Industrial competitiveness emerged as a key topic for debate on the second day of the Green Economy summit, in Johannesburg, as delegates started to grapple with the issues involved with the transition to a so-called green economy.

Industrial Development Corporation (IDC) head of research and information Jorge Maia explained that the South African industry was faced with diminishing competitiveness, particularly should the country face sanction in the context of possible future environmental levies and standards.

These standards could place punitive restrictions on energy-intensive products, and more particularly, carbon-intensive products. With an over 90% fossil fuel-based energy generation mix in South Africa, this could affect exports.

Environmental Affairs Deputy Director General Alf Wills said that border tax adjustments and tariffs were already being put forward by some developed nations within climate negotiations.

A transition to a green economy was heralded as one that could stimulate much-needed job creation in South Africa, with Economic Development Minister Ebrahim Patel having argued earlier that the renewable energy industry create some 300 000 jobs over ten years.

Maia noted that there was a high expectation on the job creation potential of the green economy, but there was also a need for greater clarity on job displacement, as studies on the matter often varied widely.

"It is quite obvious that there will be net winners and net losers," said Maia, noting that, in the transition to the green economy, there could also be job losses.

The IDC undertook a case-study in the wind-energy industry, and said that the opportunities in this sector were substantial, as there were existing manufacturing facilities which could manufacture components, as the country has competitive advantages in certain sectors such as those working with steel and fibreglass.

Construction and civil engineering opportunities also existed, as well as electricity transmission distribution and logistics.

Business Unity South Africa deputy chairperson Raymond Parsons acknowledged that there would be winners and losers in the transition to a green economy, and stressed that these needed to be carefully managed.

Minimising job losses would mean getting the right policy in place, and this policy would need coherence with multistakeholder integration, co-ordination, consultation, consensus as this creates stability, and co-operation from the public and key stakeholders.

Labour representatives were also concerned about potential job losses as the transition to a green economy took place. It was noted that South African workers were already suffering dramatic job losses as a result of the recession, as well as the anticipated 250 000 jobs that were expected to be lost as a result of increased electricity tariffs.

National Planning Commission (NPC) representative Ashraf Kariem noted that as it drew up long-term plans, the NPC would look at how the green economy would assist South Africa in reaching its goals of employing more people and reducing inequality.

The NPC would continue to investigate questions of job creation and job losses and what the net implications would be, the impact on South Africa's imports and exports, how the mining and agricultural industries would be affected, what the impacts of poverty alleviation would be, and so on.