There are so many ESG-related publications and developments that it is hard to keep abreast of them all. For this reason, HSF publishes a monthly tracker of ESG-related publications and developments, with a primary focus on developments that may be of most interest to or impact our clients in the Southern African Development Community, be they corporates, asset managers or asset owners.
If you have any ESG-related questions, please get in touch with your usual contact at HSF who will be able to direct you as appropriate.
This issue covers the period from 1 to 30 June 2023.
BOTSWANA
16 June 2023
It has been reported that the World Bank Board of Directors approved a Development Policy Loan (DPL) to the Government of Botswana, aimed at supporting reforms to stimulate inclusive, resilient and low-carbon growth following the combined impacts of the COVID-19 pandemic and the global food, energy and climate shocks. The USD 150 million Economic Resilience and Green Recovery DPL II is the second in a programmatic series of two operations, following the disbursement of USD250 million under the first loan approved in June 2021. This second operation builds on the government's program and progress made to strengthen social protection, improve access to finance by small businesses, and prioritize energy access and a move toward a low-carbon recovery.
MALAWI
9 June 2023
It has been reported that the Global Environment Facility has approved USD4.4 million in funding for a project that aims at reducing the impacts of climate change on vulnerable rural communities in Malawi's Lake Chilwa basin. Supported by the United Nations Development Programme, the five-year project, known as 'TRANSFORM', aims to enhance the resilience of vulnerable rural communities by bolstering their natural, human, and economic adaptive capacities by catalysing a shift away from maladaptive practices that degrade natural resources and simultaneously reducing the country's greenhouse gas emissions. Around 80,000 people in Machinga, Zomba, and Phalombe districts are to directly benefit from this project.
23 June 2023
It has been reported that Malawi has created an agency to oversee its trade and marketing of carbon emission offsets. Malawi's announcement is the latest attempt by an African government to profit from the growing trade in offsets. "Using the prevailing global market prices, the potential value of Malawi's carbon credits is estimated at 19.9 million metric tonnes of carbon per annum, valued at over USD600 million," President Chakwera said at the inauguration of the Carbon Marketing Initiative.
MAURITIUS
26 June 2023
The National Biomass Framework was recently launched at the Mauritius Cane Industry Authority. The framework is in line with government's objective of phasing out the use of coal in electricity generation by 2030 and achieving a target of 60% of the country's energy needs from green/renewable sources. The objectives of the National Biomass Framework are to increase bioelectricity production by promoting and implementing projects for more efficient use of sugarcane bagasse, more trash collection, introduction of higher fibre cane varieties, cultivation of other energy crops, and biomass import.
MOZAMBIQUE
21 June 2023
On 21 June 2023, the environmental campaigners, Friends of the Earth, said that they had failed to secure permission to challenge a UK government decision to facilitate investment of up to USD1.15 billion in a Mozambique gas field. In September 2020, Friends of the Earth issued a legal challenge to the UK Government's decision to provide around USD1.15 billion of UK taxpayer support for a huge liquified natural gas development in Mozambique. The matter was taken to the Court of Appeal in December 2022, but in January 2023 it rejected the legal challenge. To this end, in February 2023, Friends of the Earth filed an appeal to the Supreme Court. However, in June 2023 the Supreme Court ruled that the appeal was "unarguable," meaning the case cannot be taken further.
NAMIBIA
8 June 2023
It has been reported that Namibia has banned the export of unprocessed crushed lithium ore, cobalt, manganese, graphite and rare earth minerals, as it seeks to profit from growing global demand for metals used in clean energy technologies. Namibia has significant deposits of lithium, which is vital for renewable energy storage, as well as rare earth minerals such as dysprosium and terbium needed for permanent magnets in the batteries of electric cars and wind turbines.
16 June 2023
It has been reported that, following a SWAPO Central Committee resolution to direct government to 'immediately' take executive and legislative steps to define 'spouse' in the Immigration Control Act as a union between a man and a woman, the Ministry of Home Affairs, Immigration, Safety and Security has announced it will comply with the Supreme Court's ruling to recognise same-sex marriages validly concluded outside the country. On 16 May 2023, the Supreme Courtof Namibia ordered government to recognise same-sex marriages validly concluded outside of Namibia. It was held that the Ministry's interpretation of 'spouse' in the Immigration Control Act 7 of 1993 to exclude same-sex couples infringes on their right to dignity and equality. The legal effect of the judgment is that foreign spouses of Namibian citizens in same-sex marriages validly concluded in another jurisdiction will now enjoy the same privileges as those in heterosexual unions.
SOUTH AFRICA
14 June 2023
The Minister of Forestry, Fisheries and the Environment published the white paper on Conservation and Sustainable Use of South Africa's Biodiversity (the White Paper). The White Paper was developed to promote the conservation of the rich biodiversity and ecological infrastructure that supports ecosystems functioning for livelihoods and the well-being of people and nature. It is envisaged that the White Paper will set the country on a strong path of sustainable development, considering the historical, socio-economic, and environmental context of South Africa, including the aspirations and needs of people.
15 June 2023
On 15 June 2023, the Minister of Employment and Labour (after consultation with the Compensation Board), gave notice of the proposed Regulations pertaining to Rehabilitation, Reintegration and Return-to-Work of Employees Injured or Diseased as a result of the work environment or an incident at work. The proposed regulations were published for public comment. Interested members of the public are invited to submit written comments by 15 July 2023 to the Department of Employment and Labour.
