home.

Percentage (%) 54.3% (StatsSA) 54.4% (StatsSA) 53.9% (StatsSA) 57.05% (StatsSA) 68.5% (StatSA) Gavin miller

Percentage

students

graduating from

science and

engineering

faculties.

Percentage (%) 40.40% 41.00% 41.20% 41.0%*** 39.94% Cape higher Education Consortium

Percentage

agricultural and

agri-processing

exports as a

portion of total

provincial exports.

Percentage (%) 48.95% 55.07% 50.81% 48.22% 52.24% Andrew Partridge

Total value of

aquaculture sector.

Rands (R) R405 million R538.56 million Data not available.

Data not available. Data not available yet

Ferdie Endemann

Total annual

tonnage produced

by the aquaculture

sector.

Tonnes 2,574.00 tonnes 3,352.35 tonnes Data not available.

Data not available. Data not available yet

Ferdie Endemann


14


modal split

for passenger

transport.****

Percentage (%) Private transport: 52%

Public transport: 48%

Private transport: 52%





Public transport; 52%


Public transport; 47%

Sivuyile Jokazi-CoCT

Percentage of total

volume of land

freight haulage

by rail.

Percentage (%) n1: 32%

n2: 0.9%

n7: 3.4%

n1: 45.2%

n2: 4.1%

n7: 0.0%

No data available.

No data available. n1: 48%

n2: 3.9%

n7: 0.7%

Corine Gallant

Percentage

households with

access to energy.

Percentage (%) 90.50% 89.30% 87.60% 89.82% 86.55% Gavin miller

Percentage

households with a

measure of food

insecurity.


Percentage

households

with access to

sanitation.


Percentage

land under

conservation.

Percentage (%) 6.40% 6.54% 6.81% 7.00% 7.40% Cape nature AR

Cumulative value

of renewable

energy projects

financed by

national and

international

green/climate

funds.*

Rands (R) R3.22 billion R8.024 billion R380 million R3.74 billion R6.00 billion IPP

Annual value of

capital investment

in aquaculture.

Rands (R) R241 million R36.7 million No data available.

No data available. Ferdie Endemann


15

BIoDIvERSITy InDABA mARCh 2018

5 Appendix 1

AdditionAl notes on gReen economy indicAtoRs definition And scope

InDICAToR

CATEGoRyInDICAToR ADDITIonAl noTES on DEFInITIon AnD SCoPE

DATA SouRCE AnD

ConTACT

natu

ral R

eso

urc

e B

ase

Percentage change in carbon emissions against the 2009 baseline.

Data is for energy sector and limited waste emissions only (i.e. it excludes AFOLU

emissions). In 2009, emissions in the Western Cape totalled 44,261,200 tCO2e.

Percentage change is calculated as: absolute change in emissions /2009 emissions.

Negative value indicates a decrease in carbon emissions relative to the 2009

baseline.

lize Jennings-Boom

Department of Environmental Affairs and Development Planning: Climate Change Directorate.

Agricultural land improved through conservation measures annually.

This statistic refers to the number of hectares of agricultural land that is protected/

rehabilitated to improve agricultural production.

Francis Steyn

Western Cape Department of Agriculture

Department of Agriculture’s Annual Report: 2016/2017

Total water supply versus total water demand.

Current supply yield is the modeled yield of the system based on water infrastructure (dams, boreholes etc) and long

term average rainfall.

Re

sou

rce

Pro

du

cti

vit

y Carbon emissions for energy sector.

This excludes emissions from Agriculture, Forestry and Other Land Use, as well as

Industrial and Waste emissions.

lize Jennings-Boom


So

cio

-eco

no

mic

Total energy consumption

This information is drawn from the Western Cape Government Energy

Consumption and CO2 Emissions Database for the Western Cape.

lize Jennings-Boom


Energy consumption by sector.

WCG follows the Department of Energy in the use of the Standard Industrial

Classification codes.

lize Jennings-Boom


Energy consumption per unit GDP.

The unit of measurement conforms to national reporting practices. lize Jennings-Boom


Energy consumption per capita.

The unit of measurement has been changed to conform to national reporting

practices.

lize Jennings-Boom


5.1


16

InDICAToR

CATEGoRyInDICAToR ADDITIonAl noTES on DEFInITIon AnD SCoPE

DATA SouRCE AnD

ConTACT

So

cio

-eco

no

mic

Total energy produced from renewable sources by independent power producers.

