Discussion document:

1. Discussion document: “Towards measurement and integrated sustainability reporting for the public sector: The business case and collaboration opportunity”

2. Introduction • Concept development • There are huge rewards for small, smart choices. It is about simplicity which when applied consistently over time can make a radical difference.

3. What is Green Cloud? • It is an independent knowledge portal providing ‘green’ information to decision makers and the public. • The purpose of Green Cloud is to prompt behaviour change towards embracing a green economy or sustainable development.

4. Behaviour change • Need to make a personal connection with the behaviour and the reasons for the behaviour. • Energy and the cost of energy • Energy and the environment • Our role in energy conservation • If we think water and electricity flows freely and constantly from plug points then there is no connection.

5. What are the drivers? • Values: I believe I am doing the right thing and I identify personally with this behaviour. Make me care. • Compliance: I have been told to change my behaviour but I wouldn’t necessarily be doing this if I didn’t have to. Make it my problem. • Advantage: It suits me to change my behaviour and I am better off doing so. What is in it for me? • Lloyd McFarlane, Green Business Journal

6. What is sustainable development? • Development which meets present needs without compromising the ability of future generations to meet their needs. • Social, environmental, economic and cultural dimensions • SA economy is highly dependent on fossil fuels • Requirement to diversify to a less carbon intensive energy economy.

7. Legislative framework • International (Kyoto protocol, ICLEI – Local Governments for Sustainability, Nantes) • Agenda 21 • National (National Development Plan, National White Paper on Climate Change) • Provincial (KZN Growth & Development Plan) • Local municipalities (Integrated Development Plans) ”

8. The Green Economy • What is the role of local government? • Sustainable energy • Demand side management • How is Government driving the ‘green economy’? • Through industry and business • Promotion of greener suppliers • Marketing and reputational elements of being ‘greener’ • Energy efficiency is the first and obvious step • Energy security and a cleaner development path

9. Energy efficiency as a strategy • Key component of SA’s future energy strategy, 14th highest emitter of GHG • International emissions reduction commitments: Signatory to the Kyoto Protocol but SA is a non annex 1 country • New commitments for Annex I Parties to the Kyoto Protocol who agreed to take on commitments in a second commitment period from 1 January 2013 to 31 December 2020; • •A revised list of greenhouse gases (GHG) to be reported on by Parties in the second commitment period;

10. The power trap • Electricity is cheap to make but expensive to distribute • 35 cents per kW-hour, sold to the municipality for 61 cents, retailed by the municipality for R2 • Distribution costs: high • Does renewable energy make sense? • Independent power producers: R1.42-R2.45 for solar power

11. Vodacom Building, Cape Town Organising your own electricity. Great if you are Vodacom, not so good if you are the City of CapeTown

12. Long term interest • Promotion of renewable energy: ESKOM, NERSA • But by feeding expensive wind and solar energy into the grid adding high generation costs to the already high distribution costs • Off grid use or supplement supplies to the grid: Electrical independence, feeding surplus back onto the grid • But what about the impact for municipalities? • New self providers = loss of revenue • Supermarket analogy

14. The way forward • Who is the customer? • The economy of South Africa • What do they want? What is the driver? • Cheaper and more reliable electricity • How do we achieve this • Use less • Bring down the cost per unit (better heat pumps, more efficient solar panels, energy saving appliances) • Incentivise people to generate their own electricity and put it back into the grid • Solar City case study: Existing technology, different approach to financing

15. Built environment: Response • Learn from our colleagues in the built environment • Design innovation • Double glazing • Slab cooling • Sun tracking blinds • Rain water harvestation • Grey water treatment • Low carbon building materials • Acceptable for communities and buyers (Cosmo City)

16. Integrated waste management: Shift in outlook • Waste is now considered a resource: • Rand terms • Job creation • Understanding your waste hierarchy • Avoidance • Reduction • Recycling • Waste to energy technologies • Leaf from the Dutch book, 2% of their waste is sent to landfills • Waste sector supports 35,000 jobs

17. Look more carefully at the Dutch experience • Rigorous policy environment • What was the driver? Space • Government banned establishment of new landfills • Forced innovation from municipalities and entrepeneurs • Extended producer responsibility (Tyres, batteries) • 400 waste management companies

18. Collect a can • Recycle cans today, sustain tomorrow • Recovery of used beverage cans • The southern African recovery rate for used beverage cans for 2011 is 72% • Collect-a-Can pays “cash for cans” and provides tens of thousands of southern Africans with the opportunity to earn a living, most of whom are unemployed. In many cases, collectors form their own collection networks and deliver their cans directly to one of the company’s branches for which they are paid. • What is the driver? Monetary advantage

19. AD • Anaerobic digestion • Bacteria on feedstock produce methane • Biogas used to generate electricity • Co-operation between feedstock suppliers (Abattoirs, restaurants, supermarkets, fresh produce markets) • Co-operation between fertiliser off takers • Feeding back onto the grid must be simplified • Umgungundlovu case study, KZN Midlands

