In spite of the emphasis on job creation through the “green economy” in the new growth path (NGP) and in earlier policy documents such as the industrial policy action plan, the 2011 budget is rather thin on financing the link between jobs and green initiatives.
Instead, about R800-million meant for green projects has been left unallocated and will be doled out only during the adjustments budget in October.
Ebrahim Patel’s department for economic development has been allocated no money from the budget for its green economy sub-programme. The objectives of the sub-programme include coordinating work between the government and private sector players as well as the establishment of a dedicated fund.
Under the NGP, green economy proposals include expanding the manufacturing of technology for solar, wind and biofuels, with clean manufacturing and environmental services.
Government has, however, committed to spending on research and development in energy-efficiency technologies, allocating R370-million to the department of energy for this purpose. Of this, R66,5-million will be for the establishment of the South African National Energy Development Institute.
And government has allocated more than R2,2-billion to expanded public works projects relating to the environment. An estimated 41Â 131 jobs can be created, but a portion of this money is going towards hosting the United Nations Conference on Climate Change to be held in Durban in November and December.
Green fund money unallocated
Money formerly envisaged as a green levy meant to fund green projects is the electricity levy, which will rise from 0,5c/kWh to 2,5c/kWh from April 1 2011. Now, however, about R3,8-billion of the revenue raised will go towards the rehabilitation of roads that have been damaged by coal-haulage operations supplying Eskom.
But according to Andrew Donaldson, the deputy director general in the treasury, about R800-million in the estimates of national expenditure destined for green projects remained unallocated. Gordhan noted in his speech that specific allocations would be made during October’s adjustments budget.
Proposals for a carbon tax were put forward in a discussion paper released in December last year, examining reducing greenhouse emissions through the implementation of a levy.
A full-blown carbon tax would be quite a blow for the economy, but the “green economy debate needs to become real”, said Donaldson.
South Africa had a high level of scientific expertise on this front, but the link between levels of research and their adaptation by local industry needed to improve, he said.
Similarly, there needed to be better coordination between departments to get green economy initiatives going.