21 June 2023
It has been reported that South Africa has launched a dedicated fund that aims to raise USD1 billion in funding for the construction of a substantial pipeline of green hydrogen projects in the country to help facilitate its transition away from an energy system based on fossil fuels. The fund has been dubbed SA-H3 and its purpose is to fast-track the development of large-scale green hydrogen infrastructure assets across South Africa.
23 June 2023
The Department of Forestry, Fisheries and Environment published the National Biodiversity Offset Guideline (Guideline) issued in terms of section 24J of the National Environment Management Act, 1998 (NEMA). Biodiversity offsetting has been identified as one way in which biodiversity loss can be slowed down. A biodiversity offset is required when a proposed listed or specified activity, or activities, is/are likely to have residual negative impacts on biodiversity of medium or high significance. These negative impacts could affect biodiversity patterns, ecological processes, ecosystem services or a combination of all three. The purpose of the Guideline is to indicate when biodiversity offsets are likely to be required as mitigation by any competent authority to lay down basic principles for biodiversity offsetting and to guide offset practice in the environmental authorisation application context. The Guideline does not replace NEMA's provisions regarding environmental assessment processes, or the Environmental Impact Assessment Regulations (Regulations). It guides the implementation of NEMA and the Regulations in the context of mitigation of biodiversity impacts and use of biodiversity offsets.
24 June 2023
It is reported that Eskom has been reportedly been granted an exemption to operate Kusile power station, in Mpumalanga, without the technology that is needed to reduce harmful sulphur dioxide emissions. The exemption is temporary and will apply until 31 March 2025. This despite a previous High Court ruling that the air quality in the area is so poor that it violates the constitutional right to an environment that is not harmful to health and well-being. The decision is likely to be appealed.
26 June 2023
The Department of Agriculture, Land Reform and Rural Development has announced a proposed ban on the use of two agricultural remedies, namely chlorpyrifos and cartap hydrochloride. The Department has invited public comment on the intended measure by 26 August 2023. The two compounds have been widely prohibited internationally after being linked to neurological effects in humans.
27 June 2023
The Constitutional Court has ruled that certain amendments to the country's waste management rules are invalid and unconstitutional because Parliament had not complied with its constitutional obligation to facilitate public participation in the legislative process as it had introduced significant changes to the definition of "waste" and related terms without consulting the public and affected stakeholders. The amendments had expanded the scope of "waste" to include any substance that the generator had no further use for in its processes, whether it had commercial value or not. This would have subjected a range of products that were never regulated as waste before to 'onerous' regulatory requirements and penalties. The applicants said they were not given an opportunity to make representations on the amendments when they were proposed by the Department of Forestry, Fisheries & Environment in June 2021. The Constitutional Court agreed with the applicants and declared that impugned provisions were invalid and unconstitutional. This is because the final version of "waste" was created after Parliament stopped public participation. Parliament offered no reason why it could not have facilitated further public interaction.
30 June 2023
The Public Procurement Bill, which was tabled in Parliament on 30 June 2023, aims to introduce uniform treasury norms and standards for all procuring institutions to implement their procurement systems as envisaged in section 217(1), read with section 216(1), of the Constitution and to determine a preferential procurement framework for all procuring institutions within which to implement their procurement policies as envisaged in section 217(2) and (3) of the Constitution. The uniform treasury norms and standards must, among others, ensure value for money in the use of public funds, advance ethical conduct and combat corruption advance transformation, beneficiation and industrialisation, stimulate economic development and promote a sustainable environment.
30 June 2023
The Department of Justice and Constitutional Development invites interested parties to submit written comments on the Discussion Document On Proposed Reforms For The Whistleblower Protection Regime In South Africa. The comments on the discussion paper must be submitted on or before 15 August 2023. This document looks at whistleblower protection from the point of view of the legal regime governing protected disclosures in South Africa and other jurisdictions. The report sets out to identify gaps within South Africa's legislative framework and further proposes recommendations in closing the identified gaps.
30 June 2023
It has been reported that South Africa and Germany have signed a joint declaration of intent to establish the South African German Hydrogen Task Force. The green hydrogen economy has been billed as a new frontier for clean energy as it emits low carbon emissions with a global potential of about USD300bn in exports. South Africa holds approximately 80% of the world's platinum group metals (PGMs) and 40% of the world's platinum and palladium supplies which are key components in the production of hydrogen - making South Africa potentially a key player in the future of the market. Cooperation between the two countries aims to link South African developers in the green hydrogen market with off takers in Germany looking at additional funding for projects and cooperation in creating projects in South Africa that are commercially viable that can meet international green hydrogen demand and supply. Green hydrogen is one of the five 'Big Frontiers' in President Cyril Ramaphosa's country investment strategy and an important endeavour in advancing the National Development Plan target of 30% of gross fixed capital formation (GFCF) to gross domestic product by 2030.
30 June 2023
President Cyril Ramaphosa published a Proclamation regarding the commencement of certain provisions of the National Environmental Management Laws Amendment Act, 2022 (NEMLAA 2022). The bulk of the provisions contained in the NEMLAA 2022 became effective on the same day. The NEMLAA 2022 amends the NEMA as well as several specific environmental management Acts. Apart from correcting and clarifying definitions and measures related to the making and adoption of environmental management instruments, appeal processes and financial provisioning requirements, it also sets new requirements related to NEMA section 24G rectification applications for environmental authorisation and waste management licenses.
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