SlideShare a Scribd company logo
1 of 17
Gaylor Montmasson-Clair, Christopher Wood, Shakespear Mudombi and Bhavna Deonarain
Trade and Industrial Policy Strategies (TIPS)
NCPC Industrial Efficiency Conference
Cape Town, South Africa, 14-15 September 2017
in partnership with
2
 No definition or agreement on
what constitutes green trade and
industry (or its predecessor:
environmental goods and
services)
 Globally, many different
understandings of green trade
and industry
 All efforts are the product of
political processes
◦ Focus on trade liberalisation
◦ Primarily about promoting
national interest
◦ Raises debates over how green
some products are
Source: Montmasson-Clair, et al., 2017
Overlap among products in three lists of
environmental goods
3
0
50
100
150
200
250
300
350
400 2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
$thousands
Cleaner technologies and
products
Environmental monitoring,
analysis and assessment
Heat/energy savings and
management
Noise and vibration abatement
Pollution management
Remediation and cleanup
Renewable energy
Solid waste management
Wastewater management
Water Supply
World trade of green goods, from 2001 to 2016
Source: Montmasson-Clair, et al., 2017, based on
Trademap data
4
 A complex market
◦ Dynamic, rapidly changing technology
◦ Certain products dominated by a few countries
◦ Others extremely competitive environment
◦ Driven by government intervention – includes local content,
standards, other barriers
◦ Issues of capability
◦ Intellectual property crucial
 Barriers to entry of global market
◦ New products but close link with existing industries
◦ Large returns to R&D
◦ Local Procurement programmes
◦ Standards
Growth ≠ Opportunity ≠ Market
5
Trade restrictiveness index of environmental goods
Source: de Melo, J & Vijil, M. 2014.
0%
10%
20%
30%
40%
50%
60%
70%
High income Upper middle Lower middle Low income
Tariffs & ad valorem equivalent
Tariffs only Non-tariff barriers included
Source: de Melo & Vijil, 2014
6
Support for
green
industries
Trade and
industrial
Policy
Greening of
industries
The interplay between the
transition to a green economy
and trade and industrial policy
A representation of instruments for fostering the
transition to a green industrial development
Source: UNIDO, 2011Source: Montmasson-Clair et al., 2017
Source: Montmasson-Clair et al., 2017 7
8
Trade in Green Goods, Short List RCA Share Growth Rank
Catalytic Converters 17.3 11.20% 1.00% 1
Lead products (often for waste
storage)
6.4 3.80% 9.60% 6
Fuel Cells 4.7 2.80% -1.80% 4
Sewage treatment equipment 4 2.60% 7.50% 10
Pumps for liquids 3.9 2.30% 8.20% 2
Recycling Equipment 2.8 1.60% 11.00% 8
AC generator for renewable energy 1.5 0.80% 7.90% 9
Tanks for sewage treatment 1.4 0.90% 9.60% 3
Cleaner paints and varnishes 1.3 0.80% 12.00% 5
Parts for incinerators 1.2 0.70% 14.90% 7
Incinerators 1 0.60% 27.80% 12
Biomass boilers 0.8 0.50% 37.40% 11
Metrics of South Africa's exports of select green goods
Source: Montmasson-Clair, et al., 2017, based on
Trademap data
9
Trade in Green Goods, Short List Medium-Term
Growth, 1991 -
2015
Short-Term
Growth, 2010 -
2015
Steam Turbines 272 491% -78%
PV Semiconductors 2087% 241%
Waste handling equipment 296% 71%
Recycling Equipment 281% 198%
Wind turbine generators 239 557% 50 757%
Wind turbine generator parts 12 358% 2 276%
Wastewater Screens/strainers 432% 101%
Wind turbine gearing 351% 74%
Steam Turbine Parts 2 346% 8%
Filtration/Purification System Parts 695% 119%
Monitoring/Regulating Equipment
(Manostats)
220% 68%
Monitoring/Regulating Equipment (Other) 140% 7%
Growth in South Africa’s import of select green goods
Source: Montmasson-Clair, et al., 2017, based on
Trademap data
10HIGH MEDIUM LOW NONE
Document
Promotion of
green industries
/ technologies
Promotion of green
import substitution
industrialisation
Promotion of
green export
potential
National
National Development Plan
Ten Year Innovation Plan
New Growth Path
Medium-term Strategic Framework 2014 – 2019
Industrial Policy Action Plans (IPAP)
National Export Strategy (summary of research findings)
The National Exporter Development Programme (NEDP)
National
(green
related)
The National Strategy for Sustainable Development and Action Plan
Green Economy Accord
National Climate Change Response Whitepaper