This value represents the total, cumulative amount of renewable energy that has

been procured in the Western Cape through the REIPPPP (as of March 2017).

IPPPP Report: march 2017

municipal solid waste generated annually.

This value represents the total amount of solid waste generated annually by the six

district/metropolitan municipalities in the Western Cape in 2016.

Eddie hanekom

Department of Environmental Affairs and Development Planning: Waste Management

Waste diverted from landfill annually

This represents the total percentage of waste diverted from landfills in the Western

Cape in 2016.

Eddie hanekom

Department of Environmental Affairs and Development Planning: Waste Management

Green Drop Score The Green Drop score is a weighted score for municipal wastewater. The audit

assesses the entire value chain involved in municipal wastewater services including

collection, treatment and discharge of sewerage.

Department of Water and Sanitation

Percentage households with access to broadband connection

Statistics were calculated using the StatsSA 2016 General Household Survey data

for the Western Cape.

Statistic refers to the percentage of households that have access to either: i) fixed

broadband; or ii) mobile broadband.

Gavin miller

Western Cape Department of Social Development

Percentage students from science and engineering faculties.

This statistic applies across South Africa, and not specifically to the Western Cape

province. The statistic is a reflection of the percentage of students who graduated

in 2015 from: i) engineering; and ii) natural and physical sciences.

Department of higher Education and Training Annual Report: 2016/2017.

Agricultural and agri-processing exports as a percentage of total provincial exports.

The 2012, 2013 and 2014 figures have been updated from previous reports.

Agriculture and agri-processing exports refers to the percentage exports of

agriculture, forestry, fishing, food, beverages and tobacco as a percentage of the

total provincial exports.

Andrew Partridge

Department of Agriculture

Total value of aquaculture sector.

Data not available.

Total annual tonnage produced by the aquaculture sector.

Data not available.

En

vir

on

me

nta

l Q

uality

of

lif

e

modal split for passenger transport.

This statistic is only for the City of Cape Town.

For a breakdown of the modal split please see page 26 of the Comprehensive

Integrated Transport Plan, 2018-2023 https://tdacontenthubfunctions.

azurewebsites.net/Document/1794

Sivuyile Jokazi

City of Cape Town: Transport Planning

Percentage of total volume of land freight haulage by rail.

The Western Cape Department of Transport and Public Works divides freight

haulage into three main transport corridors corresponding to the national roads,

the N1, N2 and N7.

Corrine Gallant

Western Cape Department of Transport and Public Works.

Percentage households with access to energy.



Statistic refers to the percentage of households with access to a mains electricity

supply.

Gavin miller


Percentage households with a measure of food insecurity.

Statistics were calculated using the StatsSA 2015 General Household Survey

data for the Western Cape. Statistic refers to the number of households who are

“sometimes”, “often” and “always” food insecure.

Gavin miller


Percentage households with access to sanitation



Statistic refers to the percentage of households with access to: i) a flush toilet

connected to a public sewerage system; ii) flush toilet connected to a septic tank;

and iii) a pit latrine/toilet with a ventilation pipe.

Gavin miller


Po

licy a

nd

Fin

an

ce

Percentage land under conservation

This statistic refers to the conservation estate of CapeNature, which is the area

of land in the Western Cape that is managed by CapeNature. This area of the

conservation estate is 894,346 ha.

Capenature Annual Report 2015/2016.

Cumulative value of renewable energy projects financed by national and international green/climate funds.

IPPPP Report: march 2017

Annual value of capital investment in aquaculture.

Data not available.


17

CBI (2018). Climate Bonds Initiative. Green Bonds: The state of the market 2018. See: https://www.

climatebonds.net/resources/reports/green-bonds-state-market-2018 [Accessed: 16/02/2019]

Department of Environmental Affairs (DEA). (2018). Republic of South Africa. About Green Economy.

Available at See: https://www.environment.gov.za/projectsprogrammes/greeneconomy/about

[Accessed: 15/02/2019]

Department of Environmental Affairs (DEA). (2018). Republic of South Africa. See: https://www.

environment.gov.za/projectsprogrammes/operationphakisa/oceanseconomy [Accessed: 31/13/2020]

Department of Energy (DoE). (2013). A Survey of Energy Related Behaviour and Perceptions in South

Africa. The Residential Sector. See: http://www.energy.gov.za/files/media/Pub/DoE-2013-Survey-of-

EnergyRelated-Behaviour-and-Perception-in-SA.pdf [Accessed: 15/11/2018]

Department of Transport & Public Works (DTPW). (2019). Provincial Freight Strategy. https://www.

westerncape.gov.za/sites/www.westerncape.gov.za/files/freight_strategy_report_final_2019.pdf

[Accessed: 17/02/2019]

Export.gov. (2018). South Africa - Agricultural Sector. See: https://www.export.gov/article?id=South-

Africa-agricultural-equipment [Accessed: 15/02/19]

GreenCape. (2018). Greentech Atlantis Special Economic Zone (SEZ) 2017/18 Annual Report. See:

https://www.green-cape.co.za/assets/Uploads/20180903-GreenCape-ASEZ-Annual-Report-FAWeb3.

pdf [Accessed: 14/02/2019].

