A SUSTAINABLE FUTURE FOR ALLWe have an ethical responsibility to ensure that our country’s economy creates jobs <strong>and</strong>opportunities not only <strong>for</strong> the current generation, but <strong>for</strong> generations to come. This requiresthat we take proactive measure to ensure that economic growth is sustainable in the longterm.South Africa faces a number of significant resource <strong>and</strong> environment-related constraintswhich, if not managed carefully, could limit the future growth of the economy. Climatechange also poses a number of cross-cutting challenges, <strong>and</strong> its effects are likely to hit poorcommunities, particularly in rural <strong>and</strong> coastal areas, the hardest.Two resources pose fundamental challenges to the ability of the South African economy tocreate jobs <strong>and</strong> opportunities in the future: energy <strong>and</strong> water. Already, energy is in shortsupply. Poor planning <strong>and</strong> low levels of investment, coupled with an inefficient statemonopoly in the <strong>for</strong>m of Eskom, has lead to a situation where electricity supply issimultaneously insecure <strong>and</strong> increasingly expensive.On the one h<strong>and</strong>, businesses are reluctant to make further investments <strong>and</strong> exp<strong>and</strong> theiroperations because they fear further disruptions to electricity supply. On the other, money isbeing taken out of consumer’s pockets (in the <strong>for</strong>m of exorbitant tariff hikes) to fundinfrastructure upgrades that the state should have completed years ago. Both issues imposeconstraints on economic growth <strong>and</strong> job creation.Water, the second fundamental resource, is essential <strong>for</strong> human life, <strong>and</strong> is a key input <strong>for</strong> adiverse array of economic sectors, from agriculture to mining, manufacturing to tourism.As a consequence of our geography, semi-arid climate, dilapidated infrastructure, <strong>and</strong>inefficient distribution system, it too is in short supply. Only 35% of the country receives morethan 500mm of rain per year, with 21% of the country receiving less than 200mm of rain peryear.For many poor <strong>and</strong> rural communities, which in the past have been inadequately servedbecause of the spatial planning priorities of the apartheid government, water quality <strong>and</strong>access continues to be a problem.Exacerbating both these resource constraints are the interrelated challenges posed byclimate change <strong>and</strong> pollution.While it is clear that careful planning is required to mitigate the impact of climate change,particularly on vulnerable communities <strong>and</strong> sectors, it is equally true that tackling thesechallenges has the potential to unlock new economic opportunities in emerging ‘greenindustries’ such as solar water heater manufacturing.Achieving sustainable economic growth that creates wealth <strong>and</strong> opens up job opportunities<strong>for</strong> future generations of South Africans will require that we develop smarter ways to manageour natural resources by living within our means, putting our country’s energy security backon track, <strong>and</strong> tackling climate change <strong>and</strong> pollution in ways that creates, rather than limits,economic opportunities <strong>for</strong> people.In policy terms, this means adopting a transversal approach to natural resourcesmanagement; separating Eskom’s different functions <strong>and</strong> expediting procurement fromindependent power producers; making key investments in water storage <strong>and</strong> distributioninfrastructure; <strong>and</strong> introducing measures to help entrepreneurs <strong>and</strong> communities participatein tackling climate change.79 | P a g e
CORE CHALLENGESUncoordinated natural resource managementWater shortage, access <strong>and</strong> qualityHigh carbon emissions <strong>and</strong> pollutionSecurity of energy supplyImpact of climate changeNo systematic evaluation of environmental resourcesPOLICY OUTCOMESTransversal approach to resource managementSustainability of water supplyReduce carbon emissions <strong>and</strong> pollutionEnhance energy capacity<strong>Plan</strong> <strong>for</strong> impacts of climate changeDevelop a plan <strong>for</strong> a system of natural capital accountingSouth Africa in International Environmental Per<strong>for</strong>mance Index (rank out of 132)CountryGlobal RankZambia 57Tanzania 64Botswana 66Cote d’Ivoire 67Kenya 83Ghana 91Sudan 104Nigeria 119Eritrea 122South Africa 128Table 15: The Environment Per<strong>for</strong>mance Index, a report produced by scientists <strong>and</strong> policyexperts at Yale <strong>and</strong> Columbia universities ranks South Africa 128 out of 132 countriessurveyed. This is only four places ahead of Iraq, a country that has suffered two destructivewars in the past 20 years. The report reveals that South Africa's air <strong>and</strong> water quality,biodiversity, the functioning of its ecosystems, <strong>and</strong> its agricultural <strong>and</strong> fishery systems, hasseriously deteriorated with detrimental consequences <strong>for</strong> long-term social <strong>and</strong> economicdevelopment. Source: Yale University80 | P a g e