National(sectoral)
Integrated Resource Plan 2010 – 2030
The Energy Security Master Plan – Liquid fuels
Draft Position Paper on the South African Biofuels Regulatory
Framework
Sector strategy: wind and solar
National Transport Master Plan
Green Transport Strategy (draft)
National Climate Change Response Strategy for the Water Sector
National Waste Management Strategy
National Biodiversity Strategy and Action Plan
Integrated Growth and Development Plan (IGDP) - Agriculture,
Forestry, and Fisheries
Agricultural Policy Action Plan
Source: Montmasson-Clair et al., 2017
0
10,000
20,000
30,000
40,000
50,000
ALTERNATIVE
ENERGY
PRODUCTION
WASTE
MANAGEMENT
AGRICULTURE/
FORESTRY
ENERGY
CONSERVATION
TRANSPORTATION ADMINISTRATIVE,
REGULATORY OR
DESIGN ASPECTS
NUCLEAR POWER
GENERATION
11
Note: the data includes both granted and pending patents; the sum of the categories
is larger than the total number of patents due to numerous patents featuring in more
than one category
Total number of ‘green’
patent applications: 100 442
over the 1977-2016 period
Source: Montmasson-Clair et al., 2017, based on CIPC data
12
 More a category/
production process
than a specific
product
 Global market for
biopolymers
expected to grow
from 1.4 million
tonnes in 2015 to
6.2 million tonnes in
2019
 Number of
commitments by
firms and countries
Global production capacities of bioplastics in 2016,
by market segment
13
100
150
200
250
300
350
400
450
500
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Ethylene Polymers Propylene Polymers Styrene Polymers Vinyl Chloride Polymers
 Biopolymers/bioplastics among the highest potential for SA
 Broad range of product categories
 Universal usage
 Complementarity with existing industry
Index of global trade in plastics polymers, from 2001 to 2015 (2001 = 100)
Source: Montmasson-Clair, et al., 2017, based on
Trademap data
14
-350000
-250000
-150000
-50000
50000
150000
250000
350000
450000
2001 2003 2005 2007 2009 2011 2013 2015
US$'000
Ethylene Polymers Propylene Polymers
Styrene Polymers Vinyl Chloride Polymers
Vinyl Acetate Polymers Acrylic Polymers
 SA’s plastics sector is
valued at ZAR 50.4
billion in 2013 and
employs approximately
60 000 people
◦ Majority of the
industry (53%) is
concentrated in the
packaging sector
◦ Remainder is divided
between a wide
range of other
applications
(construction,
automotive,
electrical).
Net South African trade in plastics polymers
Source: Montmasson-Clair, et al., 2017, based on
Trademap data
Inputs
 Concerns around availability of supply
 Doubts over whether biocomposites alone
could create adequate supply
 Which feedstock: technology vs availability?
15
Productive complementarity
 Few specialist biocomposite firms
 Large plastics firms expanding
 Still dominated by foreign chemicals
companies
Technology
 CSIR Centre for Biocomposites
 Nelson Mandela Bay Composites Cluster
 A range of university projects
 Foreign firms own most leading
technologies
Client and
partnerships
Initiatives
Airbus Interior panels for
airplanes
BIRN International
Biocomposites Network
Bombardier Interior panels for train
carriages
Chemcity Biocomposites for
construction industry
De Gama, Frame, Brits
Textiles
Natural fibre composites
Experico Packaging
IDC Sisal fibre production
Sustainable Fibre
Solutions
Kenaf processing
The House of Hemp
and Hemporium
Establishment of hemp
industry
University of Delaware Biopolymers for housing
Volkswagen Parcel tray
Woolworths and
suppliers
Characterisation
 The growth of green industries does not automatically mean
export opportunities
◦ Substantial trade barriers
◦ Technological barriers
◦ Need to be selective in which industries are supported for
export
◦ Many opportunities in the less glamourous areas
 Import substitution remains important
 Rapidly developing space requires policy stability
◦ Proven ability of policy to drive development
◦ But needs to follow through as the space changes
 Technology pipeline needs to be strengthened
◦ Familiar problems of bringing technology to market
 Read the report and carry out more targeted, in-depth analysis!
16
Trade & Industrial Policy Strategies
Supporting policy development
through research and dialogue
Gaylor Montmasson-Clair
Senior Economist: Sustainable Growth
gaylor@tips.org.za / +27 12 433 93 40
www.tips.org.za

