South Africa’s industrial sector underpins economic growth but is also a major source of greenhouse gas emissions and energy demand. With over 400 industrial spaces and continued reliance on fossil fuels, the country has a significant opportunity to improve energy efficiency, strengthen energy resilience and advance low-carbon industrial development.

The LC‑PEIS project supports this transition by promoting integrated energy solutions that combine energy efficiency, distributed renewable energy and system optimisation. Funded by the Government of Flanders and implemented by UNIDO, with support from GreenCape, the National Cleaner Production Centre South Africa (NCPC‑SA) and the Flemish research institution VITO, the project represents South Africa’s first initiative to support the development of Sustainable Industrialisation Hubs, helping transform industrial spaces into centres of low-carbon development.

Making a difference

Launched in 2025 with a budget of €2 million, this four-year project will support industrial transformation by:

  • Demonstrating the business case through concrete high-impact demonstration projects, and developing a pipeline of projects
  • Strengthening the policy and regulatory framework
  • Enhancing the capacity of key stakeholders
  • Promoting investment in the low-carbon transformation of the industrial sector

The project is aligned with:

  • South Africa’s Just Energy Transition (JET) Implementation Plan
  • South Africa’s Renewable Energy Masterplan (SAREM)
  • South Africa’s G20 legacy initiative: The Sustainable Industrialisation Hubs Coalition
  • The COP29 Green Energy Zone Pledge

For more information, refer to the following: