Namibia is moving to establish a regulatory framework for its emerging green industries, with the draft Green Industrialisation Policy expected to go out for public consultation within the next few weeks.
Eline van der Linden, Head of Impact and ESG at NGH2P, said the policy will seek to translate the country’s green industrialisation ambitions into concrete guidelines, laws and regulations while providing investors and businesses with greater certainty.
The policy follows the development of Namibia’s Green Hydrogen Derivatives Strategy in 2021 and the Green Industrialisation Blueprint in 2024.
“We need to translate these ambitions and plans into tangible projects, guidelines, laws and regulations for the sector, because businesses need certainty and clarity,” van der Linden said.
“We have received a lot of queries about how this and that will work and whether things will still be the same five years from now.”
She said the European Union is supporting the policy development process, with public consultations expected to provide stakeholders with an opportunity to contribute to the proposed framework.
Beyond regulatory certainty, the policy will address skills development, local participation, community involvement, environmental protection, land use, water requirements and the commercial viability of green industry projects.
Van der Linden said developing an industry-ready workforce will be critical as Namibia seeks to ensure that training translates into productive employment in emerging industries.
“We are looking to create an industry-ready workforce. We have a national task force for this process, and I think that is an important aspect because, at the end of the day, we are not training people just to receive certificates that they hang on the wall. We need people to be productive in our space,” she said.
On local and community participation, van der Linden said the policy is considering a voluntary industry approach rather than immediately imposing fixed percentages on private companies.
Companies would be expected to develop socioeconomic development frameworks that extend beyond individual projects and provide benefits to surrounding communities.
“We would like to see some strong targets so that we can have a voluntary approach. If that really goes south, then we want to make another plan,” she said.
The policy will also mainstream gender equality, disability and social inclusion while incorporating health and safety requirements associated with emerging green industries.
Van der Linden said safety would be particularly important for industries involving hydrogen and ammonia because hydrogen is highly flammable while ammonia is toxic.
Environmental protection is another major component of the proposed framework, with van der Linden saying consideration is being given to strengthening the Environmental Management Act, which was last amended in 2017.
“Many years have passed and many changes have happened in society and in the world at large. So we believe it is time for an update to this piece of legislation,” she said.
She said greater attention would also be placed on ensuring that companies comply with commitments contained in environmental and social impact assessments after receiving environmental clearance.
Strategic environmental assessments and land-use planning are also expected to guide the development of projects as green industries compete for land with established sectors such as mining and tourism.
Water availability will be another key consideration, particularly for green hydrogen production.
Van der Linden said green hydrogen projects should not compete for water required by communities, livestock and agriculture, with desalination being considered as the principal option for supplying the emerging industry.
Common-use infrastructure would, however, be assessed according to individual circumstances rather than through a single model.
“We are not foreseeing that there will be one approach. There will be many different approaches to common-use infrastructure,” she said.
Van der Linden said the government must also strike a balance between imposing regulatory requirements and maintaining the commercial viability of projects, particularly given the current cost of producing green hydrogen.
“We must be careful in our policy setting that we are not putting too many additional requirements on the sector that will decrease their likelihood of success,” she said.
She said efforts are also being made to secure concessional capital and grants for green industry projects, while fiscal incentives through the special economic zone are under consideration.
The policy is expected to provide the framework through which Namibia seeks to balance investment and industrial development with local participation, skills development, community benefits and environmental protection.