More Related Content

Similar to Gaylor montmasson

Green technology 06 42_50
Green technology 06 42_50Green technology 06 42_50
Green technology 06 42_50
domsr
 
Break out session - Technology and processes for sustainability
Break out session - Technology and processes for sustainabilityBreak out session - Technology and processes for sustainability
Break out session - Technology and processes for sustainability
cjno
 
Supply chain & customer collaboration dhl exel sc (15 oct08)
Supply chain & customer collaboration dhl exel sc (15 oct08)Supply chain & customer collaboration dhl exel sc (15 oct08)
Supply chain & customer collaboration dhl exel sc (15 oct08)
ECR Community
 
Supply chain & customer collaboration dhl exel sc (15 oct08)
Supply chain & customer collaboration dhl exel sc (15 oct08)Supply chain & customer collaboration dhl exel sc (15 oct08)
Supply chain & customer collaboration dhl exel sc (15 oct08)
ECR Community
 
Jeremy Jacobs Comp Ass 231107 (2)
Jeremy Jacobs Comp Ass 231107 (2)Jeremy Jacobs Comp Ass 231107 (2)
Jeremy Jacobs Comp Ass 231107 (2)
nationalrural
 

Similar to Gaylor montmasson (20)

Sustainable Brands Kuala Lumpur, Daniel Loh BASF
Sustainable Brands Kuala Lumpur, Daniel Loh BASFSustainable Brands Kuala Lumpur, Daniel Loh BASF
Sustainable Brands Kuala Lumpur, Daniel Loh BASF
 
Green February 2010
Green February 2010Green February 2010
Green February 2010
 
Green technology 06 42_50
Green technology 06 42_50Green technology 06 42_50
Green technology 06 42_50
 
Green manufacturing
Green manufacturingGreen manufacturing
Green manufacturing
 
Guillaume Massard: Opening new markets with Industrial Symbiosis
Guillaume Massard: Opening new markets with Industrial SymbiosisGuillaume Massard: Opening new markets with Industrial Symbiosis
Guillaume Massard: Opening new markets with Industrial Symbiosis
 
Parallel Session B - Presentation by Asaf Tzachor
Parallel Session B - Presentation by Asaf TzachorParallel Session B - Presentation by Asaf Tzachor
Parallel Session B - Presentation by Asaf Tzachor
 
Break out session - Technology and processes for sustainability
Break out session - Technology and processes for sustainabilityBreak out session - Technology and processes for sustainability
Break out session - Technology and processes for sustainability
 
Future Cities Africa 2015
Future Cities Africa 2015Future Cities Africa 2015
Future Cities Africa 2015
 
Business And The Sustainable Development Landscape
Business And The Sustainable Development LandscapeBusiness And The Sustainable Development Landscape
Business And The Sustainable Development Landscape
 
Developing bio based products
Developing bio based productsDeveloping bio based products
Developing bio based products
 
Implementing a national MRV system in the Framework of the South African Clim...
Implementing a national MRV system in the Framework of the South African Clim...Implementing a national MRV system in the Framework of the South African Clim...
Implementing a national MRV system in the Framework of the South African Clim...
 
