UNIDO South Africa and its partners launched a new project on low-carbon and positive-energy industrial spaces during a roundtable discussion held on 29 April 2025 in the build-up to the second meeting of the G20 in Cape Town, South Africa. The roundtable was attended by 40 representatives of government, industry, the financing institutions and international organisations, and focused on Sustainable Industrialisation Hubs (SIH) as enablers for low-carbon manufacturing and accelerated regional and international trade. The new project was introduced as an example of an SIH in South Africa.
Funded by the Government of Flanders, the project is implemented by UNIDO, with GreenCape, the National Cleaner Production Centre South Africa and the Flemish research institution VITO as technical partners. It will support the low-carbon transformation of SA’s industrial sector by promoting the optimisation of energy consumption and generation of distributed renewable energy in industrial spaces.
Specifically, the project aims to transform industrial spaces into hubs of sustainable energy, accelerate the shift towards renewable, decentralized energy and build a resilient, inclusive and low-carbon economy. This will be achieved by strengthening the policy and regulatory framework, enhancing the capacity of key stakeholders, promoting investment in low-carbon solutions, and demonstrating the business case through pilot projects and building an investment-ready pipeline.
The project will contribute directly to key national and global Initiatives towards low-carbon industrialisation, including South Africa’s South Africa’s Just Energy Transition (JET), the recently launched South African Renewable Energy Masterplan, and the country’s Nationally Determined Contributions. It is also aligned to the with G20 priority of Sustainable Industrialisation Hubs and the Green Energy Zone Pledge signed at COP29.
Speaking at the event, Deputy Minister Samantha Graham Maré of the Department of Electricity and Energy said that the concept of Sustainable Industrialisation Hubs aligns seamlessly with the South African Renewable Energy Masterplan. “These hubs should not be merely locations; they should be at the heartbeat of our future industrial landscape, where clean energy production, critical mineral processing, and advanced manufacturing converge to forge a robust, sustainable economy.”
UNIDO Director of Energy and Climate Action, Rana Ghoneim, also highlighted the opportunities presented by SIH. “Setting these hubs up can create more new clean industries close to the emerging demographic centres in countries with high renewable energy potential. That boosts global energy security, helps to foster cleantech innovations, and promotes decarbonisation.”
In introducing the new project, Thomas Castrel, General Representative of the Government of Flanders in Southern Africa, referred to the importance of collaboration for innovation to thrive, “It is the key to sustainable industrial development and the foundation of a green, just economy – one that meets our current needs without compromising those of future generations.” He said that
Sustainable Industrialisation Hubs are essential in translating these ambitions into action.
Background
The following were important factors that informed the design of the LC-PEIS project:
South Africa contributes 33% of Africa’s total carbon emissions. There are more than 400 industrial spaces in the country, aimed at driving economic growth. However, industry is also a major contributor to the country’s increasing GHG emissions. Moreover, industrial spaces face the following problems:
- Energy insecurity
- Outdated, inefficient equipment
- High energy costs
- Heavy reliance on fossil fuels.
These industrial spaces also have significant potential to produce energy for their own needs and also to support nearby communities.
An integrated energy approach that promotes low-carbon and positive-energy industrial spaces is essential to optimise energy consumption and increase the share of distributed renewable energy generation to the benefit of the country as a whole.