GreenCape. (2018). Waste – Market Intelligence report 2018. See: https://www.greencape.co.za/

assets/Uploads/20180622-GreenCape-Waste-MIR-FA-LR.pdf [Accessed: 12/01/2019]

GreenCape. (2018). Water – Market Intelligence report 2018. See: https://www.greencape.co.za/assets/

Uploads/GreenCape-Water-MIR-FINAL-20180405.pdf [Accessed: 12/01/2019]

2WISE 2WASTE: FooD WASTE ExhIBITIon 30 novEmBER 2018

6 RefeRences


18

IPCC. (2018). Global Warming of 1.5°C, an IPCC special report on the impacts of global warming of

1.5°C above pre-industrial levels and related global greenhouse gas emission pathways, in the context

of strengthening the global response to the threat of climate change, sustainable development, and

efforts to eradicate poverty. See: https://www.ipcc.ch/sr15/ [Accessed: 12/12/2018]

M&G. (2018). Cape Town trains Off The Rails. See: https://mg.co.za/article/2018-08-03-00-cape-town-

trains-off-the-rails [Accessed: 14/12/2019]

PERO. (2018). Western Cape Government. Provincial Treasury. Provincial Economic Review and

Outlook 2018 See: https://www.westerncape.gov.za/assets/departments/treasury/Documents/

Research-and-Report/2018/2018_pero_revised.pdf [Accessed 15/02/2019]

Pew. (2018). Internet Connectivity seen as having positive impact on life in Sub-Saharan Africa. See:

http://www.pewglobal.org/2018/10/09/internet-connectivity-seen-as-having-positive-impact-on-life-

in-sub-saharan-africa/ [Accessed: 12/12/2018].

Raworth K. (2012). A Safe and Just Space for Humanity: Can we live within the doughnut. Oxfam Policy

and Practice: Climate Change and Resilience, Volume 8, Number 1, 13 February 2012, pp. 1-26(26).

Rockstrom J; et al. (2009). Planetary Boundaries: Exploring the Safe Operating Space for Humanity.

Stockholm Resilience Centre. See: https://www.stockholmresilience.org/download/18.8615c78125078c

8d3380002197/1459560331662/ES-2009-3180.pdf [Accessed: 13/01/2019]

Western Cape Government (WCG). (2016). Strategic Framework for Household Food and Nutrition

Security. See: https://www.westerncape.gov.za/sites/www.westerncape.gov.za/files/assets/140916_

wcg_household_food_and_nutrition_security_strategic_framework.pdf [Accessed: 10/01/2019]

WWF. (2018). Living Planet Report 2018. See: https://wwf.panda.org/knowledge_hub/all_publications/

living_planet_report_2018/ [Accessed: 12/12/2018]

WWF (2018) Barriers to greening the South African economy. See: http://www.wwf.org.za/?26442/

Barriers-to-greening-the-South-African-economy [Accessed: 11/01/2019]

WWF (2019). 10 signals the Green Economy is underway. See:http://wwf.panda.org/?342031/10-signs-

the-green-economy-is-underway [Accessed: 10/03/2019]

TNC. (2018). The Nature Conservancy. The Greater Cape Town Water Fund-Business case. Cape Town.

StatSA. (2019). Economy edges up by 0,8% in 2018. See: http://www.statssa.gov.za/?p=11969

[Accessed 07/03/2019]


19

ConTACT: Chief Directorate Environmental Sustainability

Western Cape Department of Environmental Affairs and

Development Planning

Leeusig Building, 01 Dorp Street, Cape Town, 8001

Private Bag X9086, Cape Town, 8000

Tel: 021 483 0776 Fax: 021 483 3093

Email: [email protected]

www.westerncape.gov.za/eadp

Cover photograph by James Puttick © WCG DEA&DP

Wild Honeybush Harvesting

Click here to read more