Session III Sangyong Kim
Session III Sangyong KimSession III Sangyong Kim
Session III Sangyong Kim
 
Erste bank
Erste bankErste bank
Erste bank
 
Business and Sustainable Development - The Green Race is On
Business and Sustainable Development - The Green Race is OnBusiness and Sustainable Development - The Green Race is On
Business and Sustainable Development - The Green Race is On
 
Supply chain & customer collaboration dhl exel sc (15 oct08)
Supply chain & customer collaboration dhl exel sc (15 oct08)Supply chain & customer collaboration dhl exel sc (15 oct08)
Supply chain & customer collaboration dhl exel sc (15 oct08)
 
Supply chain & customer collaboration dhl exel sc (15 oct08)
Supply chain & customer collaboration dhl exel sc (15 oct08)Supply chain & customer collaboration dhl exel sc (15 oct08)
Supply chain & customer collaboration dhl exel sc (15 oct08)
 
OECD Workshop: Measuring Business Impacts on People’s Well-being, Nashat Moin
OECD Workshop: Measuring Business Impacts on People’s Well-being, Nashat MoinOECD Workshop: Measuring Business Impacts on People’s Well-being, Nashat Moin
OECD Workshop: Measuring Business Impacts on People’s Well-being, Nashat Moin
 
CT Revolution
CT RevolutionCT Revolution
CT Revolution
 
Sustainability in Cement Industry | Rakesh Bhargava, Chief Climate & Sustaina...
Sustainability in Cement Industry | Rakesh Bhargava, Chief Climate & Sustaina...Sustainability in Cement Industry | Rakesh Bhargava, Chief Climate & Sustaina...
Sustainability in Cement Industry | Rakesh Bhargava, Chief Climate & Sustaina...
 
Jeremy Jacobs Comp Ass 231107 (2)
Jeremy Jacobs Comp Ass 231107 (2)Jeremy Jacobs Comp Ass 231107 (2)
Jeremy Jacobs Comp Ass 231107 (2)
 

More from 7391456

Thabo - Waste Mgt Research & Incentives - Industrial Efficiency Conference (S...
Thabo - Waste Mgt Research & Incentives - Industrial Efficiency Conference (S...Thabo - Waste Mgt Research & Incentives - Industrial Efficiency Conference (S...
Thabo - Waste Mgt Research & Incentives - Industrial Efficiency Conference (S...
7391456
 

More from 7391456 (20)

Proudly SA
Proudly SAProudly SA
Proudly SA
 
Sanedi
SanediSanedi
Sanedi
 
Cecilia Kinuthia Njenga
Cecilia Kinuthia NjengaCecilia Kinuthia Njenga
Cecilia Kinuthia Njenga
 
WWF Klaudia NCPC - 14 September 2017
WWF Klaudia NCPC - 14 September 2017WWF Klaudia NCPC - 14 September 2017
WWF Klaudia NCPC - 14 September 2017
 
New Edition Bridget Fundikwa - Green Cape
New Edition Bridget Fundikwa - Green CapeNew Edition Bridget Fundikwa - Green Cape
New Edition Bridget Fundikwa - Green Cape
 
Henry Roman
Henry RomanHenry Roman
Henry Roman
 
Chantal Ramcharan Kotze
Chantal Ramcharan KotzeChantal Ramcharan Kotze
Chantal Ramcharan Kotze
 
Harro von Blotnitz
Harro von BlotnitzHarro von Blotnitz
Harro von Blotnitz
 
Pippa Notten
Pippa NottenPippa Notten
Pippa Notten
 
Nick Tandi
Nick TandiNick Tandi
Nick Tandi
 
Claire Pengelly
Claire PengellyClaire Pengelly
Claire Pengelly
 
David Ball - Hulamin
David Ball - HulaminDavid Ball - Hulamin
David Ball - Hulamin
 
Dr Mathias Scluep Presentation
Dr Mathias Scluep PresentationDr Mathias Scluep Presentation
Dr Mathias Scluep Presentation
 
Nydia Suppen
Nydia SuppenNydia Suppen
Nydia Suppen
 
Helen Davies
Helen DaviesHelen Davies
Helen Davies
 
Thabo - Waste Mgt Research & Incentives - Industrial Efficiency Conference (S...
Thabo - Waste Mgt Research & Incentives - Industrial Efficiency Conference (S...Thabo - Waste Mgt Research & Incentives - Industrial Efficiency Conference (S...
Thabo - Waste Mgt Research & Incentives - Industrial Efficiency Conference (S...
 