21. What are the drivers in China? • Pollutants • How has government supported the development of the green economy? • Financial support • Tax incentives

22. Other technology options: Integrated Resource Plan • Solar • Photovoltaic • Wind generation • Hydro power • Solar thermal generation • Nuclear • Plasma gasification • Solving SA’s energy crisis: SA REIPPP, 28 renewable energy projects

23. Scenario and strategy comparison Scenarios Public behaviour Energy availability Regulation Energy expenses Revenue Marketing Renewable energy Energy efficiency No renewable requirements Energy expenses rise Increasing number of off-grid consumers Increasing shortages SWH Advertisements CDM Biomass Strategy Increase in energy efficiency measures implemented Renewable energy quotas Energy costs remain the same Supply is steady Solar Wonderbag distribution Pamphlets Voluntary carbon markets Cheap nuclear energy Surplus supply Consumption stay the same or increases Complete shift to renewable energy Community awareness DoEgrants Anaerobic digester Heat pump installation Pairwise comparisons generate the most robust strategy against the most probable scenario

24. Examples of great ‘green’ projects CDM Landfill Biogas-to-Energy Project * Standardise comparable analysis criteria under sectoral headings for ease of reference 1stCDM Landfill Biogas-to-Energy Project in Africa Bisasar Rd landfill - extracts approximately 350 m3/hour, Component 1 produces approx. 9MWh Mariannhill landfill -180 m3/hour is produced and an estimated 1775 m3/hour by 2024. Approximately 900 kWh of electricity is generated Jobs created? Investment opportunity?

25. Profiling projects which work ZANEMVULA SUBSIDISED HOUSING SOLAR WATER HEATER PILOT PROJECT, NELSON MANDELA BAY METRO Low-pressure solar water heater project in a subsidised housing area. The installation of the solar water heater units began in April 2009, and to date 1000 units have been installed. The pilot was created as part of the NMBM’s Go Green Initiative, which in itself is a response to Eskom’s Power Conservation Phase, (PCP), where the aim is to reduce demand side consumption levels. The low-pressure solar water heaters that are being used save roughly 1.8 tonnes of carbon dioxide (CO2) from being emitted each year from traditional coal power generation techniques. Each solar water heater in Zanemvula saves 1869kWh of electricity per year that would otherwise be used for heating water. Local job creation for installation & maintenance.

26. Bill to open up the energy market stalls • Unexpected delays in processing the Independent Systems and Market Operators Bill in Parliament sends the wrong signals to investors & creates uncertainties. • Sent back to the Portfolio Committee • What ESKOM needs is 40,000MW of new generating capacity in the next 20 years • National Development Plan: highlighted requirement • Cost of bidding: $1.5 to $2 million, 2 x as expensive as elsewhere in the world

27. Carbon tax, 2015 • A handsome revenue source or an investment in future behaviour? • Initiative to reduce GHG emissions • What will it cost industry? • Arcelor Mittal: R650million per annum • ESKOM: Pass onto consumers • 60% tax free threshold • 10% relief for emission intensive industries to invest in projects to mitigate their carbon tax liability

28. The role of information • How do we understand the integration of the environment and development • Information is needed to implement and monitor sustainable development • Requirement to provide decision makers, planners, public with access to reliable and accurate information • Integrate information: social, economic, environmental • Develop an understanding international theory and best practice • Develop capacity of decision makers to use this information • Value of spatial information: Picture tells a thousand words

29. Access to information • How to broaden access to information • How to deepen access to data • How to ensure the inter-connectedness of the data to information flow, bringing organisations and practitioners together to prevent duplication and create a lasting network.

30. Case study: Potato World, Lamberts Bay, Western Cape Potato World is owned by Oceana Group Limited The company provides french fries to fast food outlets, such as Wimpy and KFC and provides Spar with its store-brand frozen chips The company utilizes only 60% of the potatoes, with 40% representing uncooked waste The plant’s potato waste was originally dumped into the Municipal dump site. The site, however, has reached its capacity and the company has for the last 5 years been dumping the waste into the veld, destroying the surrounding vegetation, much of which is regarded as uniquely bio-diverse

31. The problem stakeholders • Direct Problem Owners: • Potato World/Oceana • Cederberg Municipality • Lamberts Bay Community • Indirect Problem Owners: • Wimpy • KFC • Spar • Problem Solver: • Namib Carbon Fertilizer (Pty) Ltd. • Problem Solving Funders: • Nedbank African Treasuries Financial Products • National Empowerment Fund • Other Potential Solution Sponsors: • Wimpy, KFC, Spar

33. The Challenge • To reduce or eliminate need for the dumping of potato waste • 40% of raw material used by Potato World represents waste • 25% goes to hashbrowns • 15% waste (approximately 15 tons) • Company produces 1260 tonnesof waste per month • Convert waste into a sustainable economic activity • Develop technology or local capacity to resolve problem • Create additional jobs for the community as a consequence of the use of waste in a productive capacity.

