Discussion
document:
“Towards measurement and integrated
sustainability reporting for the public
sector:
The business case and collaboration
opportunity”
Introduction
 Concept
 There
development
are huge rewards for small, smart
choices. It is about simplicity which when
applied consistently over time can make
a radical difference.
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.
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.
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
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.
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)
The Green Economy

What is the role of local government?


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
How is Government driving the ‘green economy’?
Through industry and business
Promotion of greener suppliers



Sustainable energy
Demand side management
Marketing and reputational elements of being
‘greener’
Energy efficiency is the first and obvious step
Energy security and a cleaner development path
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;
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: R1.42R2.45 for solar power
Vodacom Building,
Cape Town
Organising your own
electricity.
Great if you are
Vodacom, not so good
if you are the City of
CapeTown
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
The way forward

Who is the customer?


What do they want? What is the driver?


The economy of South Africa
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
Built environment: Response

Learn from our colleagues in the built
environment

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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)
Integrated waste
management: Shift in outlook

Waste is now considered a resource:



Understanding your waste hierarchy


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
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
Rand terms
Job creation
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
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
Collect a can

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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
AD

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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
green cloud - bin broker registration
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Avocado bio waste bin on Agatha St.
- 10 ton capacity.
- currently 74% full.
When full this bin will
help create 44kw of
electricity at the
greater Tzabeen area
through the 'keep the
fire burning' project...
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Register Bin
What are the drivers in China?
• Pollutants
How has government supported
the development of the green
economy?
• Financial support
• Tax incentives
Other technology options:
Integrated Resource Plan


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Solar
Photovoltaic
Wind generation
Hydro power
Solar thermal generation
Nuclear
Plasma gasification
Solving SA’s energy crisis: SA REIPPP, 28
renewable energy projects
Scenario and strategy comparison
Scenarios
Public
behaviour
Regulation
Energy
expenses
Increasing
number of
off-grid
consumers
No
renewable
requirements
Energy
expenses rise
Increasing
shortages
Increase in
energy
efficiency
measures
implemented
Renewable
energy
quotas
Energy costs
remain the
same
Supply is
steady
Consumption
stay the
same or
increases
Complete
shift to
renewable
energy
Energy availability
Strategy
Renewable
energy
Cheap
nuclear
energy
Pairwise comparisons
generate the most robust
strategy against the most
probable scenario
Energy efficiency
Marketing
Revenue
Biomass
SWH
Advertiseme
nts
CDM
Solar
Wonderbag
distribution
Pamphlets
Voluntary
carbon
markets
Anaerobic
digester
Heat pump
installation
Community
awareness
DoE grants
Surplus supply
Examples of great ‘green’
projects
CDM Landfill Biogasto-Energy Project
* Standardise comparable
analysis criteria under sectoral
headings for ease of reference





1st CDM Landfill Biogas-toEnergy 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?
Profiling projects which work
ZANEMVULA SUBSIDISED HOUSING
SOLAR WATER HEATER PILOT PROJECT,
NELSON MANDELA BAY METRO



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

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.
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
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
The role of information

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
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
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.
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 storebrand 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
The problem stakeholders

Direct Problem Owners:


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Indirect Problem Owners:

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
Namib Carbon Fertilizer (Pty) Ltd.
Problem Solving Funders:



Wimpy
KFC
Spar
Problem Solver:


Potato World/Oceana
Cederberg Municipality
Lamberts Bay Community
Nedbank African Treasuries Financial Products
National Empowerment Fund
Other Potential Solution Sponsors:

Wimpy, KFC, Spar
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SOLUTIONS
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h3
A group of highly productive chicken farmers in
Limpopo Province, South Africa, have found a
way to convert their chicken waste into energy,
which they now supply to the local municipality.p
Read More...
Please pick categories of
interest:
Household
Foodstuffs
FMCF packaging
Bottles
Paper
Cans
Plastic
DESIGN
h3
Pyrolysis: How this process can turn nutshells
into activated carbon, which is a valuable
ingredient in many consumer products. Learn
about converting nutshells into a highly
commercial format.
Read More...
Commercial
Paper/packaging/stationery
Cans/Metals
Glass
Biodegradable Municipal Waste
p
h3
CORPORATE CHALLENGE
Agricultural waste
Agro-processing waste
Hazardous waste
Oceana, one of South Africa’s largest ish
processing companies faces a growing
environmental problem in the form of ish blood
waste. What can you do to help the company
solve this problem? The winning solution will p
receive R250,000.
Read More...
Medical
Chemical/petrochemical
Metals
Wood treatment/pulp/paper
Radioactive waste
Construction and demolition
JOB CREATION
h3
One man’s garbage is another man’s opportunity.
The Green Cloud is creating jobs by converting
what used to be seen as annoying waste into a
productive good. See how many jobs we are p
creating in South Africa.
Read More...
Concrete and bricks
Wood, glass, metals,
plastic, solvents, asbestos
Excavated soil
Mining waste
Energy related particles
Metals
Slime dams
FINANCE
h3
The National Empowerment Fund (NEF) and
Nedbank have teamed up to inance a new waste
to energy facility at the Greater Tzaneen
Municipal Dumpsite. This is wholly owned by p
black community members.
Read More...
Electrical and Electronic Equip.
Appliances
Spare Parts appliances
ICT Hardware
Lighting
C
The Challenge

To reduce or eliminate need for the dumping of
potato waste

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

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
40% of raw material used by Potato World represents
waste
25% goes to hashbrowns
15% waste (approximately 15 tons)
Company produces 1260 tonnes of 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.
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
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
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
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
Need for a ‘green’ framework
Drivers
Legislative compliance
Reliable and cheaper energy
Reduced reliance on ESKOM, Savings on input sales prices
Job creation
Financial incentives: Grants, escalated investments
Slow down landfill closure through reduced waste
Self regulatory, not currently a statutory or Auditor-general
requirement, not linked to any existing Key Performance
Indicators
Planning guidelines
 Best
fit solution informed by information,
comparable analysis;
 Project evaluation
 Funding/Investment support
 Clear measurement criteria
 Reporting procedures
Green rating


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

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
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:
1.
2.
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.
How will we achieve this
objective?

Instrument development



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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
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
Reporting standards

Requirement for standard reporting for various
levels of government



Corporates reporting



Measurement of performance vs
targets/indicators
Holistic reports
G4 Sustainability reporting
GHG reporting guidelines for Scope 1-3
emissions (DOE)
Consolidated data assembly within the Green
Cloud
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
Project milestones

Phase 1:


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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
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