Marten Jansen van Rensburg
Marten Jansen van RensburgMarten Jansen van Rensburg
Marten Jansen van Rensburg
 
Linda Godfrey - Circular Economy NCPC-SA
Linda Godfrey - Circular Economy NCPC-SALinda Godfrey - Circular Economy NCPC-SA
Linda Godfrey - Circular Economy NCPC-SA
 
Henry Nuwarinda - NCPC-SA
Henry Nuwarinda - NCPC-SAHenry Nuwarinda - NCPC-SA
Henry Nuwarinda - NCPC-SA
 
Eco Match - MCPC Conference- Craig
Eco Match - MCPC Conference- CraigEco Match - MCPC Conference- Craig
Eco Match - MCPC Conference- Craig
 

Recently uploaded

Disaster risk reduction management Module 4: Preparedness, Prevention and Mit...
Disaster risk reduction management Module 4: Preparedness, Prevention and Mit...Disaster risk reduction management Module 4: Preparedness, Prevention and Mit...
Disaster risk reduction management Module 4: Preparedness, Prevention and Mit...
BrixsonLajara
 
Dubai Escorts Service 0508644382 Escorts in Dubai
Dubai Escorts Service 0508644382 Escorts in DubaiDubai Escorts Service 0508644382 Escorts in Dubai
Dubai Escorts Service 0508644382 Escorts in Dubai
Monica Sydney
 

Recently uploaded (20)

2024-05-08 Composting at Home 101 for the Rotary Club of Pinecrest.pptx
2024-05-08 Composting at Home 101 for the Rotary Club of Pinecrest.pptx2024-05-08 Composting at Home 101 for the Rotary Club of Pinecrest.pptx
2024-05-08 Composting at Home 101 for the Rotary Club of Pinecrest.pptx
 
Fuel Cells and Hydrogen in Transportation - An Introduction
Fuel Cells and Hydrogen in Transportation - An IntroductionFuel Cells and Hydrogen in Transportation - An Introduction
Fuel Cells and Hydrogen in Transportation - An Introduction
 
Russian Call girl Dubai 0503464457 Dubai Call girls
Russian Call girl Dubai 0503464457 Dubai Call girlsRussian Call girl Dubai 0503464457 Dubai Call girls
Russian Call girl Dubai 0503464457 Dubai Call girls
 
Disaster risk reduction management Module 4: Preparedness, Prevention and Mit...
Disaster risk reduction management Module 4: Preparedness, Prevention and Mit...Disaster risk reduction management Module 4: Preparedness, Prevention and Mit...
Disaster risk reduction management Module 4: Preparedness, Prevention and Mit...
 
Cyclone Case Study Odisha 1999 Super Cyclone in India.
Cyclone Case Study Odisha 1999 Super Cyclone in India.Cyclone Case Study Odisha 1999 Super Cyclone in India.
Cyclone Case Study Odisha 1999 Super Cyclone in India.
 
Low Rate Call Girls Boudh 9332606886 HOT & SEXY Models beautiful and charmin...
Low Rate Call Girls Boudh  9332606886 HOT & SEXY Models beautiful and charmin...Low Rate Call Girls Boudh  9332606886 HOT & SEXY Models beautiful and charmin...
Low Rate Call Girls Boudh 9332606886 HOT & SEXY Models beautiful and charmin...
 
Water Pollution
Water Pollution Water Pollution
Water Pollution
 
Call Girls in Dattatreya Nagar / 8250092165 Genuine Call girls with real Phot...
Call Girls in Dattatreya Nagar / 8250092165 Genuine Call girls with real Phot...Call Girls in Dattatreya Nagar / 8250092165 Genuine Call girls with real Phot...
Call Girls in Dattatreya Nagar / 8250092165 Genuine Call girls with real Phot...
 
