Industrial emissions, including industrial energy use, account for roughly 30 percent of global GHG emissions. With rising energy demand driven by major global megatrends, the need for scalable and sustainable energy solutions for industry is urgent. Industrial spaces have the potential to become sustainable energy hubs, unlocking economic growth opportunities whilst enabling decarbonisation, clean technology and a circular economy. However, fragmented infrastructure and limited energy security continue to constrain investment.

This was the consensus of the discussions at the Industrial Spaces as Sustainable Energy Hubs side event hosted by the National Cleaner Production Centre South Africa (NCPC) and the United Nations Industrial Development Organization (UNIDO) at the 2026 Africa Energy Indaba in Cape Town.

In her key address, UNIDO Program Manager, Karin Reiss-Haimbala said, “Across South Africa, industrial parks, Special Economic Zones (SEZs) and Industrial Development Zones (IDZs) are uniquely positioned to contribute meaningfully to a more resilient and low carbon energy mix. These spaces concentrate demand, infrastructure and investment potential, making them ideal platforms for integrating renewable energy solutions at scale.”

As the country advances its decarbonisation agenda, these hubs can play a critical role in aligning industrial growth with climate commitments.

Chief Director of Green Industries at the dtic, Gerhard Fourie, emphasised the funding challenges faced by governments, while mentioning the strong interest from developed nations in climate finance. He also highlighted existing partnerships with Germany, Flanders, and other developed countries.

Fourie noted the critical role that such international partnership projects play in achieving South Africa's socioeconomic objectives. He explained that government has prioritised climate change mitigation policies and green industrial development to move towards a low-carbon economy.

According to Fourie, government’s approach to industrial development is currently informed by three policy priorities: diversification, digitalisation and decarbonisation.  “The work of the NCPC in industrial spaces addresses all three of these to some extent and makes a significant contribution to the decarbonisation objective. Also, South Africa is able to leverage  the dtic funding of the NCPC to access global climate investment, since international financial institutions generally require cofinancing before releasing funding.”

South Africa’s G20 commitments also call for stronger alignment between energy policy and industrial development. This creates a strategic opportunity to reimagine industrial spaces not only as centres of production, but as active participants in the energy transition. By embedding renewable energy generation, energy efficiency and resource optimisation within these zones, South Africa can simultaneously enhance competitiveness, reduce emissions and strengthen energy security.

The NCPC and UNIDO together implement four flagship projects to promote sustainability and enhance the competitiveness of South Africa's industrial spaces. Visit http://industrialefficiency.co.za/sustainable-industrial-spaces/ to learn more about these projects.