A strategy for a developmental green economy for Gauteng Final Report January 2010 Report prepared for the Gauteng Province Department of Economic Development By : Frank Spencer, G-Tech Energy Prof Mark Swilling, Sustainability Institute Prof David Everatt, Gauteng City Region Observatory Prof Mike Muller, Graduate School of P&DM, Wits University Jess Schulschenk, Sustainability Institute Jaco du Toit, Sustainability Institute Riaan Meyer, Centre for Renewable and Sustainable Energy Studies Warrick Pierce, Centre for Renewable and Sustainable Energy Studies Strategy for a Developmental Green Economy for Gauteng Table of Contents Table of Contents ................................................ 2 This document ..................................................... 5 5 Gauteng Macro-Economic Challenges ........ 36 The strategy ......................................................... 6 5.1 Food ...................................................... 36 1.1 Strategic agenda for 2010 ...................... 6 5.2 Energy ................................................... 37 Key initiatives .................................................. 6 5.3 Water & Sanitation ............................... 37 Implementation and DED ................................ 6 5.4 Waste.................................................... 37 Food security ................................................... 7 5.5 Poverty & Inequality ............................. 38 2 Energy security ............................................. 7 Solar water heating industry ........................... 7 6 Policy Framework for Action ....................... 39 Energy Efficiency ............................................. 8 6.1 Drivers .................................................. 39 Concentrated solar power (CSP) ..................... 8 6.2 Recommendations ............................... 39 3. Water Security ............................................ 9 Long-Term Water Supply ................................ 9 Water Demand Management ......................... 9 7 Proposed Initiatives ..................................... 42 Pollution Reversal ........................................... 9 7.1 Local Food Production .......................... 42 Sanitation 10 7.1.1 Summary of findings ......................... 42 4. Sustainable Mobility ................................. 10 7.1.2 Introduction ...................................... 42 7.1.3 Gauteng in Perspective ..................... 43 Strategy for a developmental Green Gauteng 7.1.4 Recommendations ............................ 46 (summary) ............................................... 11 7.1.5 Summary of Policy Recommendations ................................................... 54 1.2 Introduction to the Green Economy .... 11 7.1.6 References ........................................ 57 1.3 Green Economy Benefits ...................... 13 7.2 Solar Water Heating ............................. 60 1.4 Gauteng Macro-Economic Challenges . 13 7.2.1 Summary of findings ......................... 60 1.5 Measuring Success ............................... 13 7.2.2 Introduction ...................................... 60 1.6 Key Policies ........................................... 15 7.2.3 Installation Targets ........................... 61 1.7 Summary of Proposed Initiatives ......... 16 7.2.4 Installation Requirements and savings 1.7.1 Local Food Production...................... 16 ................................................... 62 1.7.2 Solar Water Heaters ......................... 17 7.2.5 Economic Payback Period ................. 63 1.7.3 Energy Efficiency .............................. 18 7.2.6 Job Creation Potential ...................... 64 1.7.4 Concentrated Solar Power Industry . 19 7.2.7 Potential of Carbon Financing .......... 65 1.7.5 Water & Sanitation .......................... 19 7.2.8 Recommendations ............................ 66 1.7.6 Waste Management ......................... 20 7.2.9 Proposed Rollout Strategy ................ 66 1.7.7 Transport .......................................... 21 7.2.10 Policy Recommendations ............... 69 1.8 Other Initiatives.................................... 22 7.2.11 References ...................................... 69 1.9 Conclusions .......................................... 25 7.3 Energy Efficiency .................................. 70 7.3.1 Summary of findings ......................... 70 2 Introduction to the Green Economy ........... 25 7.3.2 Introduction ...................................... 70 7.3.3 Energy Intensity ................................ 71 3 Green Economy Benefits ............................. 29 7.3.4 Gauteng Targets ............................... 73 7.3.5 Calculations ...................................... 