Vip Salem Call Girls 8250092165 Low Price Escorts Service in Your Area
Vip Salem Call Girls 8250092165 Low Price Escorts Service in Your AreaVip Salem Call Girls 8250092165 Low Price Escorts Service in Your Area
Vip Salem Call Girls 8250092165 Low Price Escorts Service in Your Area
 
Jumping Scales and Producing peripheries.pptx
Jumping Scales and Producing peripheries.pptxJumping Scales and Producing peripheries.pptx
Jumping Scales and Producing peripheries.pptx
 
Hook Up Call Girls Rajgir 9332606886 High Profile Call Girls You Can Get T...
Hook Up Call Girls Rajgir   9332606886  High Profile Call Girls You Can Get T...Hook Up Call Girls Rajgir   9332606886  High Profile Call Girls You Can Get T...
Hook Up Call Girls Rajgir 9332606886 High Profile Call Girls You Can Get T...
 
Call Girls in Tiruppur 9332606886 ust Genuine Escort Model Sevice
Call Girls in Tiruppur  9332606886  ust Genuine Escort Model SeviceCall Girls in Tiruppur  9332606886  ust Genuine Escort Model Sevice
Call Girls in Tiruppur 9332606886 ust Genuine Escort Model Sevice
 
Call Girl in Faridabad ₹7.5k Pick Up & Drop With Cash Payment #8168257667
Call Girl in Faridabad ₹7.5k Pick Up & Drop With Cash Payment #8168257667Call Girl in Faridabad ₹7.5k Pick Up & Drop With Cash Payment #8168257667
Call Girl in Faridabad ₹7.5k Pick Up & Drop With Cash Payment #8168257667
 
Delivery in 20 Mins Call Girls Dungarpur 9332606886Call Girls Advance Cash O...
Delivery in 20 Mins Call Girls Dungarpur  9332606886Call Girls Advance Cash O...Delivery in 20 Mins Call Girls Dungarpur  9332606886Call Girls Advance Cash O...
Delivery in 20 Mins Call Girls Dungarpur 9332606886Call Girls Advance Cash O...
 
Climate Change
Climate ChangeClimate Change
Climate Change
 
Presentation: Farmer-led climate adaptation - Project launch and overview by ...
Presentation: Farmer-led climate adaptation - Project launch and overview by ...Presentation: Farmer-led climate adaptation - Project launch and overview by ...
Presentation: Farmer-led climate adaptation - Project launch and overview by ...
 
Dubai Escorts Service 0508644382 Escorts in Dubai
Dubai Escorts Service 0508644382 Escorts in DubaiDubai Escorts Service 0508644382 Escorts in Dubai
Dubai Escorts Service 0508644382 Escorts in Dubai
 
Trusted call girls in Fatehabad 9332606886 High Profile Call Girls You Can...
Trusted call girls in Fatehabad   9332606886  High Profile Call Girls You Can...Trusted call girls in Fatehabad   9332606886  High Profile Call Girls You Can...
Trusted call girls in Fatehabad 9332606886 High Profile Call Girls You Can...
 
Call Girls Brigade Road ( 8250092165 ) Cheap rates call girls | Get low budget
Call Girls Brigade Road ( 8250092165 ) Cheap rates call girls | Get low budgetCall Girls Brigade Road ( 8250092165 ) Cheap rates call girls | Get low budget
Call Girls Brigade Road ( 8250092165 ) Cheap rates call girls | Get low budget
 
Russian Call girls in Dubai 0508644382 Dubai Call girls
Russian Call girls in Dubai 0508644382 Dubai Call girlsRussian Call girls in Dubai 0508644382 Dubai Call girls
Russian Call girls in Dubai 0508644382 Dubai Call girls
 

