Alternative sources of finance for sustainable development in South Africa with specific reference to carbon trading

[摘要] ENGLISH ABSTRACT: The world has been engaged in a global 'development project' since the late 1940s. This processgained new momentum with the end of colonialism and the emergence of newly independentcountries, all of them plagued with high levels of poverty. Traditional models of economic growthbased on industrialization and import-substitution did not deliver the expected results to reducepoverty, especially in Africa. New ways of engaging with development emerged; in particular thebasic needs approach in the 1970s and later the human development approach.Independently a new environmental movement surfaced in the 1960s, responding to the rallying callof global environmental destruction as a result of economic activities. For the first time a globallanguage on the limitations nature presents to development emerged. The 'movement' receivedparticular traction with the emergence of global climate disruption as the single largest globalenvironmental issue. 'Human needs', represented by the anthropocentrists, and 'environmentallimitations', represented by environmentalists were merged in an uncomfortable union to give birth tothe notion of sustainable development. Yet, as a result of a large variety of perspectives, noagreement has been reached on what sustainable development means or should achieve.There is agreement though that developmental needs and environmental challenges are both urgent.An important unanswered question is how the world will pay for sustainable developmentinterventions. Some interesting ideas on alternative sources of development finance has beenaround for a while, yet has not found practical application. Carbon finance, an innovative new sourceof funding, is an exception.This exploratory research was conducted by reviewing existing relevant literature using the inductivelogic technique. It was initiated as a result of specific experiences leading the researcher to somegeneral 'truths'.The findings revealed that carbon markets, which are primarily focussed on reducing carbonemissions and which in itself makes a positive contribution to sustainability, has over the last fewyears successfully leveraged billions of dollars for investment in sustainable development projectsglobally. Some of these have the added advantage of co-benefits for the poor. Its role is set to expand as a source of development finance. South Africa has the potential to earn large amountsfrom carbon trading, assisting the country to move to a more sustainable development trajectory. Thefindings concluded that realising this potential will require a more focussed approach, especially fromthe South African Government.

[发布机构] Stellenbosch University