74 7.3.6 Economic Interventions .................... 74 4 Measuring Success ...................................... 35 2 Strategy for a Developmental Green Economy for Gauteng 7.3.7 Specific Energy Efficiency Interventions 8.3 Long-term ........................................... 108 ................................................... 74 8.4 Summary ............................................ 109 7.4 Concentrated Solar Power Industry ..... 76 7.4.1 Summary of Findings ........................ 76 9 Conclusions ................................................ 110 7.4.2 Introduction and potential of CSP within the Gauteng Province ..... 76 10 Appendix A: Bibliography ........................ 112 7.4.3 The potential of importing CSP energy ................................................... 77 11 Appendix B: Additional Comments on the 7.4.4 Current and projected (2025) provincial electricity demand in Economic Crisis and Ecological Limits ... 114 Gauteng ..................................... 77 11.1.1 Climate Change ............................. 116 7.4.5 Plan to achieve 16% power from 11.1.2 Peak Oil & Coal ............................. 118 Renewables................................ 78 11.1.3 Soils............................................... 121 7.4.6 Cost of CSP vs Coal fired power 11.1.4 Biodiversity and Ecosystem Services stations ...................................... 79 ................................................. 124 7.4.7 Job creation / protection potential .. 79 7.4.8 Benefits of CSP compared to current 12 Appendix C: International Responses to the energy generation technologies 80 Economic Crisis ...................................... 127 7.4.9 Job Creation ..................................... 81 12.1 International Summary .................... 127 7.4.10 References...................................... 83 12.2 Australia ........................................... 127 7.5 Water & Sanitation .............................. 84 12.3 China ................................................. 127 7.5.1 Introduction ..................................... 84 12.4 Germany ........................................... 128 7.5.2 Context ............................................. 84 12.5 India .................................................. 128 7.5.3 Water resources situation ................ 86 12.6 Nigeria .............................................. 128 7.5.4 Overview of water quality status ..... 89 12.7 South Korea ...................................... 128 7.5.5 Strategic issues ................................. 91 7.5.6 Strategic opportunities .................... 93 12.8 United Kingdom ................................ 128 7.5.7 Recommendations ........................... 96 12.9 USA ................................................... 128 7.6 Waste Management ............................. 97 7.6.1 Summary of findings ........................ 97 13 Appendix D: Existing Policy & Commitments 7.6.2 Introduction ..................................... 97 – National, Provincial & Local ................ 131 7.6.3 Current Gauteng Figures .................. 98 13.1 National Government ....................... 131 7.6.4 Job creation potential ...................... 99 13.2 Business ............................................ 132 7.6.5 Recommendations & benefits ........ 100 13.3 Gauteng Province ............................. 132 7.7 Transport ............................................ 103 13.3.1 Integrated Waste Management Policy 7.7.1 Summary of findings ...................... 103 (2006) ....................................... 132 7.7.2 Introduction ................................... 103 13.3.2 Gauteng’s Response to the Economic 7.7.3 Possible economic benefits and job Crisis, Draft Strategy (2009) ..... 132 creation potential .................... 104 13.3.3 The Gauteng Employment Growth 7.7.4 Recommendations ......................... 106 and Development Strategy 2009 – 2014 (2009 Draft) ..................... 133 8 Other Suggested Initiatives ....................... 107 13.3.4 Gauteng Integrated Energy Strategy 8.1 Short-term .......................................... 107 (Nov 2009 Draft) ...................... 133 8.2 Medium-term ..................................... 108 3 Strategy for a Developmental Green Economy for Gauteng 13.3.5 Gauteng Province Air Quality 15.2 Environmental Benefits of Food System Management Plan (Aug 2009) . 134 Regionalisation............................... 139 15.3 Social Benefits of Food System 14 Appendix E: Funding Options .................. 135 Regionalisation............................... 140 14.1 World Bank ....................................... 135 15.4 Building Knowledge Networks ......... 141 14.2 Carbon Finance ................................ 135 16 Appendix F: Water Demand Management 15