Gaylor montmasson

  • 1. Gaylor Montmasson-Clair, Christopher Wood, Shakespear Mudombi and Bhavna Deonarain Trade and Industrial Policy Strategies (TIPS) NCPC Industrial Efficiency Conference Cape Town, South Africa, 14-15 September 2017 in partnership with
  • 2. 2  No definition or agreement on what constitutes green trade and industry (or its predecessor: environmental goods and services)  Globally, many different understandings of green trade and industry  All efforts are the product of political processes ◦ Focus on trade liberalisation ◦ Primarily about promoting national interest ◦ Raises debates over how green some products are Source: Montmasson-Clair, et al., 2017 Overlap among products in three lists of environmental goods
  • 3. 3 0 50 100 150 200 250 300 350 400 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $thousands Cleaner technologies and products Environmental monitoring, analysis and assessment Heat/energy savings and management Noise and vibration abatement Pollution management Remediation and cleanup Renewable energy Solid waste management Wastewater management Water Supply World trade of green goods, from 2001 to 2016 Source: Montmasson-Clair, et al., 2017, based on Trademap data
  • 4. 4  A complex market ◦ Dynamic, rapidly changing technology ◦ Certain products dominated by a few countries ◦ Others extremely competitive environment ◦ Driven by government intervention – includes local content, standards, other barriers ◦ Issues of capability ◦ Intellectual property crucial  Barriers to entry of global market ◦ New products but close link with existing industries ◦ Large returns to R&D ◦ Local Procurement programmes ◦ Standards Growth ≠ Opportunity ≠ Market
  • 5. 5 Trade restrictiveness index of environmental goods Source: de Melo, J & Vijil, M. 2014. 0% 10% 20% 30% 40% 50% 60% 70% High income Upper middle Lower middle Low income Tariffs & ad valorem equivalent Tariffs only Non-tariff barriers included Source: de Melo & Vijil, 2014
  • 6. 6 Support for green industries Trade and industrial Policy Greening of industries The interplay between the transition to a green economy and trade and industrial policy A representation of instruments for fostering the transition to a green industrial development Source: UNIDO, 2011Source: Montmasson-Clair et al., 2017
  • 8. 8 Trade in Green Goods, Short List RCA Share Growth Rank Catalytic Converters 17.3 11.20% 1.00% 1 Lead products (often for waste storage) 6.4 3.80% 9.60% 6 Fuel Cells 4.7 2.80% -1.80% 4 Sewage treatment equipment 4 2.60% 7.50% 10 Pumps for liquids 3.9 2.30% 8.20% 2 Recycling Equipment 2.8 1.60% 11.00% 8 AC generator for renewable energy 1.5 0.80% 7.90% 9 Tanks for sewage treatment 1.4 0.90% 9.60% 3 Cleaner paints and varnishes 1.3 0.80% 12.00% 5 Parts for incinerators 1.2 0.70% 14.90% 7 Incinerators 1 0.60% 27.80% 12 Biomass boilers 0.8 0.50% 37.40% 11 Metrics of South Africa's exports of select green goods Source: Montmasson-Clair, et al., 2017, based on Trademap data
  • 9. 9 Trade in Green Goods, Short List Medium-Term Growth, 1991 - 2015 Short-Term Growth, 2010 - 2015 Steam Turbines 272 491% -78% PV Semiconductors 2087% 241% Waste handling equipment 296% 71% Recycling Equipment 281% 198% Wind turbine generators 239 557% 50 757% Wind turbine generator parts 12 358% 2 276% Wastewater Screens/strainers 432% 101% Wind turbine gearing 351% 74% Steam Turbine Parts 2 346% 8% Filtration/Purification System Parts 695% 119% Monitoring/Regulating Equipment (Manostats) 220% 68% Monitoring/Regulating Equipment (Other) 140% 7% Growth in South Africa’s import of select green goods Source: Montmasson-Clair, et al., 2017, based on Trademap data
  • 10. 10HIGH MEDIUM LOW NONE Document Promotion of green industries / technologies Promotion of green import substitution industrialisation Promotion of green export potential National National Development Plan Ten Year Innovation Plan New Growth Path Medium-term Strategic Framework 2014 – 2019 Industrial Policy Action Plans (IPAP) National Export Strategy (summary of research findings) The National Exporter Development Programme (NEDP) National (green related) The National Strategy for Sustainable Development and Action Plan Green Economy Accord National Climate Change Response Whitepaper National(sectoral) Integrated Resource Plan 2010 – 2030 The Energy Security Master Plan – Liquid fuels Draft Position Paper on the South African Biofuels Regulatory Framework Sector strategy: wind and solar National Transport Master Plan Green Transport Strategy (draft) National Climate Change Response Strategy for the Water Sector National Waste Management Strategy National Biodiversity Strategy and Action Plan Integrated Growth and Development Plan (IGDP) - Agriculture, Forestry, and Fisheries Agricultural Policy Action Plan Source: Montmasson-Clair et al., 2017
