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Green Economy Policy Review of South Africa's GREEN ECONOMY POLICY REVIEW OF SOUTH AFRICA’S INDUSTRIAL POLICY FRAMEWORK GREEN ECONOMY– + POLICY + REVIEW –OF – SOUTH AFRICA’S+ INDUSTRIAL+ POLICY FRAMEWORK Copyright @2020 DEFF, DTI&C, DSI Disclaimer The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Environment Programme concerning the legal status of any country, territory, city or area or of its authorities, or concerning delimitation of its frontiers or boundaries. Moreover, the views expressed do not necessarily represent the decision or the stated policy of the United Nations Environment Programme, nor does citing of trade names or commercial processes constitute endorsement. Photos © Shutterstock GREEN ECONOMY POLICY REVIEW OF SOUTH AFRICA’S INDUSTRIAL POLICY FRAMEWORK GREEN ECONOMY POLICY REVIEW OF SOUTH AFRICA’S INDUSTRIAL POLICY FRAMEWORK Acknowledgements Acknowledgements This research report was produced by the United Nations Environment Programme (UNEP) with funding from the European Union in the framework of the project Inclusive Green Economy Policy Making for SDGs. The publication is based on a green economy policy review methodology developed by UNEP as part of the same project. The report was coordinated by Claudia Assmann under the guidance of Sheng Fulai and Steven Stone from the Resources and Markets Branch at UNEP. Lead authors of this report were Gaylor Montmasson-Clair and Gillian Chigumira from Trade & Industrial Policy Strategies (TIPS), a not-for-profit economic research organisation based in Pretoria, South Africa. In addition, UNEP would like to thank: • Jenitha Badul (Department of Environment, Forestry and Fisheries (DEFF)), Leanne Richards (DEFF), Gerhard Fourie (Department of Trade, Industry and Competition (the DTI&C)) and Ilze Baron (the DTI&C) for their comments and feedback through the research process; • Bhavna Deonarain (TIPS) for her research assistance and Saul Levin (TIPS) for his detailed review of the draft report; • the key informants for their time, insight and feedback at various stages of the research lifecycle; • Janet Wilhelm for the editing of the report; • Joseph Price (UNEP) for his support in the final stages of the report; • Stéphane Bothua (UNOG) for design and layout of the report; and • Natasha du Plessis (TIPS) and Fatma Pandey, Rahila Somra and Desiree Leon (UNEP) for the administrative support. Funded by the European Union TRADE & INDUSTRIAL POLICY STRATEGIES MENU iv6 GREEN ECONOMY POLICY REVIEW OF SOUTH AFRICA’S INDUSTRIAL POLICY FRAMEWORK Contents Contents Acknowledgements ......................................................................................................................................................................................................iv Contents .............................................................................................................................................................................................................................v List of figures ....................................................................................................................................................................................................................vi List of tables .....................................................................................................................................................................................................................vi List of boxes ......................................................................................................................................................................................................................vi Abbreviations and Acronyms ....................................................................................................................................................................................vii Executive Summary .................................................................................................................................................................................................... viii 1. Introduction .......................................................................................................................................... 1 2. Policy design .......................................................................................................................................... 3 2.1. Existing green shoots in the industrial policy framework ......................................................................................................3 2.2. National Policy Coherence ........................................................................................................................................................................8 2.3. Global alignment ..........................................................................................................................................................................................13 2.4. Intra-governmental coordination ......................................................................................................................................................19 2.5. Stakeholder engagement .......................................................................................................................................................................23 2.6. Monitoring and evaluation ....................................................................................................................................................................25 3. Policy implementation ....................................................................................................................... 28 3.1. The instruments ............................................................................................................................................................................................28 3.2. Industrial finance ..........................................................................................................................................................................................29 3.3. Research, development and innovation .......................................................................................................................................32 3.4. Skills development ......................................................................................................................................................................................35 3.5. Regulations and economic instruments .......................................................................................................................................37 3.6. Localisation requirements ......................................................................................................................................................................44 3.7. Economic zones ............................................................................................................................................................................................46 3.8. Trade policy ......................................................................................................................................................................................................47 4. Policy implications and recommendations ....................................................................................... 50 4.1. Capacity building .........................................................................................................................................................................................50 4.2. Policy mainstreaming ................................................................................................................................................................................51 4.3. Information/data system .........................................................................................................................................................................53 4.4. Transition planning .....................................................................................................................................................................................54 5. Conclusions .......................................................................................................................................... 56 6. References ........................................................................................................................................... 58 Annex: Methodological considerations ....................................................................................................................... 64 MENU v GREEN ECONOMY POLICY REVIEW OF SOUTH AFRICA’S INDUSTRIAL POLICY FRAMEWORK Contents List of figures Figure 1: Carbon intensity per country in 2013.................................................................................................................................................1 Figure 2: Palma ratio per country over the 2010-2015 period .................................................................................................................1 Figure 3: A representation of the key policy documents impacting the transition to sustainable development in South Africa..................................................................................................................................9
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