The Department of Trade and Industry (dti) released the revised Industrial Policy Action Plan (IPAP2) for 2011/2012 to 2013/201.
The plan sets out ambitious target to cut unemployment by five percentage points over the next decade. The industrial plan places green industries front and centre in South Africa’s development, and views SARi as a core mechanism for leveraging international climate finance to supplement domestic sources and to provide the funds needed to for a critical mass of renewables that would enable domestic manufacturing in the sector to take-off.
Commenting on the role of SARi within the Government’s Industrial Policy Action Plan 2 to 2014, Minister of Trade and Industry, Rob Davies noted: “SARi’s success will enable South Africa to take a major step forward in advancing its green growth plans and practices. It will also exemplify how nationally led initiatives with international co-operation can effectively realize ambitious economic and climate imperatives.”
Minister Davies cautioned however that: “For the targets to be sustainable, the climate change agenda needs to be effectively integrated into a broader industrial and economic green growth strategy – a strategy which serves to optimise the balance between economic localisation opportunities and energy cost, and is supported by adequate and secure pricing and institutional arrangements. SARi will be required to design and establish innovative solutions to finance the incremental costs of renewables, which will, in turn catalyse the critical mass of renewables needed to deliver the economic and broader social benefits along the way through.”