34. The solution • Convert waste to high quality compost containing carbon using a mixture of • 30% waste from potatoes • 30% hay • 21% carbon • Other contributed waste from agricultural activities such as livestock farming or the fishing industry • Convert waste to a secondary composting product using 5% of waste volume diverted to liquid producing 63,200 litres • Cost of establishing facility estimated at R1m • Start-up of business was funded by Potato World and financed from Nedbank/NEF to support BEE ownership • Business is co-managed by Namib Carbon Fertilizer and new owners with a view to transferring technology and knowledge to enable them to run business sustainably • Namib Carbon Fertilizer acts as the marketing agent for product to ensure ongoing sales of product

35. Impact • New composting facility created 100 new jobs in the area • Discontinuation of harmful dumping of waste product in veld will enable rehabilitation of land and will contribute to additional jobs and business opportunities • Retention of Potato World within the municipality as a major employer

36. Case Study: Nkomomonta Cooperative Poultry Waste, Tzaneen, Limpopo • The Nkomomonta Cooperative is a farmer cooperative comprising 15 emerging farmers • Each farmer currently supplies Bush Valley Farms Abattoir with 40,000 chickens for a total of 280,000 chickens over 7,5 cycles per year • Each farmer creates 55 tons of waste per cycle, accumulating approximately 6,200 tons of waste each year. Dan Mushwana is chairperson of the Co-op. He says that the introduction of a waste to energy business would enable farmers to pay off their bank loans much faster and enable them to take ownership of a key part of the value chain

37. Green Cloud’s solution brokering role • Two possible solutions • Fluidized Bed Combustor – converts poultry litter to gas liquid • Fertilizer conversion to be used for vegetable and fruit farming • Interested Funders/Partners • Nedbank • Namib Carbon Fertilizer • National Empowerment Fund

38. Need for a ‘green’ framework

39. Planning guidelines • Best fit solution informed by information, comparable analysis; • Project evaluation • Funding/Investment support • Clear measurement criteria • Reporting procedures

40. Green rating • The Blue Flag is a voluntary eco-label awarded to more than 3850 beaches and marinas in 48 countries across Europe, South Africa, Morocco, Tunisia, New Zealand, Brazil, Canada and the Caribbean. • The Blue Flag works towards sustainable development of beaches and marinas through strict criteria dealing with Water Quality, Environmental Education and Information, Environmental Management, and Safety and Other Services. • The Blue Flag Programme is owned and run by the non-government, non-profit organisation the Foundation for Environmental Education (FEE). • Proposal • Establishment of criteria to measure ‘green performance’ • Light green/dark green: represented through spatial information

41. Green Cloud Bureau of Standards (GCBS) • Assessment / verification of all things Green • The SABS of the “Green world” – Green Cloud Bureau of Standards – GCBS. • An independent agency that green items manufacturers, suppliers and service providers go to for independent verification. • The way it would work: • A request for listing on the Green Cloud portal would prompt an independent testing / verification (efficiency rating) • All findings would be published on the Green Cloud portal.

42. How will we achieve this objective? • Instrument development • Planning indicators • Measurement and management of interventions • Reporting • Information system • Collect information in the Green Cloud • Analyse information, data base structure • Present information to the various users • Access information through a web portal

43. Consultative process: testing the concept • Preliminary discussions to establish the business case • Provincial Govt (WCape, KZN) • Corporates (Golder) • Municipalities (Various) • Universities (Sustainability Unit, USB, Dept of Engineering, UKZN) • ESKOM

44. Reporting standards • Requirement for standard reporting for various levels of government • Measurement of performance vs targets/indicators • Holistic reports • Corporates reporting • G4 Sustainability reporting • GHG reporting guidelines for Scope 1-3 emissions (DOE) • Consolidated data assembly within the Green Cloud

45. Risk analysis • What are the risks if we do not advance this initiative? • Un co-ordinated planning • Unstructured implementation • Disparate reporting • Inaccurate, incomplete, different levels of reporting • No clear remedial action if performance targets aren’t met • No industry standards for defective products • Duplication of efforts

46. Project milestones • Phase 1: • Development of the business case • Identification of potential funders • Secure funding for the instrument development phase • Collaboration with potential partners, • Phase 2: Instrument development with key stakeholders within SA/global players • Phase 3: Information system development • Phase 4: Portal development and information assembly • Phase 5 • Green Cloud portal launch June 2014

47. Concluding remarks • Old answers are failing us • We need innovation and we need to hurry • Access to reliable and continuous data is absolutely critical • Collaboration towards a better response • “ You can only manage it if you measure it” Thank you