SO WHAT IS THE GREEN ECONOMY ANYWAY?

Much has been said about the green economy in recent times. Pravin Gordhan, our Minister of Finance, made several references to the green economy in his budget speech in February this year.  The Minister of Economic Development, Ebrahim Patel confirmed that the Industrial Development Corporation (IDC) will be boosting green economy projects in South Africa to the tune of R25 billion over the next 5 years.  We also know that the United States President Barack Obama has repeatedly referred to the green economy as a means by which that country's economy can be assisted at the same time as achieving environmental protection objectives.

So what is this economic trend that will save us from the recession as well as impending environmental catastrophe?  The definitions are many and diverse, and the subject is a complex and very broad one.  Simply put, "the green economy" is a label used to describe economic activity which achieves the result of facilitating or promoting sustainability on a number of fronts. This includes, in particular, environmental sustainability such as the protection of the environment and its resources. It is also understood to include sustainability more broadly speaking, addressing underlying social and economic sustainability necessary to overcome environmental pressures. A multitude of economic activities will achieve these objectives in different ways.

TRADITIONAL BUSINESS ACTIVITY.....IN A "GREENER" WAY

The green economy includes all of the traditional economic activities which are known and well established, and are now being implemented in a more sustainable and environmentally friendly manner.

As an illustration, water heating is traditionally achieved in South Africa by using a hot water geyser containing water that is heated by an element using electrical resistance heating.  This method of heating water is not energy efficient and therefore not green. The manufacturing of such a conventional water heater could become greener in terms of how the process is undertaken. Steps could include:

• The increased use of more recycled material, recycling and minimising waste,
• Achieving energy efficiency in the manufacturing process
• Rationalising and optimising transportation, packaging and other resource hungry activities.

In this way the manufacturer would have lessened the environmental impact of its traditional business and become greener.

All the steps taken and the money spent on this greening process can be seen as part of the green economy.

NEW BUSINESS ACTIVITY....SETTING OUT TO GO GREEN.

The need to move towards sustainability has spawned a range of "new" activities. Some of these activities did exist before, on a very small scale, but are now rapidly moving towards becoming mainstream as their necessity becomes apparent. These new activities comprise both the design and manufacture of goods and physical systems, but also include professional and expert knowledge and information, its dissemination and the education and training that is necessary for implementation. Examples include:

• The design, manufacture and sales of renewable electricity systems
• Rainwater harvesting and water treatment systems
• Energy monitoring and control systems.

To continue with the water heating illustration, the manufacturers and suppliers of water heating systems have had to start looking at a different way of heating water.  The most common of these worldwide is probably solar water heating where the heat of the sun is utilised to, directly or indirectly, heat the water and therefore reduce or eliminate the need to use electrical resistance heating to heat the water.  Heat Pump technology is another way of utilising electricity to heat water that is far more efficient than electrical resistance heating.  Using the sun or heat pumps to heat water on a wide scale is relatively new in South Africa and this is an example of a new activity which is green is its results.  These could be seen as new activities forming part of the green economy.

GREEN ECONOMY AND THE BUILDING INDUSTRY

The building industry has been identified as being one of those sectors that can achieve huge efficiencies in the interests of sustainability. In other words, a "green" built environment can do a tremendous amount to reduce environmental and ecological harm, and an environmentally harmful built environment can create a tremendous amount of damage. 

Building is an ancient activity which probably saw the peak of unsustainability in the latter half of the 20^th century.  Energy appeared to be cheap and abundant, as did resources such as steel, concrete, glass, aluminium and others.  Applying energy intensive technological solutions to issues such as heating, cooling and building was the order of the day and, in general terms, little consideration was given to the environmental cost of the activity stop. There are buildings from this era with non-opening windows!

Knowing what we know now, we realise that a new approach is needed.  Energy has revealed itself to be the costly resource that it is and the same is true for many building materials.  We can therefore undertake the business of building in a green way by ensuring that our buildings are energy and water efficient and utilise the most cost effective materials possible.  Concrete, steel and aluminium use can be limited to the absolute minimum amount required for structural purposes. Buildings can be designed so that their environmental footprint is minimised. 

Here we can see an old activity, implemented in terms of a new way of thinking. All of research, consulting, training and awareness activities necessary to achieve this, will from part of the green economy. All the systems, components and materials used in pursuit of this objective also form part of the green economy.  

FEATURES OF THE GREEN ECONOMY

• Some of the key features that distinguish a green economy from a traditional one include appreciation of the total cost of all goods and activities. Costs not only include direct financial costs, but also the cost on the environment, the society, the community. It is essential that the costs, or potential detrimental impacts, on all affected stakeholders and community members is measured and accounted for.

• The green economy acknowledges that natural resources are precious and mostly finite, and recognises that the entire ecosystem is a delicate balance of many interwoven factor. It is recognised that damage to, or depletion of, any one resource or individual component can result in damage to the entire system.

• The functioning green economy understands that people are an integral factor of the larger system. Fair play, decent work, ethical conduct and social responsibility are all valued based on the understanding that any activity which benefits some while dispossessing others is not sustainable.

CONCLUSION

Collectively humanity is only starting to come to terms with the need to actively pursue sustainability in all that it does. The main reason for doing so is that this has become a matter of survival. There is much to learn and there is a lot of opportunity to do things in a more caring and efficient manner. The yardstick is ruthless. When fully accounted for, an activity either contributes towards environmental destruction, or it mitigates it. Very little activity is truly neutral. It is essential that we all measure our activities against this truth at all times to avoid continuing the destruction.    

Brandon Abdinor | Executive Director