  • 11. 0 10,000 20,000 30,000 40,000 50,000 ALTERNATIVE ENERGY PRODUCTION WASTE MANAGEMENT AGRICULTURE/ FORESTRY ENERGY CONSERVATION TRANSPORTATION ADMINISTRATIVE, REGULATORY OR DESIGN ASPECTS NUCLEAR POWER GENERATION 11 Note: the data includes both granted and pending patents; the sum of the categories is larger than the total number of patents due to numerous patents featuring in more than one category Total number of ‘green’ patent applications: 100 442 over the 1977-2016 period Source: Montmasson-Clair et al., 2017, based on CIPC data
  • 12. 12  More a category/ production process than a specific product  Global market for biopolymers expected to grow from 1.4 million tonnes in 2015 to 6.2 million tonnes in 2019  Number of commitments by firms and countries Global production capacities of bioplastics in 2016, by market segment
  • 13. 13 100 150 200 250 300 350 400 450 500 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Ethylene Polymers Propylene Polymers Styrene Polymers Vinyl Chloride Polymers  Biopolymers/bioplastics among the highest potential for SA  Broad range of product categories  Universal usage  Complementarity with existing industry Index of global trade in plastics polymers, from 2001 to 2015 (2001 = 100) Source: Montmasson-Clair, et al., 2017, based on Trademap data
  • 14. 14 -350000 -250000 -150000 -50000 50000 150000 250000 350000 450000 2001 2003 2005 2007 2009 2011 2013 2015 US$'000 Ethylene Polymers Propylene Polymers Styrene Polymers Vinyl Chloride Polymers Vinyl Acetate Polymers Acrylic Polymers  SA’s plastics sector is valued at ZAR 50.4 billion in 2013 and employs approximately 60 000 people ◦ Majority of the industry (53%) is concentrated in the packaging sector ◦ Remainder is divided between a wide range of other applications (construction, automotive, electrical). Net South African trade in plastics polymers Source: Montmasson-Clair, et al., 2017, based on Trademap data
  • 15. Inputs  Concerns around availability of supply  Doubts over whether biocomposites alone could create adequate supply  Which feedstock: technology vs availability? 15 Productive complementarity  Few specialist biocomposite firms  Large plastics firms expanding  Still dominated by foreign chemicals companies Technology  CSIR Centre for Biocomposites  Nelson Mandela Bay Composites Cluster  A range of university projects  Foreign firms own most leading technologies Client and partnerships Initiatives Airbus Interior panels for airplanes BIRN International Biocomposites Network Bombardier Interior panels for train carriages Chemcity Biocomposites for construction industry De Gama, Frame, Brits Textiles Natural fibre composites Experico Packaging IDC Sisal fibre production Sustainable Fibre Solutions Kenaf processing The House of Hemp and Hemporium Establishment of hemp industry University of Delaware Biopolymers for housing Volkswagen Parcel tray Woolworths and suppliers Characterisation
  • 16.  The growth of green industries does not automatically mean export opportunities ◦ Substantial trade barriers ◦ Technological barriers ◦ Need to be selective in which industries are supported for export ◦ Many opportunities in the less glamourous areas  Import substitution remains important  Rapidly developing space requires policy stability ◦ Proven ability of policy to drive development ◦ But needs to follow through as the space changes  Technology pipeline needs to be strengthened ◦ Familiar problems of bringing technology to market  Read the report and carry out more targeted, in-depth analysis! 16
  • 17. Trade & Industrial Policy Strategies Supporting policy development through research and dialogue Gaylor Montmasson-Clair Senior Economist: Sustainable Growth gaylor@tips.org.za / +27 12 433 93 40 www.tips.org.za

Editor's Notes

  1. Stylised Results Focus on components that leverage off pre-existing industries Gearing, glass, basic electronics, etc. Big ticket items not clearly viable yet Regional markets not major driver yet (according to ITP analysis) Bright spots: incinerators, biomass boilers (albeit from low base) Only major export advantage is in catalytic convertors Results of Green Trade Analysis Scale of trade still quite low (except for catalytic convertors) Categories for ‘green trade’ cover a large number of products Can only get a rough picture
  2. Little established manufacturing capacity, so focus is on 3 components of the VC