Green economy to create jobs and enhance growth

Eskom hopes to unlock R150-billion in green financing from international development agencies to finance its transition from coal to renewable energy

Investment in the green economy and green technologies will be one of the key topics that the South African government is set to discuss at the COP26 conference in Glasgow, Scotland. Investors are already reluctant to invest in fossil fuels, posing a huge economic risk for South Africa, Africa and other developing countries. Whether it is cutting energy costs or reducing its carbon footprint, the pressure for businesses to adopt green practices is high, and it is only going to grow.

According to conservative estimates, most African countries are by 2030 projected to lose between 2% and 5% of gross domestic product to climate change, which will impact heavily on economies.

In a recent weekly newsletter, President Cyril Ramaphosa said South Africa needed to act with urgency to reduce its greenhouse gas emissions and create a low carbon economy.

Ramaphosa warned that the country could face major trade barriers unless it transitions to a low-carbon economy at a much faster pace. The government argues that the green economy opens access to new green financing opportunities — including the possibility of significant job creation. The green industries also form part of the key components of the country’s Economic Reconstruction and Recovery Plan.

The Covid-19 economic stimulus packages and recovery plans that governments across the world are now putting in place have the potential to create a revival that is both green and inclusive. This has the potential to create income opportunities, job creation and growth, at the same time accelerating action on the medium- and long-term environmental goals, nationally and globally.

South Africa is serious in its pursuit of “green industrialisation” by shifting into areas such as green hydrogen and electric vehicle production. The green industries also form part of the key components of the country’s Economic Reconstruction and Recovery Plan.